Securing decent work for young people in Africa is critical given the large numbers
of young people entering the labour force each year (about 11 million). With few
opportunities for formal employment in manufacturing and services, agribusinesses
offer young people the opportunity to earn income in rural areas. If others emulate
them, there is the potential for positive regional spillovers. One institutional innovation
that enables young people to mitigate financial and knowledge handicaps is contract
farming. By supplying their produce to a third party (such as an agri-processor or
retail outlet), which in return guarantees markets and often inputs, young workers
are able to access credit, markets and technology. This can be a “win–win” solution
because young workers gain access to markets, while the private company has access to
produce without having to either acquire land or supervise labour. Fiscally constrained
governments also benefit because private sector involvement obviates expenditure and
reduces risks, and may also provide expertise unavailable in the public sector.
This report presents the lessons learned from a project in four East African
countries – Burundi, Kenya, Rwanda and Uganda – focusing on youth and their
agribusinesses. In Burundi and Rwanda, poultry and eggs were sold to retailers but
were also provided to schools to alleviate malnutrition. In Kenya and Uganda the focus
was on fish farming, raising finfish in cages and selling fingerlings. Partnering with
private companies enabled young people to obtain business and technical knowledge
in addition to a market for their produce.