By Kingsley Jassi:
Minister of Finance Joseph Mwanamvekha has said the economy requires drastic changes to address deepening poverty driven by youth unemployment, as a survey shows young people continue to be alienated from meaningful economic activities.
Speaking at a youth pre-budget consultation meeting organised by the National Youth Council of Malawi in Lilongwe on Monday, Mwanamvekha acknowledged low investor confidence has led to insufficient job creation, with only 30,000 jobs generated annually against 270,000 young people entering the labour market.
A presentation during the meeting highlighted worrying findings showing several young people trek to urban areas in search of opportunities but remain stranded and trapped in poverty.
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Mwanamvekha promised deliberate measures, citing K100 million youth-oriented funding per constituency annually as a start.
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He blamed high interest rates for deterring potential entrepreneurs and investors from accessing capital, adding that the forex situation has crippled private sector productivity.
“But I have good news for you; things are improving. I’m sure you have followed what is happening in the macroeconomic indicators as inflation is now going down,” Mwanamvekha told the audience.
He said there was gradual accumulation of foreign reserves, although the level remains low, expressing hope the situation would improve soon.
“There is a lot that we are doing, the changes we have made and very soon this problem will be dealt with,” he said.
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Mwanamvekha disclosed that his recent trip to Arab countries had unlocked tremendous aid and investment opportunities and follow-up discussions were ongoing. He promised the youth would soon have opportunities to work in those countries as government ensures a proper labour export system that safeguards them from exploitation.
NYCOM Executive Director Rex Chapota said while they pushed for increased funding of the National Youth Innovation Fund to spur creation and scaling of youth enterprises, there were discussions with investors and donors to source financing to help commercialize key innovations the youth have developed.
On display during the event were products developed by selected enterprises with potential to solve economic challenges, including a solar power generator that has exported some units to Zambia. Limited capital, taxation policy and market access were cited as limiting factors to scaling up such innovations.
