regional infrastructure as a catalyst for job creation
TRANSCRIPT
Regional Infrastructure as a Catalyst for Job Creation
THE FIRST ORDINARY SESSION OF THE AU STC ON TRANSPORT, INTERCONTINENTAL AND INTERREGIONAL INFRASTRUCTURE,
ENERGY AND TOURISM
14th March 2017, Lomé/Togo
Outline
1. HowcaninfrastructurecreateemploymentforAfrica’slabourforce?
2. Whatisneededfromourpoli=calleadersandpolicymakerstorealizethejobcrea=onpoten=alofinfrastructure?
Africa`sDemographicDividend
• 300millionyouthenteringthelabourmarketun=l2030
• HalfofAfrica`scurrentpopula=onof1.1billionunder25years
“Apopula)onthathasanaverageageof49yearscannotbegovernedinthesamewayasapopula)onwheretheaverageageis19yearsold.“=>Capitalizeonthedemographicdividendandcreatejobs(seealsoAgenda2063)
Sources:WorldBank(2011),AfricaDevelopmentIndicators2011,WashingtonDC;UNWorldPopula=onProspects
Infrastructureasacatalystforjobcrea=on
• Infrastructureandeconomicdevelopment:Infrastructureinvestmentcontributesupto2%toGDPofAfricanna=ons(OECD2012)
• Infrastructureandjobcrea=on:DirectJobs IndirectJobs InducedJobs Spill-overeffectsCreatedthroughprojectprepara=on,construc=on,opera=onandmaintenanceofinfrastructure
Createdbyinputsofgoodsandservicesforinfrastructureprojects
Createdbyconsump=onbyworkersdirectlyorindirectlyemployed
Createdfromincreasedtransportandtrade,improvedelectrifica=on,beTerinternetconnec=vity,etc.
PIDACanCreateJobsforAfrica`sYouth
AfricanleadersadoptedPIDAin2012asthemeanstos=mulatesocio-economicgrowth,investment,andintra-Africantrade!HowPIDAcancreatejobs–someexamples/es=mates:1. INGAIII:7,000construc=onjobsand3,000permanentjobsduring
opera=on(source:SociétéNa=onaled’Electricité(SNEL))2. Trans-AfricanHighwayNetwork:350,000permanentjobsfor
maintenanceandnotablespillovereffectsfromincreasedtrade(source:WorldBank)
3. SambangalouDam:1000fishingjobsinthereservoir(source:BRLIngénierie)
Example:North-SouthCorridor
KasumbalesaBorderPost
Harare–ChirunduRoad
BeitbridgeBorderPost*
Harare-Beitbridge
Road
*LusakaDryPort
NorthSouthCorridorRail
BeiraMachipandaRoad/Rail
NorthSouthCorridor–Es=matedImpactsCreate547kextrajobsby2035;forexample:• 88knewjobsintheagriculturesectorofTanzania
• 2kjobsinmininginZimbabwe• 43kinretail&wholesaleinMozambique
• 11kinagricultureinDRC• 31kinmanufacturinginSouthAfrica
Source:DBSA/BCG
MaximizingJobCrea=onwithInfrastructure–Planningand
Implementa=onToolkit• CurrentlybeingdevelopedbyNEPADAgency• TheToolkitwillgiveprac=calanswerstotwoques=ons:
1. Howcanwees=mateandtracktheimpactofinfrastructuredevelopmentonthelabourmarket,i.e.howmanyjobsarecreatedviatheimplementa)onofPIDAprojects?
2. Howcanweplanandcoordinateregionalinfrastructureprojectssothatjobcrea=onismaximised/op=mized?
Whatisneededfromourpoli=calleadersandpolicymakerstorealize
thejobcrea=onpoten=alofinfrastructure?
Policiesandregula=onsonAfricanLocalContent
- PromoteinfrastructuredevelopmentsupportedbyAfricanlocallabourandAfricanlocalsuppliers,therebycrea=ngemploymentanddemandforlocalbusinesses
- Thespa=aldimensionofthelocalcontentpolicyinthePIDA/Africancontextwillberegional
Examplesofop=onallocalcontentpoliciesthatcouldbeadoptedbyAfricancountries(a`ereconomicimpactanalysis):- Requiringorincen=vizinguseofAfricanservicesuppliersandlabour- Requiringjointventuresoraspecifiedlevelofdomes=cequity- Requiringorincen=vizingtransferoftechnology
NigerianLocalContentPolicy–preliminaryresults
Source:AfricanDevelopmentBank,Bill&MelindaGatesFounda=on;Paper6:Crea=nglocalcontentforhumandevelopmentinAfrica‘snewnaturalresourcerichcountries
Enablinglocalcontentdeliverywithskillsandenterprisedevelopment
SkillsDevelopment–Whatneedstobedone?
Iden=fica=onoftheSkillsGap:Ø Defini=onofthemarketdemandandskill-sets
neededtoimplementpriorityinfrastructureprojects
Ø Comprehensiveanalysisoflabourmarkets:What
infrastructure-relevantskillsarecurrentlyavailable?
