- Development & Aid
- Economy & Trade
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Monday, January 22, 2018
(Raghav Gaiha is (Hon.) Professorial Research Fellow, Global Development Institute, University of Manchester, England; and Vani S. Kulkarni is Lecturer in Sociology, University of Pennsylvania, USA).
NEW DELHI, Nov 13 2017 (IPS) - Many recent accounts tend to dismiss productive employment of youth in rural areas in Africa as a mirage largely because they exhibit strong resistance to eking out a bare subsistence in dismal working and living conditions. We argue below on recent evidence of agricultural transformation that this view is overly pessimistic, if not largely mistaken.
Agriculture has a substantial role in meeting the youth employment challenge facing Africa. Even in a most optimistic scenario, non-farm and urban sectors are not likely to absorb more than two-thirds of young labour market entrants over the next decade. But there will be vast opportunities for the innovative young people in agricultural systems as they adapt to a range of challenges in the near future. These challenges relate to raising productivity in a sustainable way, integration into emerging high value chains, and healthy diets.
While the challenges are daunting, the potential benefits of addressing them are enormous. Higher prices, more integrated value chains, widening connectivity to markets in some areas, and greater private and public engagement in the sector are creating new opportunities. A major barrier is, however, strong negative preferences/attitudes of the youth towards agriculture.
A survey of rural in- and out-of school young people towards agriculture, based on field-work in two regions in Ethiopia, is remarkably rich and insightful (IDS Bulletin Volume 43 Number 6, 2012). Life as a farmer was tied to life in a village which most respondents saw as hard and demanding. Yet there was considerable heterogeneity in the views of the young. Participants in both regions concurred that agriculture has changed significantly over the last decade. The introduction and adoption of agricultural inputs such as improved seeds, fertilisers and better farming methods (such as slash ploughing, sowing seeds in rows, water pumps, modern beehives) have produced significant increases in productivity and earnings.
There were competing narratives on whether agriculture was becoming more desirable to young people as a result. Participants felt that these developments were making agriculture more and more profitable and therefore more appealing. But they felt that there was a huge obstacle in engaging in it – scarcity of land. Although the dominant view was that young people are disinterested in agriculture, some participants pointed out that this was not always the case.
A slightly more positive attitude towards agriculture was evident among young people who had left school, either failing to complete high school for various reasons or to qualify for higher level education. Although this group of respondents were equally aware of the grimness of traditional agriculture and the life of the common farmer, many were not dismissive of agriculture as a possible future livelihood, while a few even saw it as a preferred livelihood option, under improved conditions.
Recognizing agriculture as a viable employment option is even more challenging when economic and social restrictions related to access to productive resources (eg land, credit and improved seeds) are taken into account. All these limitations are exacerbated for young women who, in general, have no prospect of land access due to rules of inheritance, and who know that they will mainly have to work for their husbands (ILO, 2016).
Although the government considers rural educated youth as instrumental in bringing about a transformation in agricultural skills, knowledge and productivity, it has not effectively addressed either the attitude of many young people towards agriculture or the obstacles preventing their entry into the sector.
To create opportunities commensurate with the number of young people who will need employment, constraints on the acquisition of capital, land, and skills must be removed or relaxed.
A few selected initiatives are delineated below.
Allowing alternative forms of collateral, such as chattel mortgages, warehouse receipts, and the future harvest, can ease the credit constraints-especially for young farmers. The OHADA7 Uniform Act on Secured Transactions, in effect in 17 Sub-Saharan African countries, was amended at the end of 2010 to allow borrowers to use a wide range of assets as collateral, including warehouse receipts and movable property such as machinery, equipment, and receivables that remain in the hands of the debtor. Leasing also offers young farmers some relief, as it requires either no or less collateral than typically required by loans. A case in point is DFCU Leasing in Uganda, which gave more than US$4 million in farm equipment leases in 2002 for items such as rice hullers, dairy processing equipment, and maize milling equipment. Some outgrower arrangements prefinance inputs and assure marketing channels. In Mozambique, Rwanda, Tanzania, and Zambia, Rabo Development (a subsidiary of Rabobank) offers management services and technical assistance to financial institutions, which, in turn, finance supply chains with a range of agricultural clients.
The two aspects of land administration that matter most to young entrants to the labour force are the need to improve security of tenure and the need to relax controls on rental. Land redistribution will also enhance young people’s access to land. In general, policies and measures that help the poor to gain access to land will also help young people.
The growing food demand in Africa is a major avenue for agro-processing, which can easily be developed using small and medium-sized entities (SMEs). This option requires less capital, is more labour intensive and facilitates the proliferation of units in rural boroughs and small towns, offering employment and entrepreneurial opportunities, local value added and new incomes. Agro-processing SMEs can also facilitate the resolution of post-harvest problems, which are a significant issue in SSA resulting in a loss of revenue for farmers.
In the Niger Delta, for instance, the IFAD-supported Community Based Natural Resource Management Programme is promoting a new category of entrepreneur-cum-mentor called the ‘N-Agripreneur’. These N-Agripreneurs own and run medium-scale enterprises at different stages of food value chains. They deliver business development services to producers, especially young people, who are interested in agro-based activities, such as farming as a business, small-scale processing, input supply and marketing.
In order to enable young people to respond to the environmental, economic and nutrition challenges of the future, they must develop suitable capacities. A case in point is ICTs which can develop young people’s capacities, while improving communication and easing access to information and decision-making processes. Investing in extending these technologies to rural areas, in particular targeting young people – who are generally more adaptable to their use – has allowed them to keep themselves up-to-date with market information and new opportunities.
In sum, there is an abundance of remunerative employment opportunities for the youth in rural areas that could dispel the mirage through imaginative government policies.
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