How agri- SMEs can support youth to earn livelihood on limited funds

Young people in Africa, especially the Gen-Zs, remain jobless even after graduating with formal education.

They face immense hurdles trying to be gainfully employed, from limited job creation by the market, insufficient access to knowledge and skills, a lack of information and unfriendly policies that work against them.

The challenge is further exacerbated by factors such as rural-urban migration in search of white-collar jobs, which are few.

Young people also tend to avoid working in the agriculture sector due to the perception that the jobs are low-status and less prestigious career choices than other industries like technology or finance.

Investing in agriculture-based small and medium enterprises (agri-SMEs) that support youths with limited financial means is essential to improve incomes and livelihoods and importantly create jobs, in particular for this category of youth.

Agri-SMEs are often the engines of African economies and are present in every step of the agricultural value chain. With the right investment and support, they can transform food systems, enhance small-scale farmers’ resilience to shocks, pivot their business models in response to crises, innovate and most importantly generate employment opportunities for young people in rural and urban areas.

Through agri-SMEs, the youth with limited financial means can be gainfully employed. Agri-SMEs are labour-intensive and ultimately unlock opportunities along the value supply chain, creating jobs.

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The SMEs are in a better position to attract donor investments, which in turn may unlock their potential to access financial and credit facilities from other financiers because they are more organised and are formally registered.

This would support the enterprises in upscaling and offering young people jobs. These SMEs are also better placed to offer on-the-job technical training and mentorship opportunities to the youth through partnerships.

Young people, especially those with limited financial means also have limited involvement in policy dialogue and formulation. Too often, their voices are not heard during the policymaking process, and so their complex and multifaceted needs are not met.

The policies often fail to account for the diversity and creativity of youth and do not provide them with effective support. Agri-SMEs can provide these young people with lobbying platforms and resources to be included in policy formulation, and for collective action to ensure that their voices are heard at the planning and implementation levels.

Agri SMEs are also well positioned to ensure that the youth earning a living from agriculture and the entire value supply chain have access to the right and current information on best practices, marketing opportunities, innovation and sustainable practices to respond to the needs of a modern agricultural sector.