banner

oilgas1
542 Views

Africa’s oil, gas and mining sectors must create more direct and indirect jobs to drive prosperity


At UNCTAD’s 17th African OILGASMINE Conference and Exhibition, taking place in Khartoum, Sudan, from 23 to 26 November 2015, governments, the private sector, and civil society will discuss redefining the role of extractive industries in job creation, both within the sector and in the broader economy.

Conference participants from all over the world will analyse the potential for exploration and production of oil and gas, and investment opportunities, in Sudan and other African countries.

The oil, gas and mining industries – currently employing around 1 per cent of Africa’s workforce – can do more to create more stable, direct and indirect wage-paying jobs that not only promote economic growth but also protect the environment and foster social inclusion.

In Africa, only around 5 million new jobs are created for more than 12 million young women and men joining the labour force every year, but an International Finance Corporation study in Ghana found, for example, that the creation of one direct job in the mining sector could generate 27 additional jobs in the wider economy.

Africa holds 8 per cent of world oil reserves and gas reserves, and the United States Geological Society ranks the continent first or second in its share of world reserves of a long list of metals and minerals, such as bauxite, chromite, cobalt, ilmenite, industrial diamond, manganese, phosphate rock, platinum-group metals, rutile, soda ash, vermiculite and zirconium.

The benefits that the extractive industries could bring to developing countries include revenues for host countries through production sharing arrangements, royalties and income taxes. The development of the extractive industries could also generate wider economic benefits and promote inclusive growth and sustainable development.

The extractive industries, given their capital intensive nature, may not create many direct jobs, but their linkages with the broader economy may help generate additional jobs. Through these linkages the sector is connected with the suppliers of inputs; outputs are processed into added-value products; demand is generated for locally produced goods and services; and an enabling environment is created for new industries using skills and capabilities acquired from the extractive industries.

To compare Africa’s potential with developed country experience, a recent survey of the United States’ oil and gas industry revealed that the industry as a whole generated over 9.3 million permanent jobs across the nation, among which are 3.1 million jobs in retail trade, and half a million jobs in health services.

Such jobs are not created automatically. Targeted policies such as developing linkages, removing entry barriers to specific industry value chains, building the necessary infrastructure to attract investment, improving access to finance and developing workforce skills needed, are crucial to expanding job opportunities and increasing employment.

Artisanal mining, as a labour intensive mining process, is, for example, well known to generate more direct and indirect jobs than large-scale mining. In Africa artisanal mining is estimated to create about 8 million direct jobs which support over 45 million people.

The conference, organized by UNCTAD and the Government of Sudan, is being held in the context of the new development agenda: Sustainable Development Goal 8 calls for action “to achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value by 2030”.

Source: unctad


Follow Alive2Green on Social Media
TwitterFacebookLinkedInGoogle +

Recently Published

a2g African Construction
»

Learning and Networking for the Construction Industry

The African Construction and Totally Concrete Expo returns to ...

a2g manufacturing Indaba
»

Developing New Manufacturers Advancement in machine learning and industrial innovations vital to boosting South Africa’s manufacturing sector.

 Following the 2008 financial crisis, which caused many industrial ...

Smart City
»

Smart Cities Redefining Property Developments

Some of South Africa’s biggest mixed-use developments are evolving ...

Landscaping
»

Changing Landscaping Habits – Cape Town’s Day Zero threat to change landscaping habits says Easigrass

As dam levels in the Western Cape hover at around 20 percent, the ...

Screen Shot 2018-03-29 at 10.23.43
»

GCIP-SA now part of TIA

The Global Cleantech Innovation Programme for SMMEs and Start-ups in ...

manu
»

Made in Africa: Building The Future of Manufacturing

The annual Manufacturing Indaba provides a platform for international ...

Utility Week
»

Expand your knowledge in over 40 conference sessions at African Utility Week and save money!

The largest group of power, energy and water professionals will ...

ProductivitySA
»

The 20th Anniversary Challenge of The Workplace Challenge

Vania Reyneke, Project Manager, The Green Economy Journal attended ...

a2g
»

Sustainability in building design has won Renée Minnaar of the University of Pretoria a place at 31st Corobrik Architectural Student of the Year Awards

Sustainable building demands architectural design that aims to ...