Reducing the Big Chance of Youth participation in and Joining Conflict:

A Policy Strategy Paper on Youth Employment

Creation and Income Generation in South

Sudan

Author: Boboya James Edimond Barnaba.

Heller School of Social Policy and Management Brandeis University-Boston,

United States of America

January 2015

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Table of Contents

Abstract ...................................................................................................................................................... 2

Introduction ............................................................................................................................................... 3

Literature Review ....................................................................................................................................... 6

Methodology used ..................................................................................................................................... 8

Discussion of Key Indicators on the Political Economy and private sector performance ......................... 9

Figure 1: The Private Sector Development Strategy ........................................................................... 11

Figure 2: How South Sudanese Households derive their livelihoods .................................................. 12

Figure 3: Currently Operating Businesses by Year of Founding ......................................................... 13

Figure 4: Number of Business in South Sudan State Capitals by Sector. ............................................ 14

Figure: 5: Main Reason for Borrowing among Households (per cent) .............................................. 15

Conclusion and recommendations .......................................................................................................... 15

Strategic Policy Recommendations ......................................................................................................... 16

Reference ................................................................................................................................................. 18

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Abstract

Youth unemployment is becoming a highly growing concern in South Sudan. Amid the on-

going crisis in South Sudan, youth continue to hope for brighter future. Long-term

unemployment is worse than poverty as it leads to social exclusion and marginalisation,

especially in urban areas, where a person's social status is linked to his/her job or career. Idle

youth may be a threat to themselves and to the social environment they live in as witnessed in

the on-going war. Youth employment will drive economic growth and reduce poverty and may

also secure social and environmental sustainability and reduce the big chance of youth

participating in and joining conflict.

In response to this situation this policy strategy paper aims to put forward some effective

policy options that can support improving and creating more inclusive jobs. The policy

strategy paper will review some literature from tested and workable policies and programmes

in other countries. Discussion on key indicators on the political economy and private sector

performance will be made.

The paper also offers some strategic recommendations which can be used by policymakers,

governments at different levels; private sector and development agencies to improve the

current situation of youth create jobs and increase inclusive opportunities in the labour

market.

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Introduction

South Sudan declared its political independence in July 9, 2011 when South Sudanese voted

overwhelmingly for separation from the rest of Sudan in an internationally monitored

referendum. South Sudanese fought for centuries against oppression, enslavement, and socio-

cultural, economic and political marginalization. The second half of the twentieth century

witnessed two significant events that changed the history of Sudan in general and South Sudan

in particular. First, the 17-year civil war, which started in 1955 and ended with the Addis

Ababa Agreement in 1972 between the central government and the Southern Sudan Liberation

Movement (SSLM). Second, the 21-year civil war, which begun in 1983 and ended with the

signing of the Comprehensive Peace Agreement (CPA) in Naivasha, Kenya on January 9, 2005

between the National Congress Party (NCP) led government and the Sudan People‟s Liberation

Movement and Army (SPLM/A). In mid-December 2013, South Sudan was again embroiled in

another conflict leading to displacement of more than 1.9 million people, according to the U.N.

Of the total, more than 1.4 million people are internally displaced and nearly 471,700 people

have sought refuge in neighbouring countries (USAID 2014). All these wars had a devastating

impact on people‟s lives, and livelihoods Grima Kebbede (1999). In the short and medium

term, the country faces considerable challenges. The latter concern six key economic areas,

notably: i) political instability and inter-tribal conflicts; ii) poor infrastructure; iii) over

dependence on oil production; iv) strong import dependence with virtually no manufacturing or

commercial agricultural base or services sector; v) extremely low human capital with one of

the world‟s lowest adult literacy levels at 27%, high poverty levels, and troubling health and

sanitation indicators; and vi) a large pastoralist, non-formal economy, with 83% of the

population living in rural areas. While addressing each of the above challenges is a pressing

need, the achievement of internal political stability and peaceful coexistence with Sudan seem

fundamental for the development of the country. South Sudan (African Economic Outlook

2014)

Youth unemployment is becoming a highly growing concern in South Sudan. Amid the

on-going crisis in South Sudan, youth continue to hope for brighter future (UNFPA, 2014).

