Introduction

Africa has made great strides in protecting labour laws, keeping them heavily protected. Africa is a hub for global investment. However, the labour laws may be so strict as to restrict and dissuade global investors. Due to this, some of Africa’s largest economies (e.g. South Africa, Egypt, Nigeria, etc.) have severely lagged behind in economic growth as compared to other global nations.

Africa holds 54 jurisdictions, each with their own strict labour regulations. As such, it is difficult to keep consistency with regards to investment across these nations, and international companies may be hesitant to invest as minor cross-border discrepancies can incur fines and other penalties.

North Africa, as a member of the MENA, has issues with extremely strict labour laws that are not revisited to keep in pace with changing economic and market pressure. For example, companies in Algeria spend more than 25% of their profits on labour taxes, which severely disincentivizes global investments. Furthermore, in greater Africa, extreme protectionist policies prevent the cross-border trade and investment which has been proven hugely profitable in economic unions such as the EU. This leads to a further issue. Without a greater, cheaper and easier flow of labour and resources between countries, developing economies rely on primary commodities for growth, which has continuously been proven damaging to growth. Clearly, greater exchange of resources and brainpower would enable diversification and greater focus on secondary or even more advanced resources which would be hugely fruitful for the continent as a whole. 

It is important to maintain transparent, honest governance as well in African nations to promote greater global investment. Global investors may be hesitant to pay such steep corporation taxes in nations where corruption is rampant or where their rights are not guaranteed. 

Per the World Economic Forum, over 60% of the continent’s population is below 25. Keeping a major issue in standing are child labour issues. Though the International Labour Organization’s Convention No. 182 on the Worst Forms of Child Labour has been universally ratified, and strict, formal legal structures have been developed to protect children, a lack of informal, ground-up enforcement has prevented these structures from taking the necessary effect. According to the ILO, at current, 72.1 million children in Africa are estimated to take part in child labour, with over 35 million of those in hazardous labour. It is crucial to eliminate such unregulated child labour, not just for human rights concerns, but also to invest in human capital and Africa’s upcoming young generation. An educated youth sparks entrepreneurship, which is crucial to boosting a developing economy. Child labour keeps these young people out of school and prevents the instilling of financial confidence and competence in advanced fields necessary for economic development e.g. engineering, finance, and the technological sciences.

Conclusion

Keeping pace with changing market conditions and continuing to restructure protective regulations, preferably in a manner cooperative with other African nations, will allow Africa’s economies to prosper to a greater degree. Furthermore, greater education of the youth will promote entrepreneurship and confidence so crucial to future development.