Youth Job Creation is one of the major programs the Addis Ababa City Administration has put in place to overcome unemployment in the capital. Through the program, many of the city’s youth have been able to create jobs and generate income for themselves and others.
The creation of job opportunities for the youth requires a large amount of finance. The Ethiopian government sees providing loan for the youth so that they create their own job opportunities as one of the strategies to reduce widespread youth unemployment. By taking the experience at the federal level, the Addis Ababa City Administration has allocated a two billion Birr loan for the city’s unemployed youth.
The Addis Credit and Saving Institution were given the responsibility to manage this finance. Its Board of Directors approved the proposed Federal Credit Policy by adopting the Federal Youth Revolving Fund so that the process of loan supply becomes clear, speedy and fair.
Bizuhan Alemu, Youth Inclusion Team Leader at Youth and Volunteer Coordination Office of the city administration told The Ethiopian Herald that the previous loan policy was not easily accessible for the unemployed youth. In order to access it, they had to be organized in a group which comprises four or five individuals. As a result, the process took a very long time and tested the patience of the youth.
The youth were also required to save 10 percent of the total amount of loan they want. This requirement had also discouraged section of the youth who could not by any means save the required amount. The new loan policy has reduced the required saving to five percent and opens the door for the youth to be creative in investing the finance, she added.
In addition, the city administration has also been delivering various awareness rising training for the youth regarding the repayment of loans and grace period. One of the mistakes made in the past was that the youth didn’t receive adequate advice and support regarding the process of loan repayment. Some of the even went as far as thinking that they would not be accountable for the money as they considered it their own than a loan that should be repaid.
The other problems for those who properly invested the money and started their own business were the absence of market linkage and poor infrastructure. Various measures have been taken to improve the situation this time around.
According to the City Administration document, the revolving fund will be used to create jobs for about 700 thousand unemployed youth in the capital.
The Ethiopian Herald July 18/2019
BY ESSEYE MENGISTE
