Creating Jobs and Developing Skills is Vital to Sustaining Livelihoods of Communities
By Kuda Mukova
Despite the immense developmental gains that sub-Saharan Africa has seen over the past few decades, there is no doubt that much work remains to be done. According to the 2023 Multidimensional Poverty Index (MPI) released by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) at the University of Oxford, some 534 million people live in poverty across the region.
We still fall behind on other developmental indices too. Data from the World Bank shows that nearly half the region’s population doesn’t have access to electricity and, according to the World Economic Forum, just 39% of people in the region have water connected to their homes. Mobile internet connectivity rates are similarly low, at 40%, according to GMSA. While it’s important that governments and private sector partners across the region work to address those infrastructural challenges, additional action is required too.
It’s equally critical that people, particularly in low-income communities, are given the skills they need to build sustainable jobs and livelihoods. Doing so is crucial not only to lifting people out of poverty but also to the long-term future of these communities.
A sustainable path out of poverty
The absolute key word, when it comes to building livelihoods that help people escape poverty, is sustainability. While initiatives like public works programmes can help provide income boosts, particularly in poorer areas, the work is often temporary. That means that, once a road is repaired, trees are planted, or a park is cleaned up, the work goes away until the next project comes up.
In many cases, these programmes also don’t come with skills development components. That, in turn, means that people are left dependent on these programmes, rather than being able to build sustainable livelihoods for themselves.
Fortunately, it doesn’t have to be that way. The right investments, made in the right ways and the right places, can help create sustainable jobs and develop skills that offer people a sustainable path out of poverty.
In fact, companies across the region are desperate for skilled workers. While more current statistics are difficult to find, it’s telling that a majority of private African companies, according to Statista, reported losing out on revenue because of skills shortages in 2019.
These skills shortages are keenly felt even in the region’s most industrialised economies. In South Africa, for example, the Mail & Guardian reported that there were more than 77,000 jobs available but which couldn’t be filled due to a skills shortage. That’s in addition to the 300,000 jobs that have been outsourced to people who live overseas.
It’s critical, therefore, that investors in the region look at ways of building skills development into their investments.
It’s also important to note, however, that it’s also critical to empower and upskill people across the region from an entrepreneurial perspective.
Take East Africa’s boda-boda drivers for example. Along with their motorbikes, these drivers fulfil numerous roles, from acting as single-person taxis to delivery services. From the urban centres in Uganda to the most remote villages, boda bodas are quick, inexpensive, and readily available to get the people where they need to be. They also provide a huge boost to small business owners who make substantial savings while using boda bodas to transport goods across the country.
For many people struggling to earn a sustainable livelihood, the boda boda business has enabled them to become entrepreneurs and indirectly offers employment opportunities to many others. With properly structured loan investments, these drivers can grow their businesses, and boost their income. Over time, they may even be able to employ other drivers, which not only aids with job creation but also in boosting local economies.
We’ve witnessed how powerful the right credit-based approach can be with our own portfolio company Watu Credit. To date, Watu has created over 3,000 direct jobs and has provided over 600,000 loans across seven countries, which have positively impacted the lives of more than 3.6 million people.
Unleashing Africa’s full potential
Ultimately, what these examples show is how powerful the right approach to African investment can be. By focusing on long-term sustainable job creation and skills development, many more people will be pulled out of poverty, to the benefit of both themselves and the communities they live and work in. And given the immense potential waiting to be unleashed across the continent, it’s an investment approach that could deliver seriously rich dividends.
