Youth unemployment and agribusiness: Study highlights Malawi’s challenges and opportunities

20 February 2024

In low-income countries, particularly in sub-Saharan Africa (SSA), youth face significant challenges in securing meaningful employment as they enter the labor force in large numbers. This issue is particularly critical in Malawi, where youth unemployment rates are alarmingly high. According to recent statistics, youth unemployment stands at 27.5% for those aged 15 to 24 years and 23.0% for those aged 15 to 34 years, compared to the overall unemployment rate of 20.4%.

The employment landscape in African countries, including Malawi, has not seen significant structural changes, hindering the transition to high-income economies with more productive agricultural and non-agricultural sectors. Efforts to address youth unemployment in Malawi have been insufficient, with many policies and programs overlooking the agricultural sector’s potential.

Despite these challenges, agriculture remains a major source of livelihood for youth in Africa and holds promise for addressing youth unemployment in Malawi. Agribusiness interventions across Africa have demonstrated positive outcomes, including establishing youth start-ups and increasing youth employment. In response, the Government of Malawi and its development partners have implemented youth-focused programs in agribusiness to provide training and resources to promote employment in this sector. Programs such as the Integrated Youth Development Programme (IYDP), One Village One Product (OVOP) program, and Associated Centre for Agro-Based Development and Entrepreneurship Support (ACADES) are among the initiatives in place.

While some studies have focused on factors influencing youth employment in agribusiness in rural settings, there has been limited research on urban areas. A recent study led by researchers, including IITA Agricultural Economist Sika Gbegbelegbe, sought to address this gap by examining the determinants of urban and peri-urban youth employment in agribusiness in Malawi. The study utilized nationally representative survey data from the World Bank’s Living Standards Measurement Study–Integrated Household Survey (LSMS-IHS) initiative. The lead researcher was Dingase Mkandawire from the College of Social Science and Humanities, Sokoine University of Agriculture (SUA), Morogoro, Tanzania.

The study employed a mixed-method approach combining quantitative and qualitative analyses and found that formal education negatively impacts youth engagement in primary agriculture (farming). However, formal education positively impacts youth who combine primary agriculture with other income-generating activities. Also, access to land and credit facilities, agricultural extension services, infrastructure such as roads and markets, and livestock ownership were identified as significant positive determinants of youth employment in agribusiness.

The study also revealed that female youth outnumber males in agribusiness activities in both urban and peri-urban areas. This trend is attributed to the traditional involvement of women in farming across Malawi. Additionally, while men are more likely to be employed solely in farming, men and women have equal opportunities in other types of agribusiness.

Based on these findings, the study recommends that programs aimed at supporting urban and peri-urban youth in agribusiness in Malawi should focus on enhancing access to extension services and practical training. These factors are crucial in facilitating the successful engagement of youth in agribusiness and addressing the challenges of youth unemployment in the country.

Contributed by Favour Ochuwa Daramola