Lagos – The UN Conference on Trade and Development (UNCTAD) on Tuesday urged Africa’s Oil, Gas and Mining sectors to leverage the sector by creating more direct and indirect jobs.
An UNCTAD statement said in Lagos that the oil, gas and mining industries, currently employing one per cent of Africa’s workforce, could create more stable, direct and indirect wage-paying jobs.
It said that jobs would not only promote economic growth but also protect the environment and foster social inclusion.
The statement said the UNCTAD 17th African OILGASMINE meeting, taking place in Khartoum, Sudan, from Nov. 23 to Nov. 26 would focus on redefining the extractive industry for greater productivity.
It added that participants would analyse the potential for exploration and production of oil and gas and investment opportunities in Sudan and other African countries.
“In Africa, only around five 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.[pro_ad_display_adzone id=”70560″]
“Africa holds eight per cent of world oil and gas reserves.
“The U.S. 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 and chromite.
“Others are cobalt, ilmenite, industrial diamond, manganese, phosphate rock, platinum-group metals, rutile, soda ash, vermiculite and zirconium,’’ the statement said.
It explained that the extractive industries could bring to developing countries revenues, royalties and income taxes.
More than this, it said that the development of the extractive industries could generate wider economic benefits and promote inclusive growth and sustainable development.
The statement said the industries, given their capital intensive nature, might not create many direct jobs but their linkages with the broader economy might help to 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,’’ the statement said.
It said that the conference, organised by UNCTAD and the government of Sudan, was being held in the context of the new development agenda.
It added that the Sustainable Development Goal 8 calls for action in the creation of jobs for all.
“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,’’ it said. (NAN)