Kuda Mukova is the Head of Impact and Sustainability at Norsad Capital
"Kutengeneza ajira na kukuza ujuzi ni muhimu kwa kudumisha maisha ya jamii, ""Kutokana na mafanikio makubwa ya maendeleo ambayo Afrika Kusini mwa Jangwa la Sahara imeona katika miongo michache iliyopita, hakuna shaka kwamba kazi nyingi bado inapaswa kufanywa." Kulingana na ripoti ya Multidimensional Poverty Index (MPI) iliyotolewa na Shirika la Umoja wa Mataifa la Maendeleo (UNDP) na Oxford Poverty and Human Development Initiative (OPHI) katika Chuo Kikuu cha Oxford, watu milioni 534 wanaishi katika umaskini katika eneo hilo. Bado tunashindwa katika viashiria vingine vya maendeleo pia. Takwimu za Benki ya Dunia zinaonyesha kuwa karibu nusu ya wakazi wa eneo hilo hawana umeme na kulingana na Mkutano wa Kiuchumi wa Dunia, ni watu 39% tu katika eneo hilo walio na maji ya maji kwenye nyumba zao. Kiwango cha uunganisho wa mtandao wa rununu ni cha chini sana, kwa asilimia 40 kulingana na GMA. Wakati ni muhimu kwamba serikali na washirika wa sekta binafsi katika mkoa wote kufanya kazi ili kukabiliana na changamoto hizo za miundombinu, hatua za ziada zinahitajika pia. Ni muhimu pia kwamba watu, hasa katika jamii zenye mapato ya chini, wapewe ujuzi wanaohitaji kujenga kazi endelevu na njia za kuishi. Kufanya hivyo ni muhimu si tu kwa kuinua watu kutoka umaskini lakini pia kwa siku zijazo za muda mrefu za jamii hizi. Njia endelevu ya kutoka umaskini Neno muhimu kabisa linapokuja kujenga njia za kuishi ambazo husaidia watu kutoroka umaskini ni endelevu. Ingawa mipango kama vile programu za kazi za umma inaweza kusaidia kutoa kuongeza mapato, haswa katika maeneo maskini, kazi mara nyingi ni ya muda. Hii inamaanisha kwamba mara tu barabara inaporekebishwa, miti inapopandwa, au bustani inapopambwa, kazi hiyo inaendelea hadi mradi unaofuata utakapokuja. Katika visa vingi, programu hizi pia hazijaja na vipengele vya maendeleo ya ujuzi. Hii ina maana kwamba watu wanabaki kutegemea programu hizi, badala ya kuweza kujenga njia za kuishi kwa wenyewe. Kwa bahati nzuri, si lazima iwe hivyo. Uwekezaji sahihi, uliofanywa kwa njia sahihi na mahali sahihi, unaweza kusaidia kuunda kazi endelevu na kukuza ujuzi ambao hutoa watu njia endelevu ya kutoka umaskini. Kwa kweli, makampuni katika eneo hilo yanahitaji sana wafanyakazi wenye ujuzi. Ingawa takwimu za sasa ni ngumu kupata, ni kusema kwamba idadi kubwa ya makampuni ya kibinafsi ya Kiafrika, kulingana na Statista, yaliripoti kupoteza mapato kwa sababu ya upungufu wa ujuzi katika 2019. Upungufu huu wa ujuzi unahisiwa sana hata katika uchumi wa kiviwanda zaidi wa mkoa huo. Kwa mfano, gazeti la habari la The Mail & Guardian liliripoti kuwa kuna nafasi za kazi zaidi ya 77,000 ambazo hazikuweza kujazwa kwa sababu ya upungufu wa ujuzi. Hiyo ni pamoja na kazi 300,000 ambazo zimetolewa kwa watu wanaoishi nje ya nchi. Ni muhimu, kwa hiyo, kwamba wawekezaji katika mkoa kuangalia njia ya kujenga maendeleo ya ujuzi katika uwekezaji wao. Ni muhimu pia kutambua, hata hivyo, kwamba ni muhimu pia kuwezesha na upskill watu katika mkoa wote kutoka mtazamo wa ujasiriamali. Kwa mfano, fikiria madereva wa boda-boda wa Afrika Mashariki. Pamoja na pikipiki zao, madereva hawa hutimiza majukumu mengi, kuanzia kufanya kazi kama teksi za mtu mmoja hadi huduma za kupeleka. Katika maeneo ya mashambani na vijijini, Boda Boda ni njia ya haraka, ya bei nafuu na ya haraka ya kuwafikia watu. Pia, ni muhimu kwa wafanyabiashara wadogo ambao wanafanya mapato makubwa wakati wa kutumia boda bodas kusafirisha bidhaa kote nchini. Kwa watu wengi wanaojitahidi kupata riziki endelevu, biashara ya boda boda imewawezesha kuwa wajasiriamali na kwa njia isiyo ya moja kwa moja inatoa fursa za ajira kwa wengine wengi. Kwa uwekezaji wa mkopo ulioundwa vizuri, madereva hawa wanaweza kukuza biashara zao, na kuongeza mapato yao. Baada ya muda, wanaweza hata kuajiri madereva wengine, ambayo sio tu husaidia kuunda ajira lakini pia katika kuongeza uchumi wa mitaa. Tumeshuhudia jinsi mbinu sahihi ya msingi wa mkopo inaweza kuwa na kampuni yetu ya kwingineko Watu Credit. Hadi sasa, Watu imeanzisha kazi zaidi ya 3,000 moja kwa moja na imetoa mikopo zaidi ya 600,000 katika nchi saba, ambayo imeathiri maisha ya watu zaidi ya milioni 3.6. Kutolewa kwa uwezo kamili wa Afrika Mwishowe, kile mifano hii inaonyesha ni jinsi mbinu sahihi ya uwekezaji wa Afrika inaweza kuwa na nguvu. Kwa kuzingatia uundaji wa ajira endelevu ya muda mrefu na maendeleo ya ujuzi, watu wengi zaidi wataondolewa katika umaskini, kwa faida yao wenyewe na jamii wanazoishi na kufanya kazi. Na kwa kuzingatia uwezo mkubwa unasubiri kutolewa katika bara hilo, ni mbinu ya uwekezaji ambayo inaweza kutoa faida kubwa sana. Kuda Mukova ni Mkuu wa Athari na Uendelevu katika Norsad Capital