Youth unemployment poses complex economic, social and moral policy issues in South Sudan

and is among the highest in the world. According to Baseline Household Survey (2009),

unemployment problems bring about the lack of inclusive growth, reduction in the absorption

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of young people into the labour market and a lack of participation of youth in the economy thus

retarding economic growth and causing a high tendency for youth to join the current conflict

and any in the future. Unemployment has a profound consequence for poverty reduction,

equity, social stability and the self-worth of individuals (African Economic Outlook, 2012).

South Sudan population is estimated 9.2 million in 2013 (World Bank, 2014). Only 22% of this

population aged 15 years and above live in rural areas, can read and write whereas 68% have

never attended school. Agriculture is the primary source of food and income for 79% of

households in rural areas. 50.6% South Sudanese live beneath the national poverty line. Only

5% of households earn a living through wages or salaries considered to be basic employment

(SSCS, 2010). Unemployment in South Sudan is linked to factors such as a history of several

wars including the one on-going, insufficient labour demand, lack of skilled labour supply,

absence of a coherent government policy, the lack of a sound legal and regulatory framework,

and a lack of vocational and educational opportunities. These factors limited youth absorption

to the labour market as such the few jobs created are taken by foreigners who come to South

Sudan in search of employment. The current reliant of South Sudan on the oil as a major

economy in South Sudan does not create the needed jobs for youth. Diversifying other sources

of the economy such as agriculture will create and increase employment for youth (African

Economic Outlook, 2012).

According to International Standards the African Youth Charter defines “youth” as

those between the ages of 15 and 35 years (African Youth Charter 2006). This extended

definition of youth provides a good range of adequately making young people transitioning

into adulthood for societies. The characteristics of a youth or young person focus primarily on

physical abilities to engage in labour or other traits such as those who are energetic, engaged,

and have a desire to influence and change existing structures and traditions. Narrowing the

definition of youth in common practice will not be feasible given the near universal application

of the word currently in South Sudanese culture. Furthermore, while the easiest solution would

be to target unmarried young people (which would exclude most of those over the age of 30) it

would also exclude young women who are married at ages as young as 15, which are a

vulnerable group whose engagement is crucial for development.

The situation of youth unemployment in South Sudan can also be linked to the global

context. As known as of 2010, nearly 44% of all people living in the world were under the age

of 25, and 1.75 billion were between the ages of 15-29. Between 2010 and 2050, the world‟s

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youth population, ages 15-24, will become increasingly concentrated in Africa and Asia.

Youth and poverty are inextricably linked bringing concern for youth situation to be addressed.

As of 2010, half of the world‟s young people were surviving on less than $2 a day. The

poorest, least developed countries which South Sudan is part of typically have the largest

proportion of young people in their populations; by 2050, 9 out 10 young people are expected

to be living in developing countries (www.youthpolicy.org). Policies and programs that

connect young people to employment, quality education and health services, help them to

mitigate the risks of becoming involved in violence and civil conflict, and promote youth civic

engagement, leadership and national service are therefore critical for economic growth, as well

as for building stable, productive societies over the long term. It is existence of policies and

programs that will be the principal frames to help addressing the youth situation and

environment. Managers, planners, policy Analysts and researcher‟s alike need to know about

effective youth policies and programs and the public policies designed to bring them to scale.

