Emphasising innovation in agriculture and entrepreneurship could solve youth underemployment in Rwanda, experts at the recent African Development Bank (AfDB) Annual Meetings have said.
Emphasising innovation in agriculture and entrepreneurship could solve youth underemployment in Rwanda, experts at the recent African Development Bank (AfDB) Annual Meetings have said.
In a review of some of the recommendations for various sectors, The New Times shows that youth unemployment was a hot topic at the meetings in Kigali last week.
The overwhelming question facing politicians and bankers was how to best address the lack of full-time, stable and well paying jobs available for young Africans.
About 60 per cent of Rwandans under 35 are underemployed, doing odd jobs that do not meet their qualifications, national statistics show.
Two per cent of young Rwandans are completely unemployed.
In May 2013, government set a target of creating 200,000 new jobs annually as part of the second Economic Development and Poverty Reduction Strategy.
Currently, about 100,000 Rwandans become eligible to work each year. According to the Youth Employment Systems web site, only one per cent of this group is generally successful in finding a job.
The burden
Kagenza Rumongi, of Youth Employment Systems, said underemployment affects youth of all kinds — those who have graduated from secondary school, those who live in rural areas and especially women, who are more likely than young men to be unemployed because of social pressures to stay home and have a family.
Only 49.2 per cent of students were enrolled in secondary education in 2012, according to AfDB’s 2014 Economic Outlook for Rwanda.
The government has said it will focus on skills development and ICT training to create the kinds of employees the private sector needs. The private sector employs 90 per cent of Rwandans.
The government will also focus on stimulating entrepreneurship and access to finance, and employment services for job seekers.
Ndori Semana, 36, a former civil servant who has been unemployed for two years, said his biggest job-hunting challenge has been finding work that matches his diploma qualification.
Semana has been sitting job interviews without success.
"I’m not too sure I will get a job,” Semana said. "Maybe in two or three months.”
Skills crucial
Jerome Gasana, director-general of the Workforce Development Authority, emphasised the importance of having skills that are transferable within the East African Community and beyond.
"We have to ensure that Rwandan students or trainees can compete on the international market,” Gasana said.
Rumongi said there are several key industries that could provide jobs for 16 to 35-year olds: agriculture, service and, as it grows, manufacturing.
Agriculture is by far Rwanda’s biggest industry. Rumongi would like to see a move from subsistence farming to developing large-scale agricultural enterprises that would create stable, higher-paying jobs.
"I’m not talking about the traditional agriculture. Groups of youth can come together and engage in join land ownership. With the power of being in a group, they would get some financing,” he said.
But for innovation in agriculture to occur, Rumongi said, financial institutions need to do a better job of extending capital to the young people.
"Many microfinance institutions are not lending to the youth adequately and banks are hesitant to support them. The youth lack funding to scale up their business,” Rumongi said.
But in the throes of unemployment, even starting a business can seem daunting. It can be hard enough to put food on the table, never mind growing a small business.
"If you’re unemployed you’re not able to take on your responsibilities,” Semana said.