Ø Iden=fica=onoftheSkillsGap:Whatskillsneed
tobedevelopedtoprepareandimplementthepriorityinfrastructureprojectsusinglocallabourandsupplies?
“Capitalforinfrastructurefinancingisavailable.Whatislackingarewell-prepared,bankableprojects.Tohavethese,capacityandwell-skilledexpertsareneeded.Eitherwebuildthiscapacityonourowncon)nentwithadequateskillsdevelopmentschemesorwehavetoimporttheseskillsfromoutside.”MoeShaik,DBSA,PIDAWeek2015
Requiredpolicyac=onstocloseskillsgap
1. Makeitapoli=calpriority
2. Createaregionalskillsmarket
3. Strengthentrainingins=tutesanduniversi=es4. AdaptCurricula5. Combinepublicemploymentprogramswithskills
development
6. Formstrategicpartnerships
EnterpriseDevelopment
• Iden=fica=onofsuitablelocalSMEs/poten=alentrepeneurstorespondtomarketdemand
• Sefngupcapacitydevelopmentprogrammesinclosecoopera=onwithleadbusinesses
• Improvingaccesstofinance
• UpscalingofSMEstointerna=onalindustrystandards
• Mentoringprogrammes
• Sefngupsustainablestructures:Incubators,partnershipswithTVETcenters,industryenhancementcenters
Projectsponsorsareprovidedwithinforma)on
onpoten)alAfricansuppliers
Suppliersareprovidedwithinforma)onandneededsupporttoselltheirservices(Enterprise
Development)
MatchingFunc=onaligningInfrastructureProjectswithAfricanSuppliers
AfricanProvidersofServices&ProductsInfrastructureProjects
MatchingFunc=ontoMaximizeJob
Crea=on
ClosingtheGAP:
- Incen=ves&Regula=ons
- Matching- Training&
Internships- Addressing
inefficiencies
15
Integra=ngjobcrea=onininfrastructureprojectplanning
LocalcontentrequirementsinToRforstudiesandmatchmaking
Analysisofrequiredskillsandrespec=vecapacitybuilding
LabourmarketeffectsinESIAs
Localcontentrequirementsintenderingdocuments
Specializedmonitoringins=tu=ons
DraqRequeststoMemberStates(1/2)
WeherebyrequestMemberStatesto:
1. Acknowledgethepoten=alofregionalinfrastructuredevelopmentasakeylevertocreatejobsandmakeavailableinforma=onanddataoninfrastructureprojectsasinputsforjobes=ma=on
2. Worktogethertoformulateharmonizedpolicies,tenderingregula=ons,andregionallabormobilityprocessesforinfrastructuredevelopmentrequiringand/orincen=vizingtheuseofAfricanlocalcontenttocreatelocaljobs,strengtheninglocalbusinesses,enablingtheregionalpoolingofAfricanlabour,andensuringtechnologytransfer
3. Iden=fytheinfrastructureskillsgapandprepare(regional)skillsdevelopmentstrategiesthatenableAfrica‘slabourforce,especiallyAfricanwomen,tomeettheindustryskillsrequirementstopar=cipateinlarge-scaleinfrastructureprojects.
4. Engageinstrategicpartnershipswithkeyprivatesectoractorstopromotevoca=onaltraining,internships,andtransi=on-to-workini=a=vesininfrastructuredevelopment
5. SupportthecapacitybuildingandaccesstofundingofAfricanSMEs,sothattheyqualifyforinfrastructuretendersandcanprovidesuppliesforinfrastructureprojects
DraqRequeststoAUC/NEPADAgency
WefurtherrequestMemberStatesto:
5. LaunchprojectfinancetrainingprogramstoenableAfricanconsul=ngcompaniestoprovidetherequiredprojectfinancesupportforinfrastructuredevelopment(e.g.,financialadvisory,legalsupporttosetupins=tu=onalandlegalstructures,nego=atecontractswithsuppliersofequipmentandservices,arrangeforequity/debtfinanceandriskmi=ga=onstructures)
6. Supportthecrea=onofaPlaiormthatmatchesAfricanInfrastructureProjectswithAfricanSuppliers,enablingprojectsponsors,governments,developmentpartners,andtheprivatesectortocolloborateinneededinterven=ons
7. TasktheAfricanUnionCommission/NEPADAgencyto:a) FinaliseanddisseminatetheJobCrea=onToolkittoes=mateandtracklabourmarket
effectsofregionalinfrastructureprogramsb) Provideaprac=calguideforprojectimplementersonhowtointegrateskills
developmentandemploymentpromo=onintheinfrastructureprojectlifecyclec) Developandpilottheintegratedcorridorapproachtolinkindustrialhubsandrural
areas,promoteregionalvaluechains,thuscrea=ngnewemploymentopportuni=es
Ques=onsanddiscussion
شكرا
MERCI
OBRIGADO
THANK YOU