Long-term unemployment is worse than poverty as it leads to social exclusion and

marginalisation, especially in urban areas, where a person's social status is linked to his/her job

or career. Idle youth may be a threat to themselves and to the social environment they live in as

witnessed in the on-going war. Youth employment will drive economic growth and reduce

poverty and may also secure social and environmental sustainability and reduce the big chance

of youth participating in and joining conflict. The current economic situation in South Sudan

creates a sense of urgency in devising ways to boost opportunities and income generation by

youth. Improving the youth situation is central to the sustainability, economic prosperity and

stability of South Sudan.

In response to this situation this policy strategy paper aims to put forward some

effective policy options that can support improving and creating more inclusive jobs. The

policy strategy paper will review some literature from tested and workable policies and

programmes in other countries. Discussion on key indicators on the political economy and

private sector performance will be made. The reviewed literature will further inform strategic

recommendations which can be used by policymakers, governments at different levels, private

sector and development agencies to improve the current situation of youth , create jobs and

increase inclusive opportunities in the labour market.

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Literature Review

Youth unemployment is a growing and perennial problem in many countries in the world

today. As pointed out by scholars, entrepreneurship promotion policy could be a good way to

improve and increase youth employment and reduce sizeable groups of young women and men

that became detached from the economic mainstream (Curtain, 2000). According to Curtain

promotion of entrepreneurship is necessary as it allows young people to progress and gain

employment and the policy is accepted globally. The policy creates and increases employment

for the young person who owns the business. Many experts believe that this could bring back

the alienated and marginalized youth into the economic mainstream (Curtain, 2000; White and

Kenyon, 2000). Entrepreneurship could help address some of the socio-psychological

problems, reduce the rise in joblessness and provide advice and assistance to local

entrepreneurs about to take up a business venture. Collier and Batty (pp. 534/535. This policy

could be good for South Sudan.

Unemployment of youth can also be addressed by programs such as vocational training

as a tested intervention. Vocational training programs have grown in recent years as the

destabilizing effect of youth unemployment is increasingly realized as a significant challenge

to post-conflict reconstruction (Collier, 2003). In regions where peace is tenuous, large

populations of unemployed youth can contribute to continued instability and threaten the peace

process. Thus, vocational training programs targeting young populations in general, as well as

specific sub-populations such as ex-combatants and the most vulnerable people will be

effective in building required skills for employment. Effective youth vocational and formal

education trainings can provide skills for both agricultural and non-agricultural workers and

improve livelihood opportunities, by increasing employability and self-employment. In Peru,

micro-entrepreneurs programs found that microfinance lending and business trainings were

mutually beneficial (Karlan and Valdivia, 2009). Business skills enabled women to better

utilize their loans and institutional training improved client retention. With relatively few

vocational training opportunities available in South Sudan the policy strategy will provide an

important tool in enabling youth to start their own businesses after gaining skills and manage

their businesses professionally (Di John, 2011). At the same time, formalization will increase

the likelihood that workers are protected by national labour regulations and oversight (Larsson,

2006).

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A study of youth livelihoods in South Sudan found that designing targeted and

appropriate interventions such as provision of loans to entrepreneurs will increase employment.

Provision of targeted loans to youth will mean that youth will not remain idle or in low-skilled

and possibly exploitative jobs. Youth will not waste their potential resource but rather will

support the South Sudan reconstruction and development (From the Ground Up 2007). Another

survey result indicated that South Sudanese growing insecurity is caused by frustration due to

unemployment and lack of regular salaries for those working with the government and if youth

could access loan they could have opted to run their work business that create jobs. Scholars

also pointed that the absence of labour opportunities for urban youth is seen as a direct causal

factor of the increased gang activity in Juba (ODI 2011). Youth employment strategy in South

Sudan needs to consider a policy drawn from the Asian and Brazilian experiences.

