Malawi struggles to create formal jobs

Malawi continues to struggle to create enough formal jobs for its fast-growing youth population and stakeholders have touted entrepreneurship as a possible alternative to drive the country’s industrial growth and job creation. But while youth enterprise initiatives are beginning to produce signs of progress, a bigger question remains on whether Malawi can transform small youth-led businesses into scalable productive firms to support employment, exports and economic recovery. Speaking during a Malawi Youth Enterprise and Livelihoods Forum in Lilongwe on Wednesday, Alliance Bioversity International and International Centre for Tropical Agriculture (Ciat) Malawi chief of party David Slane said many young entrepreneurs possess viable ideas, but struggle to navigate structural barriers within the business environment.

“There are lots of good business people in Malawi who have excellent ideas, but are being excluded from opportunities presented by projects because of rigorous barriers,” he said. On his part, Ministry of Industrialisation, Business, Trade and Tourism Principal Secretary Bright Molande said youth enterprises can play a greater role in supporting export growth if adequately supported to scale production. “Foreign exchange is largely created by the private sector when they are being productive and exporting,” he said.

The Business Acceleration for Youth Project has since 2022 supported more than 450 start-tups and 61 micro, small and medium enterprises through incubation, technical assistance and grants targeting youth-owned businesses. Mami Foods, an agro-processing firm supported under the initiative, sources fruits and vegetables from across Malawi for processing into dried foods, juices and jams while working with 500 smallholder farmers, most of them women and youths. Mami Foods co-founder and chief executive officer Ekari Trigu said the business has expanded employment opportunities while strengthening farmer market linkages.

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She said despite the optimism surrounding youth entrepreneurship, access to finance remains one of the biggest obstacles. Alliance Bioversity International and Ciat managing director Wanjiru Kamau-Rutenberg, who spoke during the forum, said entrepreneurship would be critical if African economies convert their growing youth populations into productive economic assets. “The size of our youth population can either catapult Africa into prosperity or really be what holds us back,” she said.

Business Acceleration for Youth Project data show that the supported enterprises recorded a 117.5 percent increase in jobs among start-ups and a 91.5 percent rise among small and medium enterprises. During the forum that attracted government officials, development partners and entrepreneurs, it was agreed that high interest rates, collateral requirements and informality continue to limit access to commercial credit, forcing many enterprises to remain small and survival-oriented.

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