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The economic well being of Africa depends on the provision
of jobs to the people on the continent. However, in the
majority of African countries, the government and public
enterprises constitute the main source of jobs for young
men and women coming out of school. With negligible job
creation because of a shrinking public sector, African
graduates increasingly find themselves unemployed, and
in some cases, under-employed. This problem can partially
be resolved by empowering individuals to engage in business,
investments, and other private transactions.
To engender investment and create jobs, laws and legal
institutions in Africa can be used to create an environment
favourable to economic activity, for example, by enforcing
property rights, creating tax advantage for new investments,
and reducing red tape that slows the process of establishing
new businesses. The entire law and justice sector must
function predictably, effectively and transparently to
help reduce the level of risk for both local entrepreneurs
and foreign investors. Indeed, because of weak legal systems
in some African countries and a lack of enforcement of
laws in others, Africa find itself with the lowest percentage
of private businesses and foreign direct investments compared
to developing regions in other parts of the world.
Under this research program, we will examine how to enact
or amend laws that will help improve Africas dismal
record in creating small businesses and attracting Foreign
Direct Investments while at the same time creating jobs
for the unemployed.
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