In Asia three policies were tested and proven workable. These policies are: 1. Improve

youth situation through up-scaling microfinance institutions 2. Strengthening credit bureaus

and guaranteeing loans to small and medium enterprises and 3. Taxation systems are simplified

to drive forward economic growth and create more employment. While in Brazil the policies

are around programs such as making the taxation system simpler for micro and small firms to

have an effective means of promoting start-ups and bringing unregistered workers into the

formal employment fold (Doing business in Brazil 2008). Lack of access to finance is cited by

the entrepreneurs in small and medium sized businesses in South Sudan as being one of the

constraints on the growth of their enterprises, followed by collateral. Some scholars indicated

that addressing this constraint by putting in place adequate capital could fuel growth of youth

employment (SSPS Strategy, 2012). In Uganda and Kenya promoting information and

communications technology and telecommunication (ICTT) has supported the growth of the

industry and has increased youth employment and has helped drive economic growth

(McKinsey & Co. 2010). The program has increased the growth of local small and medium-

sized enterprises (SMEs). Telecommunication companies provided technical skills to increase

knowledge which enabled job creation for knowledge workers and upgraded the business

environment.

Research indicates that increasing education funding will increase the output in

multiple sectors since labour quality will be improved. For example, in Ghana, researchers

found that even when other factors are held constant, just one additional year of schooling

increased agricultural output by between 2.5 and 5 percent (Psacharopoulos, 1995).

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Recognizing and investing in education in South Sudan could empower the youth and equip

them to increase livelihoods critical for the future and also make youth enter into food

marketing and sustainable rural income generating activities. Non-governmental organizations

(NGOs) and civil society (CSOs) play a critical and diverse set of roles in societal

development. Recently, a renewed focus on the essential contribution of CSOs to a resilient

global system alongside government and business has emerged. “A critical role that civil

society can play is to moderate the impact of the markets” (John J. DeGioia 2013). More

recently the need to preserve and enhance human capital has also been given emphasis. This

policy package primarily relegates a passive role to the state, apart from providing an enabling

environment for the domestic and external private sectors to play their role by exploiting this

economic environment. Employment generation is then seen as a derivative of the overall

economic resuscitation that is expected to take place as the economy restructures. In brief, the

issue of youth unemployment is not only facing Ghana but the world in general, as such, it is

important that it is addressed through a policy.

Methodology used

The strategy paper adopted literature review as data collection method for reviewing, analysing

relevant documents and evaluating them. The Review process looked at relevant literatures that

have been documented by various scholars and authors in the area of youth policy, activities

and programs. The literature was reviewed in accordance with the major themes of the policy

paper. The reviewed documents provided the bases for a detailed contextual analysis and

subsequently proposing the strategic recommendations.

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Discussion of Key Indicators on the Political Economy and

private sector performance

Political and economic governance: Most importantly, good political and economic

governance, based on transparency and accountability, is the key for building a politically and

economically viable state capable of articulating a common vision for national unity, and

providing stability and dividends of peace to its aspiring citizens. The Southern leaders and

intellectuals should learn from the lesson of their counterparts in the North who failed

throughout the post-independence era to articulate a nationally shared vision for equitable

development and democratic management of Sudan's multiple diversities, and to preserve the

unity of the country. The people of South Sudan have shown extraordinary resilience in

emerging from a civil war that lasted over two decades. Those people did not only aspire to see

a new flag raised, or their political leaders ensconced in power. Before everything else, they

wanted to live in peace and dignity. 50.6% of the people of South Sudan are below the poverty

line, with a gnawing gap in poverty levels between classes and within regions. According to

UNDP, recent surveys have shed light on the massive level of poverty and deplorable human

development situation

Private sector, poverty reduction, social protection and labour: Government policy

recognizes the importance of the private sector in developing the country. One of the

government‟s main objectives, as stated in the SSDP 2012-14 is to diversify the economy and

double the amount of non-oil revenue by creating a more conducive business environment for

the private sector. To this end, the regulatory framework and the rule of law are slowly being

enhanced to provide the certainty and predictability the private sector needs to invest and

create jobs.

