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ENABLE Youth Agribusiness to Empower and Employ
Africa’s Youth
Edson MPYISICoordinator, ENABLE Youth
African Development Bank Group
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,
Africa’s Youth Employment: An Asset or A Threat?
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
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 schoolsdevelop 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.
Agric
ultu
reIn
dust
rial-
izatio
nIC
T
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.
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 ENVIRONMENTPolicy 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
FINANCINGCrowd in private investment and commercial lendingDeploy risk sharing mechanisms
Target Intervention
Need to leverage USD 0.5 billion
per country
Job Opportunities Along Agricultural Value Chains
Input Industry
Primary Productio
n
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…
Tradeand exports
Commodity ProductsImprove 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 ChainsRisk 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!
Noel Mulinganya • Youth Agripreneur • High quality cassava flour • From 900Kg – 14 tonnes/
week• From $600 to $10,000/
week
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
