Government, AfDB sign K7.5 billion youth loan

Government through the Ministry of Finance, Economic Planning and Development has signed a loan agreement with the African Development Bank (AfDB) amounting to $10.5 million (about K7.5 billion) for Jobs for Youth Project.

The two parties have also signed a protocol agreement for a grant amounting to $1.68 million (about K1.2 billion) for the same project.

Speaking, Wednesday during the signing ceremony in Lilongwe, Minister of Finance, Goodall Gondwe, said the loan will help in easing the problem of unemployment among the youth.

“The youth’s lack of relevant qualifications and skills has been noted by the private sector to be the hindrance to increasing productivity. There is a huge gap of skilled artisans, master craftsmen and technicians required by various industries,” Gondwe said.

He said, as such, government approached the AfDB for financial assistance that would help to economically empower the youth for improved employability in decent work and sustainable entrepreneurship in Malawi.

“I, of course, take note that the need in comparison to the resources available in this project is huge. However, some of the outcome of this project will inform policy decisions and development of further interventions,” Gondwe said.

The project is expected to create an estimated 17,000 jobs for the youth of Malawi.

AfDB Resident Representative, Andrew Mwaba, said the project will implement strategies that will improve sustainable employment for the youth.

“The jobs for the Youth Project is part of the response of the AfDB Group to support the government’s efforts to address the challenges faced by the youth in the job market and the private sector, including the lack of access to skills and market information, the lack of access to finance and the low level of employment opportunities for the youth in the traditional sectors,” Mwaba said.

The project will be implemented over four years and will be coordinated through the Ministry of Labour, Youth Sports and Manpower Development.

Mwaba said the project will build on the ongoing $41 million Higher Education Science and Technology Project that was designed to support universities and vocational technical training centres.