News / Economic Divide

Africa to face an unemployment crisis by 2040?

Friday, 04 August 2017 6:16 AM [ Last Update: Friday, 04 August 2017 6:17 AM ]

Africa's unemployment crisis

Africa, the world’s second largest continent. Home to more than one point two billion people. From mining to agriculture and tourism, most parts of the resource-rich continent have enormous potential for economic growth.

Yet, except for a handful of countries, the rest are going through dire financial straits. Africa’s economy plays an important role in global economy. For starters, it trades with other major economies like china and India. But the continent’s future looks bleak.

A recent study conducted has found that parts of Africa could face a massive unemployment crisis by 2040. The research predicted a shortfall of some 50 million jobs across much of the continent, warning about its dire consequences on global economy.

Former UK cabinet minister who works at the institute says:“This should serve as a serious wake up call for all. This daunting figure will not only have profound consequences for the whole of Africa and its people, but the impact on the global economy could be catastrophic.”

A majority of countries in Africa are hugely reliant on foreign aid with some western countries particularly the United States being among key contributors. Washington has been funneling billions of dollars in contributions to dozens of African countries for over six decades. Only In 2015, the US provided more than eight billion dollars in assistance to 47 sub-Saharan countries.

However, decades-long aid and loans from the US and other Western countries have left Africa grappled with debt and addicted to handouts. Moreover, foreign aid has resulted in increasing levels of corruption in the continent. According to the African Union, an estimated 25 percent of the continent’s GDP which amounts to nearly 150 billion dollars is lost due to corruption. A 2016 report by the United Nation’s Economic Commission for Africa cited the blind eye often turned to corruptors by Western countries, as one of the major elements of corruption in Africa.

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