Basically all formal businesses in South Sudan are small and medium sized enterprises

(SMEs). SMEs dominate all sectors of the economy, including retail and wholesale trade,

construction, hotels and restaurants, and transport and communication. SMEs are highly

diversified in terms of ownership, type of enterprise, number of employees, capital investment

and stage of development. The number of registered businesses in Juba has grown

exponentially from 471 in 2006 to 8 894 in 2010. This situation, however, is by no means

representative of the country, as formal business activity outside the capital remains extremely

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limited (The Business Registry, Ministry of Legal Affairs and Constitutional Development,

Government Data, December 2010). There are numerous constraints for private sector

development in South Sudan: political insecurity, weak government institutions, weak rule of

law and high levels of corruption, lack of physical infrastructure, limited access to land, access

to finance, multiplicity of taxes, lack of input and output markets, and a lack of skilled workers

and well-educated managers. According to the World Bank Doing Business Report, in 2008

the number of new registrations was highest while fewer companies registered in 2009 and

2010, as oil prices fell and uncertainty grew over the outcome of the national elections and the

referendum in January 2011. Most of the newly registered firms are operating in the trading

sector, which offers relatively high returns.

Social protection is a key pillar of the South Sudan Development Plan. Given the

increasing evidence that social protection is an effective policy for poverty alleviation, equity

promotion, resilience building and inclusive growth; the South Sudan Development Plan

(SSDP) identified social protection as a key priority intervention of government. However, the

relevant policy and institutional frameworks to ensure the development of an integrated system

of social protection mechanisms to reach the most vulnerable populations is yet to be finalized

South Sudan (African Economic Outlook 2014). In terms of human development, the social

development indicators of South Sudan are troubling. A substantial share of the population

suffers from poor health and/or lacks the necessary skills to pursue a livelihood.

The Private Sector Development Strategy: The conceptual underpinning of this strategy

Policy Strategy Paper is based upon data obtained that reflected the need to create a

competitive private sector led economy which will bring about youth employment creation and

Income generation In South Sudan it also considered the conditions and circumstances that

currently confront the private sector in South Sudan. Constraints external to business have been

identified as the need to ensure policy, legislation and regulation is in place to create

predictability and to give business confidence and certainty that its actions are legitimate and

that this legitimacy is recognized and protected by the State. There is also a need to improve

access to physical infrastructure. Figure 1 offer the model for Private Sector Development

Strategy

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Figure 1: The Private Sector Development Strategy

Source: South Sudan Development Plan 2011-2013, (August 2011)

Two issues become important as face as Youth Employment Creation and Income Generation

is concerned from figure 1 above. 1. Finance. Access to finance is cited by the entrepreneurs in

small and medium size business community as being the largest constraint on the growth of

their enterprises. The employment of adequate capital to fuel growth is frustrated by the

difficulty of acquiring collateral on which secure it, on its costs, and by a limited of a range

appropriate financial products. The strategy supports the identification development of new

and appropriate financial instruments for small enterprises to improve access to finance as well

as the provision of institutional mechanisms to deliver these. 2. Management and

entrepreneurial Skills: Entrepreneurship is essential for growth and structural change in the

economy. South Sudan does not have a broad and substantive history of private sector

development on which entrepreneurial culture can easily develop. In many countries,

developing management skills comes from exposure to a family business, from exposure to

working in a business or from formal business training. Given the limited penetration and

depth of the private sector in South Sudan and the absence of business training opportunities,

business and entrepreneurial skills can only be acquired through trial and error and at high risk

to the business. A formal process is required to accelerate the acquisition of entrepreneurship

and business management skills and the strategy explores the necessary conditions to facilitate

this.

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Figure 2: How South Sudanese Households derive their livelihoods: Figure 1 suggests that

South Sudan is dominated by small-scale agriculture, and about 78 per cent of livelihoods

come from this source. Wages and salaries account for about 11 per cent of livelihoods –

including those derived from Government. Only around 2 per cent of households derive

incomes from business ownership. Figure 2 supports the contention that to have impact,

support in developing the private sector needs to place a significant focus on the

commercialization of small-scale agriculture which could be a good base for South Sudanese

youth and general households to derive their employment gains and livelihoods.

