Dr Mukhisa Kituyi, head of the UN Conference on Trade and Development,
pictured November 23, 2015. The agency Unctad) wants African governments
to create more direct and indirect jobs through extractive industries
to drive prosperity. PHOTO | FILE
The United Nations Conference on Trade and Development (Unctad)
wants African governments to create more direct and indirect jobs
through extractive industries to drive prosperity.
According
to the United Nations agency, oil, gas and mining industries currently
account for just one per cent of the continent’s workforce, which is not
sufficient to promote economic growth and bolster social inclusion.
The
push for increased employment opportunities came up during an oil, gas
and mining conference held in Khartoum, Sudan, organised by Unctad,
which ended Thursday.
It brought together experts and
industry players as well as policy makers from around the world to
explore potential for exploration and production of oil, gas and
minerals in Africa.
“The benefits that the extractive
industries could bring to developing countries include revenues for host
countries through production sharing agreements, royalties and income
taxes. The development of the extractive industries could also generate
wider economic benefits and promote inclusive growth and sustainable
development,” said Unctad in a statement.
The UN
estimates that in Africa, only five million jobs are created for the
over 12 million young people entering the labour force annually.
Africa is home to eight per cent of the world’s oil and gas reserves.
The
United States Geological Society also ranks the continent second in its
share of world’s reserves of various metals including industrial
diamond, rutile, ilmenite and zirconium, among others.
Given their capital intensive nature, extractive industries do not create many direct jobs.
However,
they offer opportunities for support industries such as catering,
logistics and security, among others, which absorb a large pool of
workers.
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