In this sequel to “Next
Generation Report 2020 – What Can Local Authorities Do?” we continue with an
analysis of how our local authorities can play critical roles in assisting the
young people of Zimbabwe with regards to the socio economic challenges that
they face. The New Generation report touched on Employment, which is the focus
of this article.
Issues raised in the report
1. High
levels of unemployment
2. Growth
of the informal sector in the past 10 years
3. Limited
capacity in the country to absorb new
entrants in the job market
4. The
country has failed to create an enabling environment for enterprises to thrive
and create jobs
5. The
country has experienced persistent deindustrialisation and the informalisation
of the economy
6. 24%
of young people in formal employment, 35% in informal employment, 41% dependent
7. Unemployment
more prevalent amongst the female youth
8. Opportunities
to earn a living significantly higher for older youth in urban areas
9. Economic
growth has focussed more on the exploitation
of natural resources than manufacturing
10. Mining
however requires intensive capital outlay
11. This
is more pronounced in the rural areas as they are largely unskilled
12. Agriculture
dominates the labour force activities in the rural areas
13. Manufacturing
is more prevalent in urban areas
14. A
significant number of youths have, over time, resorted to entrepreneurship
15. 61%
of the youth desire to be entrepreneurs
16. With
support, this could be a basis for job creation
17. However,
a number of youths face capital challenges to start their enterprises
18. Growth
of the informal sector points to youthful entrepreneurship and resilience
19. It
could also be pointing to the weakness of support structures designed for unemployed
youths
20. There
is need for careful support if these informal initiatives by youths
21. Lack
of interest in agriculture in Zimbabwe could be due to the politicisation of
land which has limited access to a few politically connected individuals
22. Number
of youths unemployed as they lack the practical skills and work readiness
23. Informal
sector is likely to grow as there are a few stable formal jobs in the
Zimbabwean labour market
Implications for local authorities
What does this mean for our
local authorities? Besides being an employer itself in its various departments
and institutions, the local authority is expected to provide an environment
that facilitates business, employment creation and sustainability. Local authorities
should allow for job creation through a number of initiatives and through the
adoption of ease of doing business approaches from central government. It must be understood that towns and cities
are centres of economic activity that creates and sustains employment. This
then speaks to how our local authorities are governed.
The International Labour
Organisation (ILO) has been active in promoting the building of local
government capacity to create and sustain employment internationally. This has
been viewed important as the local authority is the bedrock of industry. “Local
authorities have increasingly assumed new roles beyond the mere management of
urban services (housing, basic sanitation, education, health etc.). In
particular, as predicted in a World Bank policy paper in the early 1990s, the
entrepreneurial dimension of urban governance, as reflected in the rise of
strategies aimed at income and employment generation, local economic
development and poverty alleviation, has become a prominent feature of the new
urban agenda of local authorities (World Bank, 1991). However, there seems to
be scarce evidence on how, at least at the local level, the managerial and
entrepreneurial agendas meet in order to scale up and consolidate decent work
programmes at the local level” – ILO, 2006.
The New Urban Agenda, adopted
by the UN in 2016, has as its first point the generation of decent work
opportunities for all as a precondition to urban socio economic inclusion and
local economic development. The local authority is expected to create
employment opportunities for all urban workers through active labour market
policies, improving working conditions especially for the poor and informal
economy workers (Vermuyyen, 2016)
Getting Local Authorities to act on Employment
So what can Zimbabwean local
authorities do? In light of the foregoing, local authorities must wake up to
the notion of them having a role to play in employment creation at the local
level.
a. There
is need for councils to step up the Investment Destination drives as this
directly translates to increase in employment levels
b. Councils
must work on a viable and sustainable Ease of Doing Business Framework within
their jurisdictions as part of the incentives for luring investment
c. Recognising
the growth of the informal sector, local authorities should aim to support this
sub sector of the economy by
i.
Creating working space (such as Special Economic
Zones established by Central Government)
ii.
Providing incentives to attract and stimulate
business, such as rent waivers, special rates for utilities and licence fees
iii.
Crafting enabling by laws that allow informal
traders to trade effectively within the confines of legislation
·
The current clean up being done by local
authorities, taking advantage of the COVID19 lockdown, will forever change the
face of urban informal trading. There is need for councils to ensure that these
changes will not perpetuate unemployment but will result in greater socio
economic benefits.
d. Central
government should seriously consider devolving land rights to local government
i.
Mining claims are controlled by central
government, whilst the local government has the burden of management of the
land. Regrettably, non-locals usually have these mining rights without meaningful
benefit by a local authority. If corrected, local government may be able to
control land use to ensure sustainable job creation
ii.
Agricultural land can be parcelled out
apolitically at the local level. Rural District Councils can use land to create employment for its
high number of unskilled youths.
e. Councils
should also adopt, run or otherwise capacitate incubation hubs to enable
budding entrepreneurs to flourish. The entrepreneurship spirit among the youths
should be kept alive.
f.
As lack of skills has also contributed to high
unemployment levels, local authorities should continue to invest meaningfully
into their various Vocational Training Centres, ensuring that their communities
are continually and inclusively equipped for the job market
g. An
updated and relevant Youth Policy will guide the local authority further in
creating jobs for its young people.
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