Sources of Livelihood South Sudan (% 2009)

Source: Statistical Year Book for Southern Sudan (2010)

The years of conflict had a significant and negative impact on the private sector and have

retarded its growth as such it cannot drive employment, although the path to peace appears to

have stimulated a significant upsurge in the birth of new businesses (Figure 3). The Ministry of

Commerce, Industry and Investment plans to take the business registration process to the

selected States under Government‟s private sector development programme. This will give

additional impetus to the rate of formal business formation and hopefully business growth.

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Figure 3: Currently Operating Businesses by Year of Founding

Source: National Statistical Year Book, South Sudan (2010)

Figure 3 above shows the “peace dividend” in numbers of new business created. The years

between 2007 and 2009 suggest an average annual increase of about 40 per cent. Little is

known about the survival rates of these businesses, but the youthful structure of South

Sudanese private sector suggests inexperience in management and the likelihood of

accompanying high rates of failure. In Uganda, research shows that 50 per cent of small

businesses fail in their first five years. Such rates for small business failure are not unusual by

international standards. Analysis of the causes of business failure in South Sudan would

provide useful insight in planning of small business training which are highlighted in this

policy strategy paper.

Businesses structure not offering to young people: The types of business most popular with

South Sudan small business owners are shown in Figure 4 which describes businesses by type

that is located in the ten South Sudan State capitals.

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Figure 4: Number of Business in South Sudan State Capitals by Sector.

Source: Adapted from Southern Sudan Statistics Year Book 2010

Given the above, wholesale and retail businesses dominate, and are twice as numerous as those

in all other sectors. The second largest business category found in South Sudan‟s State capitals

is accommodation and food suppliers. There were, in 2010 a total of 7,333 formal businesses in

the ten state capitals of Southern Sudan, and 84 per cent of these businesses were shops or

restaurants. This business does not create the needed employment and income generation the

many young people would require. “Other” types of business ventures total 1,307. These

include agri-businesses, manufacturing, construction, transport, finance and health based

enterprises. Less than 5 per cent of registered South Sudanese firms are in productive sectors,

such as manufacturing, construction, or mining. This is the reason why this policy strategy is

needed to provide for more avenue of youth employment ventures through its strategic

recommendations.

The low skill level of entrepreneurs: Limited business experience inhibits lending into the

MSME sector. An owner manager may lack experience, entrepreneurial flair or a basic level of

education sufficient to keep business records and as a result be unattractive proposition for

lenders. Foreign banks have chosen to service mostly foreign counterparts (often those who

have a successful track record of borrowing in the home county), while local banks have had

difficulty with the low skill levels in business management of the entrepreneurs approaching

them with demands for finance. See figure 5 below with indication that the main reason for

borrowing among households is for consumption needs. This situation has a significant impact

on the young people who are trying to engage in business creation.

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Figure: 5: Main Reason for Borrowing among Households (per cent)

Source: National Baseline Household Survey, 2009

The Lack of Credit history. A successful track record in borrowing is a positive criterion in

obtaining finance, and the absence of it is a major constraint. As figure 5 above confirms, few

households can point to an established borrowing record for investment purposes which could

have aided employment and income generation for young people. Inadequate record keeping

compounds this challenge. The sub-national Juba based Doing Business National Series, 2011

survey points out that the launch of a credit referencing information bureau would make secure

lending easier and this could benefit young people. Greater information sharing through credit

bureaus has been associated with higher bank profitability and lower bank risk.

