Mr George Asamani, Managing Director, Sub-Saharan Africa, Project Management Institute (PMI), on Thursday, said skills had proven to be essential driver of Foreign Direct Investment (FDI).
Asamani, in a report released in Lagos, stated that countries on either side of the equator competed intensely FDI.
According to him, FDI; a vote of confidence on the host country, brings the much-needed capital for growth and development, including technology transfer and skills.
He noted that while multinational companies were on the lookout for the next growth market, their decision to invest is driven by a myriad of interests and strategic reasons; some more important than others.
Asamani said the availability and quality of labour were arguably more important than cost.
He noted that some multinationals invested abroad due to their requirements of higher-skilled labour, especially in the pharmaceuticals, electronics, and telecommunications industries.
“When associated with low cost, higher-skilled labour makes certain countries particularly attractive to multinationals in specific sectors.
“The quality of labour is fast becoming one of the most critical drivers of FDI, if not the most,” he said.
According to him, the World Investment Report 2020 and the Global Competitiveness Report 2019 show that countries with higher-skilled and better-educated workforce tend to attract more greenfield FDI projects.
“The global economy needs 25 million new project professionals by 2030 due to economic growth and development, an increase in the number of jobs requiring project management-oriented skills and retirement rates.
“As a result, to close this talent gap, 2.3 million project managers and changemakers will be needed to fill these roles every year to keep up with the demand,” said Asamani.
He added that in sub-Saharan Africa, the market for project management-oriented employment was expected to grow by 40 per cent, the biggest in the world.
“FDI must not solely drive a country’s intent to develop these skills.
“Domestically, the nature of work has rapidly changed during the last decade due to emerging technologies and disruptive forces, such as the fourth industrial revolution, artificial intelligence, and automation.
“Moreover, the skills reset is due in no small part to the pandemic,” he said.
Asamani noted that employers could not solve the skills gap issue alone, and stressed the need for support from educators to build talent pools with skills relevant to current business needs.
He said studies had highlighted mismatches between the skills African students obtained and those required by employers.
He noted that governments and youth-serving Non- Governmental organisations had attempted to address the skills gap through skills development programmes, including entrepreneurship training.
“Still, the assumption that every African youth without a job will be inclined to be an entrepreneur is hardly inclusive.
“The African Development Bank reports that while 10-12 million youths enter the workforce annually in Africa, only three million formal jobs are created.
“The answer may be to focus more on skills-based hiring, which emphasises the specific skills needed for a position rather than educational credentials or prior experience.
“Skills-based hiring can help ensure you fill open positions with the right talent – whether that person comes from outside the organisation or your workforce.
“It can expand your talent pool and help level the playing field by eliminating some of the unconscious biases that can creep into the hiring process,” he said.
