Africa’s Skills and Labour Market

Problems

- A private sector perspective

Foluso Phillips

Phillips Consulting Group

Understanding Africa

Africa is all about 800 million people Africa is all about 800 million people failing to convert unquantifiable failing to convert unquantifiable riches into phenomenal wealth.riches into phenomenal wealth.

3

…failing to add value

Africa’s Realities

• Africa contributes only 1% of global gross domestic product

• Africa participates in a mere 2% of international trade

• Africa’s average growth rate in the 1990’s was 2%

• At 5% average growth rate per annum, Africa will be poorer than it currently is

• Africa will have to grow consistently at 7% per annum up to 2015 to just halve the number of its severely poor.

Africa is a rich but not a wealthy continent

• Africa has the biggest flight of capital and skills in the world

• Less than 10 African countries have a GDP of over $10b

• Africa is the leading recipient of development aid for more than 30 years ($10bn in 1999)

• Least recipient of capital flows in past 15 years

• 50% of FDI goes into petroleum and mining.

• SA, Egypt, Algeria & Nigeria account for over 50% of trade volumes in Africa.

NEPAD

New Partnership for Africa’s Development

The African Union’s Instrument of Action

EDUCATION drives it all!

Public Spending in Education as share of GDP

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0.7

5.46.0

4.2

6.5

3.7 3.0% s

hare

of

GD

P

Nig

eri

a

US

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France UK

Sin

gapore

S.

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2001

Public Spending on Education as a Share of GDP (AFRICA)

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0.7

7.6

2.6

7.1

5.04.2

3.6

% s

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of

GD

P

Nig

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S.

Afr

ica

Ug

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Gh

ana

Ken

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2001

Nigerian Government’s Budgetary Allocation to Education

10%15%20%25%30%35%40%45%

40.0%

7.2%

12.6%

17.6%

10.3 %

11.10% 8.4

0%

1960 1995 1996 1997 1998 1999 2000 2001

5% 7.0%

%

Allo

cati

on

Title S. Africa

Egypt Mauritius

Nigeria Zimbabwe

Tech Sophistication

29 58 61 70 59

High Skilled IT Job Market

40 37 48 59 63

IT Education 44 51 64 69 50

Prioritization of ICT

42 14 12 63 74

Quality of Public Schools

53 51 44 68 54

Difference in Quality of Schools

64 54 39 69 66

Extent of Staff Training

26 45 38 62 34

Management of Schools

19 55 72 52 66

Some African Competitiveness issues

Availability of Skilled Labour?

• Africa’s educational system is flawed• Africa’s investment in education is

inadequate• Inadequate national planning on

education– Strategic focus of each country– National competence of each county– Industrial clusters and organisational

competencies• Global competitiveness (Technology).

Challenges of the Private Sector

• Poor strategic planning of manpower needs• Inability to define & specify required

competencies• Flawed recruitment process

– Matching people to jobs– Being painstaking in the process– Using recruitment professionals– The cost of recruitment errors

• Retention strategies are not in place– There is a need to focus on keeping people– Education and Training

• Not managing employee’s careers• Competitive reward and recognition systems• Learning to grow own labour pool .

Supporting Investment and Growth

• Vocational training• Greater investment in pre-

tertiary– Primary, secondary, vocational

• Telecommunications• Information technology• Power generation engineering• Mechanical engineering• Infrastructure construction• Beneficiation of natural

resources– Mineral mining– Oil exploration– Oil beneficiation– Agriculture.

Going back ‘home’

• Jobs are running out in the western world• What are your competencies?

– Knowledge, skills, attitude – What is the relevance of your

experience?• Skills are always relevant – its finding the

right job• Plan your return home• Manage your expectations through

research• Seeking opportunities in Africa and not

own home country • Entrepreneurial – doing your own thing• You don’t have to come home…but !.

Africa – A Continent of Opportunities

• Huge labour population• Phenomenal Raw Materials• Very High unemployment• Shortage of the right skills• Wrong focus of skill development• Little or no manpower planning• Skewed population profile• Very inadequate investment in skills

development• The technology paradigm – another lost

opportunity?.

Thank You!