Workers, employers and governments in Africa broadly agree that trade and investment need to be accompanied by employment policies and social dialogue if their benefits are to translate into better employment outcomes, according to new research by the International Labour Organization (ILO) in five African countries.
The convergence is significant because the three groups bring different perspectives and priorities to trade and labour policy. Their broad agreement strengthens the case for integrating employment considerations and social dialogue into decisions on trade and investment as African economies deepen regional and global economic integration.
The report, Trade, Investment and Decent Work in Africa, draws on surveys and consultations with government representatives, employers' and workers' organizations and civil society in Ghana, Kenya, Mozambique, South Africa and Uganda.
Employment policies emerge as a particularly strong area of agreement. They are identified among the most effective policies for achieving inclusive trade benefits by 95 per cent of government respondents, 93 per cent of workers' organizations and 91 per cent of employers' associations. Among a list of further options, social protection and education and training also receive strong support, although the priorities vary among the three groups.
"Africa has a major opportunity to turn expanding trade and regional integration into more and better jobs. What is particularly significant is the broad agreement among governments, employers and workers that trade policy cannot work in isolation. Employment policies and meaningful social dialogue can help ensure that growing trade and investment translate into opportunities that benefit both workers and enterprises," said Fanfan Rwanyindo Kayirangwa, ILO Regional Director for Africa.
Trade brings opportunities and challenges
The findings come as trade flows are expected to grow further across Africa, particularly through implementation of the African Continental Free Trade Area (AfCFTA). International trade already accounts for an average of 60 per cent of GDP and supports around 12 per cent of employment across the continent.
The report finds that stakeholders see considerable potential for trade to contribute to employment and enterprise development. Around three quarters of those surveyed identify job creation as a primary benefit, while respondents also point to increased market access, skills development, technological advancement and productivity gains.
At the same time, respondents identify risks for both the quantity and quality of jobs. Employment ranks among their main concerns, reflecting the potential for trade to both create and displace jobs, while respondents also raise concerns about informality, low wages and poor working conditions.
These concerns are particularly relevant in African labour markets, where informal employment accounts for more than 85 per cent of total employment on average and remains widespread in export-oriented agricultural supply chains.
The report also examines the role of labour provisions in trade and investment arrangements. Of the 50 trade agreements involving African countries that are in force and reported to the World Trade Organization, 15 include references to such provisions. More than 80 per cent of stakeholders surveyed identify improved labour standards and stronger social dialogue among their main benefits.
The findings highlight the importance of involving employers' and workers' organizations in trade and investment policymaking. Their practical knowledge of skills needs, working conditions, barriers to international markets and challenges in meeting standards can help inform better-targeted policies and strengthen implementation and accountability.
The report concludes that structured, predictable and well-informed social dialogue, alongside employment, skills and social protection policies, can help countries translate expanding trade and regional integration into more widely shared employment and enterprise opportunities.
