Insufficient financial support for budding business owners fueling jobless rate among youth.
Unemployment Crisis among Youth: A Perspective from Ghana's Young Entrepreneurs
Young jobless individuals in the country and across Africa are grappling with a rising unemployment rate, and it's all thanks to a lack of financial support for youth startup businesses, according to Sheriff Ghalil, the Ghana Chamber of Young Entrepreneurs contact person. This unfortunate reality is far from new, but it's been significantly worsened by the economic repercussions of the ongoing COVID-19 pandemic.
During a virtual discussion hosted by the Policy Initiative for Economic Development Africa, Ghalil expressed his concerns over the labeling of young people as high-risk partners, making it challenging for them to receive investments. He emphasized the urgent need to rethink our approach to aiding youth, especially in light of the economic turmoil brought on in part by the pandemic.
According to the World Bank's recent report, African youth face a dire situation. Companies are cutting back on support from their home countries, leading to layoffs and diminished job opportunities. In response, many young individuals see entrepreneurship as the only viable option for achieving financial stability. In the past three years, a significant increase in young entrepreneurship has been observed, either out of necessity or choice.
However, Ghalil highlighted the need for better support for these ventures, starting with increased political will and better implementation of government-backed initiatives. Education and training for young entrepreneurs are also vital, as numerous new business owners lack the necessary experience and technical knowledge to run successful operations. In order to create more employment opportunities, Ghalil encourages stakeholders to organize workshops to help equip young entrepreneurs with the essential skills, understanding, and risk management expertise they require.
Additionally, Ghalil urges policymakers to develop and implement supportive policies that make it easier for young people to navigate regulatory guidelines, registration processes, and access business support services. By establishing such an environment, we will be able to encourage the growth of youth-led businesses, eventually addressing the unemployment issue in the region.
Now, let's delve into various initiatives across Africa aimed at supporting youth startup businesses and addressing historically high rates of youth unemployment. This section incorporates enrichment data sparingly to provide further insight into the issue:
1. Startup Africa Roadtrip: A free initiative in East Africa encouraging collaboration, knowledge sharing, and providing a platform for young founders to develop and scale their business ideas by connecting them with local and international resources.
2. African Union Youth Startup Programme: Empowering young African innovators by supporting startups working on solutions in health, education, and food security, offering sponsored booths at trade fairs, access to matchmaking with investors, mentorship, and the possibility of funding and recognition.
3. wAtt-boost – Youth Power Start Up in Africa: A joint effort from the RES4Africa Foundation, Strathmore University, and Enel Foundation that supports entrepreneurs in the renewable energy sector. Selected participants receive training, mentorship, networking, and fundraising assistance with an emphasis on technical and business development.
4. Llama Impact Accelerator 2025: A program targeting AI-focused startups in Nigeria, Kenya, South Africa, and Senegal, aiming to drive AI solutions in key areas for post-pandemic recovery, such as health, education, agriculture, public services, and security. Selected startups receive technical assistance, cloud computing access, and strategic guidance to align their innovations with national priorities.
These initiatives are especially crucial in the aftermath of the COVID-19 pandemic as they intend to:
- Foster innovation and resilience among youth entrepreneurs
- Address sector-specific challenges that have intensified
- Bridge the unemployment gap through training, mentorship, and access to funding and markets
- Enhance digital skills and remote capabilities by focusing on AI and digital transformation, critical for adapting to a post-pandemic economy.
Together, these programs enable young Africans to navigate challenges and contribute to sustainable economic growth and job creation. The empowerment of young entrepreneurs offers a promising path towards a brighter, more prosperous future.
- The unemployment crisis among Ghana's youth is exacerbated by a lack of financial support for youth startup businesses, as highlighted by Sheriff Ghalil, the Ghana Chamber of Young Entrepreneurs contact person.
- During a virtual discussion, Ghalil expressed concern over the labeling of young people as high-risk partners, making it difficult for them to receive investments and emphasized the need for rethinking the approach to aiding youth.
- According to the World Bank's recent report, African youth face a dire situation, with layoffs and diminished job opportunities due to companies cutting back on support from their home countries.
- In response, many young individuals in Ghana see entrepreneurship as the only viable option for achieving financial stability, leading to a significant increase in young entrepreneurship in the past three years.
- To address the issue, Ghalil encourages better support for youth-led businesses, including increased political will, improved implementation of government-backed initiatives, and education and training for young entrepreneurs in essential skills, understanding, and risk management.
- Policymakers are urged to develop and implement supportive policies, such as those offered by initiatives like Startup Africa Roadtrip, African Union Youth Startup Programme, wAtt-boost – Youth Power Start Up in Africa, and Llama Impact Accelerator 2025, which aim to foster innovation, bridge the unemployment gap, and enhance digital skills among young Africans.