Conclusion and recommendations

The rationale for policymakers, governments at different levels, private sector and

development agencies to improve the current situation of youth, create jobs and increase

inclusive opportunities in the labour market is simple: businesses that can strategically source,

manage, and create needed talent for the long term will be able to seize emerging economic

opportunities, while those that fail to address this challenge will be outperformed by their

competitors. Individuals who are given access to learning opportunities and who can cultivate

the right skills will thrive in the Labor market and contribute to the organizations that employ

them. Implementing the proposed strategic recommendations highlighted in this strategy paper

will results in real youth situation change. Outcome of implementing the proposed

recommendations will also make young people‟s ability to succeed in the world of work.

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Strategic Policy Recommendations

In order to support development initiatives for improving and creating more inclusive youth

growth and employment in South Sudan the policy strategy paper suggests the following seven

(7) recommendations. The recommendations can be used by policymakers, government

institutions at different levels, private sector or development agencies.

Policy recommendation 1: The social fabric among different youth groups in South Sudan

needs to be addressed through creating a platform for dialogue between different youth groups.

Creating a platform for youth will enable youth to form and join business ventures that will

create some sense of sustained business environment. Addressing the social fabric among

different youth groups will have a significant impact on youth interactions considering the

current situation and ensure employment and promoting of their common vision. Youth

dialogue is dependent on political and social will from both youth and government and also

availability of funding from either development agencies or government.

Policy recommendation 2: There is a need to develop a national action plan on youth

employment. The national action plan can be initiated by government with participation and

support from development employment creation stakeholders. This should be done while

strengthening youth employment networks at state and national levels. The action plan should

focus on future entrepreneurial generations by scaling up youth entrepreneurship and

encouraging the development and success of young entrepreneurs and this will drive youth to

participant in conflicts. Putting in place the action plan requires some funding allocation which

the government needs to bear.

Policy recommendation 3:The government, private sector players and civil society should

work together closely to ensure that skills development programmes have exit strategies

linking young people to employment, further learning or self-employment. Skills development

programmes should be made more inclusive so that youth can benefit from economic growth

and job creation. The government should encourage the development and expansion of

entrepreneurship-related trainings such as the one managed by Norwegian People Aid,

Episcopal Church of Sudan in Yei and the Multi-Purpose Training Center (MTC) in Juba.

Improving the capacity of the vocational training institutions will ensure quality skills

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programs in which learners will acquire the technical skills needed to run a business. In order

for it to happen, the government and development agencies need to fund it.

Policy recommendation 4: The Government of South Sudan and the private sector should

adopt a policy programme that targets the mobilization of deposits, granting loans and

providing financial services. The financial services can target small businesses operated by

disadvantaged youth but this has to be inclusive in the informal sector both in Juba and in the

states. Funds should be set aside and emphasis placed on strengthening credit bureaus and

guaranteeing loans to small and medium.

Policy recommendation 5: Local economic development will ensure that rural youth will get

employment in rural areas and reduce rural- urban migration. This also has to go with food

security and small holder‟s employment. Realizing local development will cost some money

and the government needs to budget for it.

Policy recommendation 6: The government should consider subsidizing the agriculture

production cost as this is important to ensure young farmers increase food production for

market. The subsidies can be through provision of improved seeds, agricultural tools, access to

market and also a reduction in the number of taxes farmers pay. The government ensuring and

using subsidy as a policy program will result in an increase in the rate of youth employment in

the agriculture sector. Government needs to be ready to accept that subsidizing will cost so loss

of direct income to it but will be paid back once the youth become employed and agricultural

production increases with a high supply to different markets.

Policy recommendation 7: The government and development agencies should increase

educational success rates by providing needed resources to poorly resourced schools;

improving the quality of teaching; and providing supplementary support to students who

perform poorly. Government partnership with relevant partners should promote access to

education through mobilizing scholarships and bursary schemes for the youth to enable them to

access education. There should be consideration of career guidance, with particular emphasis

on the promotion of scarce skills. This will increase in the opportunities for out-of-school

youth to complete education that will enable them to compete in the open labour market.

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