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COMMONWEALTH YOUTH PROGRAMME AFRICA CENTRE COMMONWEALTH SECRETARIAT Youth Enterprise Development and Youth Employment Experiences and Lessons from Commonwealth Africa ENIWET KAKUWA. AIMS:. The programme aims to provide:. integrated package of low cost easily accessible credit - PowerPoint PPT Presentation
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COMMONWEALTH YOUTH PROGRAMME AFRICA CENTRE
COMMONWEALTH SECRETARIAT
Youth Enterprise Development and Youth Employment Experiences and Lessons from
Commonwealth Africa
ENIWET KAKUWA
AIMS:AIMS:
•integrated package of low cost
•easily accessible credit
•enterprise training
•development to young entrepreneurs
The programme aims to provide:
OBJECTIVE:• To promote the development of sustainable micro enterprise employment among young people• To promote economic growth and national development
• To demonstrate a model of good practice in micro credit for young people• Attracting the interest of donors, governments and other development agencies in youth enterprise development
KEY FEATURES OF BEST PRACTICE INITIATIVES:
• Training provided and loans distributed by NGOs with experience in micro- credit and enterprise
• Group lending and use of group savings as collateral against loans to ensure repayment
•Democratic participation by beneficiaries
•Entrepreneurial development and management training as a prerequisite for participation
•Provision of information and support services
•Business support services to young business entrepreneurs
GROUPS:GROUPS:
THE SAVING CLUB
THE BUSINESS PLAN
THE CONTRACT AND REPORTS
THE LOAN
LOAN DELIVERY
LOAN REPAYMENT
SAVINGS
SUSTAINABILITY
INSTITUTIONAL ARRANGEMENTS
ADVANTAGES OF THE MODEL
• Promotes self- employment option for young people
• Self- supporting
• Entry into the commercial network for young people
• Implementation costs spread over a no. of agencies/ covered under the programme
• Necessary input is political will to commit government to supporting YED programmes through development of policy frameworks and budget allocations
• Applies strict commercial disciplines and leaves all partners better equipped to counter poverty
• CYP encourages governments to create policy and institutional structures and flexibility in legal and banking systems
• CYP provides information, materials, advice and technical assistance
LESSONS FROM THE PAST:LESSONS FROM THE PAST:
• Use an agency with experience in enterprise training or credit delivery
• Implementing agency selected on basis of political neutrality, institutional capacity, commitment, innovativeness, flexibility in accounting for local conditions
• Inappropriate to select government agency to implement programme
• Need to provide orientation training to staff
• Regular consultations and checks with partner NGO necessary to ensure implementation of project is smooth
• Provision of youth exchange activities is essential to facilitate sharing of best practices among young people in running sustainable enterprises
• Regular monitoring and evaluation of programme is needed
CHALLENGES:CHALLENGES:
• Allocation of funds are not proportional to magnitude of youth unemployment
• Little effort at monitoring and evaluation of programmes
• Personnel lack skills, experience and awareness
• Cumbersome loan transactions
• Wider acceptance of potential of youth enterprises needed
SUGGESTIONS:SUGGESTIONS:
•Level of borrower who lacks experience with credit institutions
•Level of financial organizations not pre- disposed to lending to youth
•Level of existing regulations
•Inadequacy of loan- able funds, strict collateral requirements, and negative attitude of some lending institutions towards youth borrower
IMPROVE PERFORMANCE OF YED PROGRAMMES AT FOUR LEVELS-
ADDITIONAL SUGGESTIONS:ADDITIONAL SUGGESTIONS:
• Refine group guarantee mechanism to reduce risk of defaults
• Direct credit to economic activities in which youth are most active
• Mobilizing capital for youth activities
• Incorporating flexible repayments for small loans
• Promotion of YED programme in decentralized manner
• Incorporation of purchasing and/or marketing systems
• Need for National Enterprise Policy in informal sector to enable young people to access credit facilities, infrastructure and so on
• Partnership between private sector/ business community in mobilising resources and providing business support services
•YED policies need to be put in place in Africa to integrate efforts into national economies
• Undertake appropriate legal reforms
•Linking potential youth enterprise programmes with capital by strengthening capacity of major institutions and capacity building
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