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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. 1. ENABLE Youth Agribusiness to Empower and Employ Africa’s Youth Edson MPYISI Coordinator, ENABLE Youth African Development Bank Group
  2. 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. 3. Africa’s Youth Employment: An Asset or A Threat?
  4. 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. 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. 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. 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. 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. 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. 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