Youth and Employment in Africa: A Contribution by the Economic

Commission for Africa

Presentation at the Youth Employment Summit, Alexandria, Egypt

September 2002

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INTRODUCTIONA Few Facts:

Africa’s population is very young. Young people are a potential resource for growth and social

development if gainfully and productively engaged. But they could also be a source of devastating social tension

and conflict if not. The Development of the continent rests squarely on them; it

is through them and by their agency that the vision and noble intentions of the New Partnership for Africa's Development (NePAD) can be developed.

It is through them that Africa can make progress towards the realization of the Millennium Development Goals, especially the goal of halving extreme poverty by 2015.

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Factors driving youth unemployment in Africa

* The Main factors include:a) The generalized lack of employment

opportunities due to the underdevelopment of the economies.

b) high rates of population growth; c) sluggish or stagnant economies; d) small formal private sector; e) The generally poor health of African

Economies.

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Cont’d

f) Low literacy and numeracy rates;

g) Poor quality education

h) Lack of job histories, job-specific skills, and employment-related social capital.

i) Low wages paid.

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Challenges of Expanding Youth Employment

The Challenge of HIV/AIDS The Challenge of Education ReformThe Challenge of Promoting

Employment of young womenThe Challenge of Rural Youth

Unemployment and Underemployment

The Challenge of Promoting Economic Growth

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Socio-economic and Political Context

The Context for action has Changed. It is framed by:

* Resumption of economic growth in Africa;

* The cessation of many conflicts * Regional integration * Democratization* Globalization

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Effects and Consequences in the Absence of Major Initiatives

Drug abusePetty crimeSingle parent familiesPoor HealthWaste of scarce and valuable human capitalSerious social distressSocial exclusion

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Good Practices :What Works

• Ghana – Citi Savings and Loans Ltd.• South Africa -Youth Enterprise Society • Nigeria - National Open Apprenticeship

scheme• ECA - Cisco -Internet Networking

Training

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Harnessing the innovative spirit of disadvantaged, young Ghanaian women:citi savings and loans Ltd

Programme action for the Mitigation of the Social Consequences of Structural Adjustment (PAMSCAD)

Lack of credit and lack of access to credit was identified by the government as one of the factors impeding success.

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Citi – Origin and mode of Operation

Citi began by setting up branches in peri-urban centers of the capital city, Accra.

It developed an innovative approach to interface the non-formal market place with the formal .

It formed peer groups among women, conducted credit education; and worked closely with the “susu” (informal savings and credit associations) operators.

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Citi – innovations and Progress

Two specific financial products were designed, namely, “Adom Bosea” (for mostly foodstuff retailers and the kayayoo- teenage girl porters in the local markets) and “Mmoa Bosea” (mostly for chopbar or food caterers, and dressmakers).

By 1997 Citi had a patronage of about 10,000, with 2000 of them being men!

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Citi’s success is due its:

Providing vocational training out of its profits for the poor illiterate youth;

Organizing them into small groups; Targeting assistance in the form of credit

and enterprise formation to groups; and Providing basic management training. Citi also gives moral support to clients

under its Career Mentoring and Entrepreneurial Development Resources programme.

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Good Practice in Training: Youth Enterprise Society (YES), South Africa

Program was initiated by Ohio State University in 1989 at the instance of South Africa’s youth and their teachers.

It is an extra-mural activity that runs through out the year.

The Mission of YES is ‘to empower young people, through enterprise, to become masters of their own destinies’.

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YES- Mission, Objectives and Reason for Succeeding

To help more and more young people to become business creators rather than simply job seekers’.

To help Participants develop business competencies through a range of activities.

YES has succeeded because it is an active response to a felt and identified need of a community and because of the commitment of all the stakeholders.

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Good Practices that Work: National Open Apprenticeship Scheme in Nigeria

The NOAS is an attempt to link education and training and the workplace.

Managed by the National Directorate of Employment in the Ministry of Labour and Productivity.

NOAS provides vocational education and training to unemployed youth in over 100 occupations.

Unemployed youth and school-leavers are trained for a period of 6 months to 3 years under reputable Master Craftsmen.

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NOAS – Operations so far

Over 600,000 unemployed youth have been trained in over 80 different trades.

Over 400,000 of these started their own micro-enterprises. Nearly 50,000 unemployed youth are currently undergoing training.

School-On-Wheels, an adjunct NOAS programme, is a mobile three month training programme designed to provide vocational training to school-leavers and other unskilled persons in rural areas.

To prevent NOAS graduates from falling back into unemployment, NDE set up a resettlement programme in 1991, to start their own businesses. Close to 6,000 NOAS graduates have benefited from this scheme.

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Cisco Internet Networking Technology Training for African Women

Education and Training is a major activity of the United Nations Economic Commission for Africa (ECA).

The training course follows the established curriculum of the Cisco Networking Academy Program.

The training course involves a fully sponsored six-month residential course.

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ECA - CISCO

In this project,20 to 25 African women are trained each year over a two-year period

In the first training course completed in 2002, 28% of women were under 25.

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Critical areas for discussion: Best opportunities for promoting youth

employment in Africa

Education Reforms and TrainingPromoting Entrepreneurship

among youth Public Works ProgrammeSound Macroeconomic

Management

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PROPOSALS FOR FUTURE ACTI0N

Education and TrainingPrivate Sector and Incentive

Schemes Pressing on expanding on best

practicesCreating an enabling

environmentPolitical Constituency

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Education and Training

Policies must concentrate on creating a system that is capable of inculcating young people’s core skills and competencies.

The Education and Training program should be in such a way that it is capable of inducing or encouraging through a system of regulations and incentives.

The Educational system should focus on entrepreneurship development and governments can further promote youth entrepreneurship by assisting youth entrepreneurs with market intelligence and identification of market opportunities.

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Private sector and Incentive Schemes

Create a system of incentives to encourage the private sector to provide mentoring for young entrepreneurs and training and skills acquisition opportunities for young people. Incentives may include: tax breaks or tax holidays, wage subsidies, preferential purchase agreements, etc.

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Expanding and Building on Best Practices and Experiences

There is no need to reinvent what has worked; countries need to build and expand on what they already have that have worked;

Create a Learning Group on Youth Entrepreneurship within and across countries to share experience and ideas;

Countries need to take ownership of the youth entrepreneurship development programmes if they are to be sustained over the long-run.

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ENABLING ENVIRONMENT

Tax Reforms: tax break; reduction of income and corporate income tax rates, wage subsidies;

Regulatory Reforms – Simplify laws, translate some into local languages - to reduce transactions cost associated with setting up a youth-owned business;

Promote youth entrepreneurship strategically – not ALL but those in which youth have a comparative advantage e.g. ICT, telecommunications.

Promote ACTIVE peace and conflict resolution to reduce unproductive, non-employment creating military expenditures;

Integrate employment creation in PRSP and trade policies

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Political Constituency

These programs will of course not take off unless there is a political constituency for youth employment.

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ECA’s ROLE

Youth important actors in ECA’s activities – e.g. ADFI on ICT, ADFII on HIV/AIDS and ADFIII on Regional Integration;

ADFIV – next year on Governance - will have Focus Groups on four areas of importance to youth: a) Youth, b) Employment, c) HIV/AIDS, and d) Higher Education.

Workshops and meetings on Youth and on Employment; Creating a constituency for Youth and youth issues at

continental ministerial meetings such as the Conference of African Ministers of Education and Conference of African Ministers of Finance and Planning

Finally

THANK YOU