The skyrocketing unemployment among African youths will soon be a thing of the past after the injection of a USD 3 billion financial assistance from the Danish government to the continent. The five key areas of the Danish government driven Africa Commission are hoped to be able to rejuvenate African economies, promote sustainable and viable futures and create employment. More jobs for African youth and increased private sector investments are the best way to help Africa out of its economic problems, according to the Africa Commission, which released its first full report earlier in the week. The Africa Commission is mobilizing loans worth USD 3 billion to create job opportunities which address Africa’s challenge of unemployment specifically among the youth. This is according to the commission’s report launched at the body’s Headquarters in Copenhagen. The initiative will create 40,000 new jobs and 20,000 new businesses on the continent. According to the International Labour Organization (ILO), the continent’s youth make up about 60 % of the unemployed. The funds, according to the report, will be mobilized through the creation of an African Guarantee Fund in partnership with the African Development Bank (ADB). It also states that a new consensus for international development cooperation with Africa should be directed towards private sector-led growth, which creates jobs. “The lack of employment opportunities for the youth is one of the challenges on the continent and is not reflected in the current international development focus,” said the President of Tanzania and member of the African Commission, Jakaya Kikwete in the report. The report also indicates that the Commission will also address the issue of investment finance for Small and Medium Scale Enterprises (SMEs), by providing a USD 500 million fund to be managed by the African Development Bank. “SMEs and entrepreneurs lack access to financing for investments and the economic crisis has worsened the situation. That is why we want to establish the “African Guarantee Facility” with the aim of mobilizing loans for USD 3 billion,” said the President of the African Development Bank, Dr. Donald Kaberuka. “It will be the most innovative initiative launched in Africa in decades, and we are convinced that it will create millions of productive and decent jobs.” Dr. Kaberuka is a member of the Commission and will head the establishment of the fund. He also observed that the fund can open up for about $ 20 billion in investments, equaling 1.5% of Africa’s Growth Domestic Product (GDP). The initiative will be implemented in partnership with the ILO and Youth Employment Network (a partnership between the UN, ILO and World Bank). Ends
