Foreign direct investment won’t create enough jobs to resolve SA’s unemployment crisis

3 years ago 1

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When Amazon’s entry into South Africa made news last year there was excitement about the potential jobs that would come from the world’s biggest retailer’s foreign direct investment (FDI).

But Amazon’s announcement that it is cutting 18 000 jobs globally has doused some of that euphoria, once again underlining the need for South Africa to drive its own job growth.

Amazon said affected workers would be informed of their situation from 18 January.

Amazon said it had “hired rapidly” during the Covid-19 crisis to meet the increased demand for deliveries, doubling its staff globally over the past two years. It had more than a million employees by the end

of last year. However, it said the economic outlook was uncertain at the moment.

The hiring spree also applied to South Africa, with BusinessTech reporting in October the e-commerce giant had more than 200 positions available in the country.

Unemployment in South Africa is at 32.9%.