The World Bank has called upon countries in sub-Saharan Africa, including Nigeria, to implement cost-effective private sector reforms, enforce policies consistently across firm sizes, and align regulations with regional trading partners.
These recommendations come as part of an effort to address the challenge of slowing economic growth and to generate job opportunities in the region.
In its latest Africa’s Pulse report, the World Bank emphasized the need for governments in SSA to identify and support the early-stage growth of businesses.
This support includes more inclusive procurement practices and the promotion of local businesses internationally to enhance human capital.
The report also highlighted the importance of investing in education to bolster semi-skilled occupations in the region.
According to the report, the region’s poorest and most vulnerable individuals continue to suffer from the economic slowdown, resulting in slow poverty reduction and limited job growth.
Africa, despite contributing 12 percent of the global working-age population, only owns two percent of the global capital stock, according to the report.
It pointed out that the absence of labor-intensive manufacturing in Africa is hindering indirect job creation in support services and international trade, partly due to a lack of capital.
World Bank Chief Economist for Africa, Andrew Dabalen, stressed the urgency of the situation, stating, “With up to 12 million young Africans entering the labor market across the region each year, it has never been more urgent for policymakers to transform their economies and deliver growth to people through better jobs.”
He highlighted that current growth rates are insufficient to create high-quality jobs to accommodate the growing working-age population.
Nicholas Woolley, a World Bank Economist and contributor to the report, emphasized that the job challenges in sub-Saharan Africa are exacerbated by the missed opportunities presented by demographic transitions seen in other regions.
He stressed the need for an ecosystem that fosters private sector development, firm growth, and skill development that aligns with business demand.
The World Bank’s report also called for interventions to improve learning in schools and vocational education, particularly for those who have missed out on formal education.
Additionally, the report highlighted the importance of girl education and increasing women’s access to jobs, as this can help reduce productivity loss due to the underutilization of female labor.
