The 10 billion Birr Revolving Youth Fund, which has been ratified by the House of Peoples Representatives two years ago to create jobs for the youth, has not brought about the desired outcome.
The huge number of unemployed youth is evident that the government is still facing challenges in meeting its aim to alleviate unemployment, one of the reasons for the unrest in the past couple of years. It is to be recalled that following the 2016 unrest throughout the country, former president, Mulatu Teshome (PhD), appeared before Ethiopian Parliament to announce the plan two years ago.
Whereas it has been found necessary to reduce poverty through employing the youth and thereby maintain peace and stability, Ethiopia has managed to combat unemployment as one of the prioritized assignments which need immediate attention. Thus, the country has undertaken various measures and launched programs aiming to economically empower the youth and reduce unemployment.
The government has recently announced that the fund has created 147,000 jobs for the youth in urban areas, the overall performance is unsatisfactory.
Sisay Asemre Lecturer at Political Science in the University of Gonder approached by The Ethiopian Herald said that the government has to develop and revise a youth responsive policy, implement financing mechanisms including finding an alternative source of funds, ensure allocation of it in national and regional levels and monitor its effective utilization. “The mere supply of the fund, if it is not systematically managed, could not bring about the desired result.”
According to Sisay, besides the establishment of good governance and fight against malpractices, policymakers should adopt free market economy by creating enabling environment which possibly attracts both domestic and foreign investors. He also urged the government to look for an alternative economic policy that could benefit such productive forces. As to him, there is a lot to be done in the production of competitive and skilled manpower with a creative mindset and innovative psychological makeup.
For this reason, higher institutes have to work towards producing qualified professionals. The establishment of industries which hire young graduates plays a crucial role in tackling unemployment, but in Ethiopia, there is a big gap between the industry’s demand and the number of graduates from universities, he noted.
“Moreover, it is also essential to strengthen microfinance institutions as they are easily accessible to citizens in every corner of the country. Working towards the expansion of industrial clusters which consume large manpower is the vital action,” Sisay noted.
The Ethiopian Herald, January 24/2019
LAKACHEW ATINAFU
