Brussels Briefing 48: Edson Mpyisi "Agri-Business-Led Employment for Youth in African Agriculture: new opportunities"
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The Brussels Development Briefing no. 48 on “Strengthening rural livelihoods in the face of rapid urbanisation in Africa” took place on 20th March 2017 from 14:00 to 18:00, at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels, Room C). This Briefing was co-organised by CTA, BMZ/GIZ, the ACP Secretariat, European Commission (DG DEVCO) and Concord
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Brussels Briefing 48: Edson Mpyisi "Agri-Business-Led Employment for Youth in African Agriculture: new opportunities"
- 1. ENABLE Youth Agribusiness to Empower and Employ Africa’s Youth Edson MPYISI Coordinator, ENABLE Youth African Development Bank Group
- 2. 50% 65% 40% Africa: The Young Continent 420 million “youth” in Africa (15-35 years old) Over 65% are under the age of 35 50% are under 25 years Of over 1 billion Africans today,
- 3. Africa’s Youth Employment: An Asset or A Threat?
- 4. Why Africa’s Youth Unemployment Challenge? It is DIFFICULT TO CONNECT skilled youth to employers • In Africa, the gap between wage jobs and labor market participants widens by ~8 million each year • Policy challenges such as lack of access to credit and inflexible labor markets impede job creation and hiring of young workers • Two-thirds of African youth do not have any secondary education, and those who do are often unprepared for the workforce due to a lack of practical training. 61.4% youth in Sub Saharan Africa lack the level of education expected to make them productive on the job • Education policies do not incentivize demand-driven curricula or support internship and apprenticeship opportunities • Employers cite costs and challenges of identifying talent as a key bottleneck to growth • There is a mismatch between skills supplied and abilities demanded by employers • Youth have low awareness of opportunities and few networks to access them Challenge There are NOT ENOUGH JOBS for Africa’s working- age population Many YOUTH DO NOT HAVE SKILLS demanded by employers DEMAND SUPPLY LINKAGES Description
- 5. Jobs for Youth in Africa (JfYA) Strategy Flagship programs Description provide youth with capital, skills training and mentorship to launch agriculture-based micro enterprises introduce digital literacy, logical thinking, and complex problem- solving curricula in secondary schools develop premier coding academies and match graduates directly with ICT employers. Rural Microenterprise ENABLE Youth Agro-industrialization Pipeline Skills Enhancement Zones Computational Thinking Coding Institutes develop a pipeline of skilled labor for agro-industrial companies. Agriculture Industrial- ization ICT help young African men and women incubate new larger scale agri-businesses and support them in accessing financing for growth of these businesses. develop a skilled workforce aligned to employer needs by creating demand-led training and job placement programs within industrial clusters.
- 6. ENABLE Youth: Agribusiness to empower and employ Africa’s youth USD 15 billion to support enterprise and job creation for youth and women Investing in 30 African countries* 1.50 million agribusiness jobs in the next 5 years 300,000 agribusiness enterprises to be created in Africa 10,000 unemployed graduates (50% women) trained and financially empowered in each country ENABLING ENVIRONMENT Policy to enable decent employment Mindset/Attitude of agriculture as a viable business AGRIBUSINESS INCUBATION Training along agricultural value chain and business development; and attachment/ mentorship FINANCING Crowd in private investment and commercial lending Deploy risk sharing mechanisms Target Intervention Need to leverage USD 0.5 billion per country
- 7. Job Opportunities Along Agricultural Value Chains Input Industry Primary Production First Level Processing Second Level Processing Distribution and Marketing • Input providers • Agro dealers • Mechanization, Equipment supply/hiring • Etc… • Modern farm clusters • Green houses • Livestock • Etc… • Aggregation centers • Cold storage, ripening chambers • Warehousing • Primary processing hubs, • SME value addition • Etc… • Industrial processing • Quality control • Machinery for agro-processing • Etc… • Logistics & transport • Marketing • Packaging & branding • E-Commerce platforms for agro & food products • Wholesale and retail services • Etc…
