Why we must tackle youth unemployment urgently

Unemployment presents a challenge for global economic growth and individual countries’ advancement. Lack of jobs for the youth has been cited as one of the causes of radicalisation, with idle youths turning to terrorism for a sense of identity and financial security. In Africa especially, unemployment and underemployment are major obstacles to full utilisation of human capital resources, significantly affecting the continent’s chance at industrialisation and GDP growth.

In the run-up to the 2013 polls, the Government pledged a 7-10 per cent growth rate in the first two years in power so as to create a million new jobs for the youth. Their campaign manifesto, dubbed ‘Uchumi’ - provides targets for growth and development through a myriad ways in which upon assumption to office would build an enterprise economy.

This is through introducing a policy where at least 10 per cent of Government procurement is acquired from entities established under the youth enterprise fund; making the public procurement regime open, transparent and corruption-free in order to ensure that all deserving young entrepreneurs have the opportunity to secure Government tenders; transforming the Youth Enterprise Development Fund and Kenya Industrial Estates into a new national enterprise agency - Biashara Kenya - to catalyse further economic growth, as well as retaining a youth focus by placing representatives from the National Youth Sector Alliance on the new agency’s board.

Along with government’s commitment to promoting opportunities for the youth, the Government has now proposed to create incentives to private sector players through tax credits for those who create opportunities for the young people. Treasury Cabinet Secretary Henry Rotich’s Finance Bill notes that an employer who engages at least 10 university graduates as apprentices for a period of six to twelve months during any year of income shall be eligible for tax rebate in the year subsequent to the year of such engagement.

Introducing tax breaks for companies that establish apprenticeship programmes for young people by equipping them with requisite skills and expertise in the job market is a step in the right direction to enhancing growth and development of the youth.

Such apprentice opportunities to varsity graduates enable them earn money, remain with little or no student debt especially for those with student loans, learn high level skills through personal, on-the-job training from a highly qualified journey person (mentors). Similarly, apprenticeships bequeath varsity graduates floodgates of lifetime opportunities for advanced development of talent and climbing up corporate ladder to rewarding careers.

To open up opportunities for the youth through innovate ways that manifestly meets the diverse needs of graduates and professional employers, the Association of Chartered Certified Accountants (ACCA), a global body for professional accountants which serves more than 7,000 students and 850 members in Kenya, partnered with Standard Chartered Bank to set up ‘ACCA Varsity Challenge’ which targeted university students in Kenya whose role entailed exploring strategic business and investment opportunities of the bank.

The challenge had three stages-financial management stage, investment analysis stage and business simulation stage. Through a rigorous elimination process nine students were crowned as the 2015 ACCA Varsity Challenge Apprentice, securing internship placement opportunities with Standard Chartered Bank.

Social agenda

Other global companies embracing the youth development agenda in Kenya include Base Titanium, which has its mining operation in Kwale, Africa leader in Investment and Infrastructure Qalaa Holdings through its local investment Rift Valley Railways (RVR), which runs The Rift Valley Railways Management Training Development Programme. The programme offers intensive training aimed at helping management trainees understand and appreciate the process of the natural hierarchy of work.

Beyond the financial gains made to companies’ bottom lines, the tax credit initiative for advancement of apprenticeship offers an example of how public private partnership can be used to advance a social agenda. The 2015/2016 finance Bill if adopted creates an excellent platform for growth of enterprise and self sustenance among the youth.

—The writer is the acting Head of ACCA Kenya