Yes they can, if they have permission to do so.
If they have permissions then they will see the "Users" menu item in the Admin menu, otherwise they will not.
To Grant a User Permissions to Create Additional User Accounts:
Login to the Organisation, and Edit the User that you want to grant the permission to.
Select the 'Permissions' tab:
Click on the 'Organisation Manager' to grant the permissions:
Click SAVE to save the changes.