- 8. Trade and exports Commodity Products Improve the Agricultural Value Chain Farmers Agro Dealers Seed companies Fertilizer companies Agro processors Industrial manufacturers Public Goods support: Roads, Irrigation, R&D, Storage, Price Stabilization, etc. Seasonal Financing Term Financing • De-risk the financial value chain • Unlock commercial financing for agriculture • AFDB to support RMCs to setup RSF • RSF to leverage up to 10x • Systemic change in bank financing for agriculture • Finance for growth of Agribusiness • Financing agriculture as a business/ENABLE Youth Commodity and Agricultural Financing Value Chains Risk sharing mechanism for increased agriculture finance Appropriate Risk Sharing Instruments along the Agricultural Value Chain Guarantees Interest rebates Insurance Technical Assistance
- 9. Successful Agripreneur from DRC! 9 Noel Mulinganya • Youth Agripreneur • High quality cassava flour • From 900Kg – 14 tonnes/ week • From $600 to $10,000/ week
- 10. ENABLE Progress to Date… Over 30 countries have expressed interest to the Bank Approved ENABLE Projects USD 370 million DRC, Nigeria, Sudan Approved ENABLE Components USD 150 million approved Cameroon, Malawi, Zambia ENABLE Under Preparation 15 countries for 2017 and 2018
- 11. AFRICAN DEVELOPMENT BANK GROUP Edson Mpyisi Email: e.mpyisi@afdb.org THANK YOU / MERCI 11
Editor's Notes
- Africa is the most youthful continent on the planet. Its youth are classified as those between the ages of 15 and 35. This category of people currently make up 40% of the continent’s population. Africa has the world’s youngest and fastest growing population. Over 65% are below 35 years, 50% are below 25 years and 40% are below 15 years of age. By 2050, it is expected that 1.7 billion people will be living on the continent. Whereas the proportion of young people is projected to decline worldwide, it is also the only region in the world where the rural population will still be growing. GO TO NEXT SLIDE
- Africa’s rapidly growing youth population could be one of its greatest assets. As at 2015, there were approximately 406 million Africans between the age of 15 and 34. It is expected that in the next 10 years, this demography will increase by at least 25% to half a billion young people by 2025 Today, 35% of Africa’s youth, amounting to 143 million people, are either underemployed, unemployed or inactive. By 2025, there will be 181 million young people without stable employment. Over the next 10 years it is expected that 106 million youth will enter the job market. If harnessed properly, a growing working age population could support increased productivity and stronger economic growth. However… GO TO NEXT SLIDE
- There are three types of interconnected challenges that contribute to youth unemployment On the demand side, there are not enough jobs for Africa’s working-age population. Each year, there are at least 11 million new young entrants into the labour market compared to only 3 million new wage jobs are created. This is mainly because unfortunately economic growth in Africa has not been driven by labor-intensive sectors such as manufacturing. The continent’s manufacturing share of GDP remained constant over the last 30 years: around 12% from 1980 to 2013. On the supply side, youth do not have the appropriate skills needed by employers. Two-thirds of African youth either have no formal education or have only a primary level education. Even where there have been gains in access, quality remains a challenge, leaving graduates unprepared with skills necessary for jobs. Education policies do not incentivize entrepreneurial curricula. Therefore there are challenges in linking potential employers to qualified employees and young people are ill prepared to set up their own businesses and be employers of other young people. GO TO NEXT SLIDE
- An initial set of six flagship program models have been built from best practices of other projects. The programs focus on three sectors with high potential for youth inclusion: agriculture, industrialization, and ICT (Details can be read from the slide itself) These three high priority sectors provide opportunities for job creation across a variety of country contexts and demographic segments, creating a “menu” of project options for RMCs to choose from. Over the next decade, additional flagship programs can be designed and implemented for other sectors
- La stratégie intervient tout au long de la chaine de valeur et se focalisent sur des produit de bases prioritaires selon les zones agro-écologiques. Tel déjà indique par le directeur en côte d’ivoire les produits de bases prioritaire éventuel pourrait être : le manioc, le riz, Le cacao cafe, les noix d’acajou, bétail, et le lait.