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Africa’s current population boom means 1 million new jobs are needed each month. Unfortunately， many African countries share the same problem of not being able to create enough jobs for their upwardly mobile youthful populations. While the employment effect of Chinese investment in Africa has always been questioned by international observers， a recently released study hopes to shed some light on this often talked about issue.
Researchers at the Center for Chinese Studies， Stellenbosch University， studied the investment of 16 Chinese enterprises in Johannesburg， South Africa， to analyze their possible employment effects in South Africa. Their results found these Chinese investments bring about job opportunities to the local people and alleviate employment pressures， including for many local low-skilled or unskilled laborers. In addition， South Africa’s strict labor laws， its powerful labor unions， as well as the international orientation of Chinese enterprises in South Africa ensure the employment quality of Chinese enterprises often meets the host country’s legal requirements. While the findings conclude that Chinese investment makes an overall positive employment effect， researches also argue that an improvement in the investment environment of South Africa is a prerequisite for further expanding the employment effect of Chinese firms.
The World Bank estimates that the Chinese economy will shed 85 million jobs by 2022 as it moves up the value chain and workers demand higher wages and better living standards. A growing number of Chinese manufacturing companies are assessing Africa as a potential site for low-cost production. Duty-free and tariff-free access to American and European markets through the African Growth and Opportunity Act （AGOA） and Cotonou Agreement remain underexploited incentives to manufacturers.
In 2012， China announced plans to remove tariffs on 97 percent of items from 30 least developed African countries， and pledged to train 30，000 workers and provide 18，000 scholarships. Repeated affirmations from the Chinese Government of the intention to bolster regional trade， link African products to global supply chains， and improve the variety of imports and the quality of exports reaffirm the increasingly widespread business plans of forward-looking Chinese manufacturers who are painfully experiencing the end of China’s demographic dividend.
Solutions to Africa’s underemployment problem should not be limited to the manufacturing sector. In November， Chinese property developer Shanghai Zendai announced its ambitious plan to turn a suburb outside Johannesburg into the “New York of Africa，”with a financial district， 10 hotels， 10 shopping centers and an African culture theme park. According to Chairman Dai Zhikang， Shanghai Zendai will invest $7.8 billion over the next 15 years to develop the area， and will create at least 20，000 jobs. Perhaps even more importantly over the long run， the development will also provide a base for Chinese companies looking to expand into Africa， creating even more employment opportunities.
Africa’s labor force is projected to grow to the largest in the world by 2035. African governments must enact bold initiatives to seize their demographic advantage in order to secure stable wagepaying jobs and inclusive economic growth for Africa’s populace. into more diversified economies and sustainable growth.
Researchers at the Center for Chinese Studies， Stellenbosch University， studied the investment of 16 Chinese enterprises in Johannesburg， South Africa， to analyze their possible employment effects in South Africa. Their results found these Chinese investments bring about job opportunities to the local people and alleviate employment pressures， including for many local low-skilled or unskilled laborers. In addition， South Africa’s strict labor laws， its powerful labor unions， as well as the international orientation of Chinese enterprises in South Africa ensure the employment quality of Chinese enterprises often meets the host country’s legal requirements. While the findings conclude that Chinese investment makes an overall positive employment effect， researches also argue that an improvement in the investment environment of South Africa is a prerequisite for further expanding the employment effect of Chinese firms.
The World Bank estimates that the Chinese economy will shed 85 million jobs by 2022 as it moves up the value chain and workers demand higher wages and better living standards. A growing number of Chinese manufacturing companies are assessing Africa as a potential site for low-cost production. Duty-free and tariff-free access to American and European markets through the African Growth and Opportunity Act （AGOA） and Cotonou Agreement remain underexploited incentives to manufacturers.
In 2012， China announced plans to remove tariffs on 97 percent of items from 30 least developed African countries， and pledged to train 30，000 workers and provide 18，000 scholarships. Repeated affirmations from the Chinese Government of the intention to bolster regional trade， link African products to global supply chains， and improve the variety of imports and the quality of exports reaffirm the increasingly widespread business plans of forward-looking Chinese manufacturers who are painfully experiencing the end of China’s demographic dividend.
Solutions to Africa’s underemployment problem should not be limited to the manufacturing sector. In November， Chinese property developer Shanghai Zendai announced its ambitious plan to turn a suburb outside Johannesburg into the “New York of Africa，”with a financial district， 10 hotels， 10 shopping centers and an African culture theme park. According to Chairman Dai Zhikang， Shanghai Zendai will invest $7.8 billion over the next 15 years to develop the area， and will create at least 20，000 jobs. Perhaps even more importantly over the long run， the development will also provide a base for Chinese companies looking to expand into Africa， creating even more employment opportunities.
Africa’s labor force is projected to grow to the largest in the world by 2035. African governments must enact bold initiatives to seize their demographic advantage in order to secure stable wagepaying jobs and inclusive economic growth for Africa’s populace. into more diversified economies and sustainable growth.