Product details

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Abstract

Africa's fast increasing employment gap had become a major predicament for economists, policymakers and the unemployed. The problem intensified with rapidly rising youth population who were faced with lack of formal sector jobs. By 2035, Africa was expected to add more people to the workforce annually than world combined. In such a scenario, the continent would have to generate over 18 million new jobs annually. Gig economy had been hailed as the prerequisite for fulfillment of future employment needs in Africa. The African people had started undertaking multiple gigs using technology on a large scale in the informal sector. Moreover, the rapid spread of gig work was facilitated by internet proliferation and establishment of digital platforms namely, Jumia, TaskRabbit, Lynk and Upwork which had provided thousands of jobs to African youth in multiple categories. These digital platforms had become pioneers of inclusion, formalisation and economic development. Consequently, the gig economy was integrated in the informal sector of South African market, as the preferred way of transacting business. However, gig work in the informal sector characteristically offered low incomes with long working hours. Besides, the workers did not have benefit of health insurance or company based pension schemes. The African governments now had the onus of shaping Africa's gig economy towards progressive inclusion of informal enterprises into the formal economy for sustainable employment growth. In the backdrop of various loopholes pervading in the existing system, could the gig economy be classified as a potential employment generator for Africa?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Africa

About

Abstract

Africa's fast increasing employment gap had become a major predicament for economists, policymakers and the unemployed. The problem intensified with rapidly rising youth population who were faced with lack of formal sector jobs. By 2035, Africa was expected to add more people to the workforce annually than world combined. In such a scenario, the continent would have to generate over 18 million new jobs annually. Gig economy had been hailed as the prerequisite for fulfillment of future employment needs in Africa. The African people had started undertaking multiple gigs using technology on a large scale in the informal sector. Moreover, the rapid spread of gig work was facilitated by internet proliferation and establishment of digital platforms namely, Jumia, TaskRabbit, Lynk and Upwork which had provided thousands of jobs to African youth in multiple categories. These digital platforms had become pioneers of inclusion, formalisation and economic development. Consequently, the gig economy was integrated in the informal sector of South African market, as the preferred way of transacting business. However, gig work in the informal sector characteristically offered low incomes with long working hours. Besides, the workers did not have benefit of health insurance or company based pension schemes. The African governments now had the onus of shaping Africa's gig economy towards progressive inclusion of informal enterprises into the formal economy for sustainable employment growth. In the backdrop of various loopholes pervading in the existing system, could the gig economy be classified as a potential employment generator for Africa?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Africa

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