THE dons of IDA (World Bank Institution) in Burundi continues to increase. Another program called PRETE will be financed to the tune of 100 million USD via a funding of the IDA. Additional funding for the employability of young people. For what results? Questions abound…
It’s 11 a.m., I take my phone to follow the news in my country as usual. Stunned, I came across a post from Akeza.net speaking of a project analyzed and adopted by the National Assembly on the agreement of a grant of 100 million USD between Burundi and the IDA, which will finance the project for employment and economic transformation in Burundi (PRETE en acronym). Suddenly my heart twists. Yet another program? For what results?
A little jump into the numbers to understand. 48 billion BIF is the amount covered by the general State budget for the PAEEJ. More than 160 billion BIF for a program to create 545,456 jobs for young people as part of the National Action Plan for Youth Employment (PANEJ), developed for a 4-year cycle from 2021 to 2025. Without forget the establishment of the Burundian Youth Employment Agency with 72 million BIF to supervise young people, the creation of Sangwe cooperatives with a budget of 10 million BIF for each cooperative, the creation of the Bank of Youth Investment (BIJE), the Youth Impulse, Guarantee and Support Fund (FIGA), etc.
For most of these programs, it is clear that the results are still awaited. The unemployment rate continues to rise, with disastrous consequences.
Should we then be alarmed by this donation supported by IDA to finance PRETE? Obviously yes. If other programs have not produced good results (here I am referring to the number of stable jobs created by young people who have benefited from these programs and the unemployment rate still high among young people), why inject funds into a similar program? What about studies on the feasibility of this program in order to find lasting solutions to unemployment?
It’s a question of strategy
I read carefully an article concerning the PAEEJ, published on the Yaga website in June 2022, which sparked strong reactions on social networks. I find that the ideas put forward by the author were well founded, and the facts presented support his arguments.
As an economist, my analysis is not far from his. The government should instead create businesses so that young people can find jobs. Otherwise (as clearly explained by this author), target as a priority young people who are already active so that they diversify, expand their activities and hire staff in the process.
The government should develop an implementation strategy, focusing on business creation and increased investment. It should reform the business environment in order to make economic actors more productive and lead them to contribute to national economic development, through job creation.
Instead of continuing to pump money into job creation programs, our leaders should seek to organize job creation in the private sector in order to attract foreign investors. This way, the country will have more chances to escape the vicious circle of youth unemployment.
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2024-02-09 07:32:40