Youth appeal for easier access to investment

Young people have called for advocacy in terms of acquiring entrepreneurial skills and urged job creators to focus on theirs needs in particular.

The Rwandan Senate in Juky 2021 said that unemployment among young people was on the rise and that a large number of its projects were failing, calling for urgency in taking measures to reverse the trend.

The findings were release in a report by the Senate Committee on Social Welfare and Human Rights, which analysized the government’s activities in the job creation process.

Senator Umuhire Adrie, who represents the Senate Social Welfare and Human Rights Commission, talked about unemployment rate, which was 22.4% far higher than the national average of 17.9%. ‘as released by the National Institute of Statistics in 2020.

The proportion of graduates in vocational and vocational schools who get the job was 67.7% in 2016. The percentage dropped to 64.9% and 59.6% in 2018 and 2019 respectively.
The decrease is reporter at a time when the government’s targets to create 1.5 million decent and productive jobs between 2017 and 2024.

The target is almost a dream as over the past four years, more than 778,136 jobs have been created including 658,630 jobs for the youth.

The senator said that although some progress has been made, there are still obstacles.

The youth of Muhanga district in the Democratic Green Party of Rwanda say they are threatened by the issue, according to Jean Luc Gasangwa, the party’s youth leader in this district.

“The first problem is unemployment and access to credit which is still a nightmare” he said.

He said they had discussed the issue with the youth, the reason why they called BNR to approach the banks, especially the Saving and Credit Cooperative (SACCO) to reduce the interest rate for the loans they give which they find high.

He also demanded that young people not be required experience certificate during employment, even if it is necessary to make it easier for them to gain that experience and get paid.

Jeannine Mucyeshimana, a young woman said that women are struggling to find the capital urging the government to protect them for the best of the country.

“The government and other partners have to help us find an investment that will help us thrive, and have a better future,”

On the part of the party leadership, Denise Mukansanga Deputy Treasurer says that ciyizens are like children of government and they need to be advocated for progress.

“There is a need for change. For example, a low-income person who starts a business of 50,000 Frw does not expect to be able to earn a living, such as food, clothing, and the government” she citing heavy taxes tax payers incur and the need for advocacy to cut them down.

Ensuring businesses welfare through vaivet axes for youth doing small business took the centre stage at a campaign rally as the Green Party canvassed support in Kigina Sector, Kirehe District during Parliament campaign. The party mainly focused on working on laws to promote democracy, equality and security for all.

Addressing voters, Frank Habineza, the party president, said that once voters grant the party a chance to secure seats in Parliament, they would advocate for laws that value the work of teachers and security personnel.

Francine Murekaze, one of the candidates, said that once the party secures seats in Parliament they would push for the removal of taxes for people venturing into a business that does not exceed Rwf2 million.

The report dubbed Rwanda Youth Financial Inclusion Report and produced by Access to Finance Rwanda (AFR) in partnership with National Bank of Rwanda, Ministry of Finance and Economic Planning and National Institute and of Statistics Rwanda, commends increasing access to post-secondary education as it is critical in building a knowledge-based economy.

It says establishing a catchment programme that up-skills the youth after completing their education will facilitate a transition from education to employment It recommends supporting young business owners to avoid premature death of businesses and introducing affordable credit products which could likely increase usage of credit.

Youth financial inclusion strategy should focus on people in rural areas and those in lower-income quintiles, recommends the report.

The recommendations also include leveraging technology to provide financial services and introduce new products since the youth own businesses in the agriculture (21.2 percent youth) services sectors (45.9 percent) than the rest of the population, and increased entrepreneurship in these sectors would have a positive impact reducing youth unemployment, recommends the report.

Given the informal mechanisms exhibiting higher risk exposure, efforts directed towards tailoring formal savings products to suit the needs of youth is likely to attract the youth in developing a culture of saving formally, it adds.

The report warns that such informal mechanisms exhibit higher risk exposure.