Finance Minister, Ken Ofori Atta, has disclosed that government’s development of the YouStart initiative will help create one million jobs for the youth in three years.
According to him, the initiative aims to support the youth to develop commercially viable businesses and is designed to instil proper “commercial orientation” in the beneficiaries. Mr Ofori Atta explained that YouStart is the “vehicle for supporting young entrepreneurs” to gain access to capital, training, technical skills and mentoring.
The finance minister who announced this in his presentation of the 2022 budget statement and economic policy to Parliament on Wednesday, November 17,2021, noted that the initiative will equally enable the “youth launch” and operate their own businesses.
“This understanding of the youth employment challenge, as well as extensive consultations with stakeholders including youth associations and educational institutions across the country, have led to the development of the YouStart initiative as a key vehicle to create 1 million jobs in 3 years under the GhanaCARES programme”.
Mr Ken Ofori Atta
Commenting on the partners of the initiative, the finance minister revealed that the Ghana Enterprises Agency (GEA), the National Entrepreneurship and Innovation Programme (NEIP), and partner financial institutions, will serve as the implementing arms of YouStart. With this, Mr Ofori Atta noted that entrepreneurs will be able to apply for support through a “dedicated YouStart” online portal.
Mr Ofori Atta emphasized that NEIP will also engage faith-based organisations as partners for the delivery of essential artisanal skills. Essentially, the finance minister underscored that the initiative will, in terms of training, provide skills development, entrepreneurial support and business advisory service provision.
In the area of funding, Mr Ofori Atta intimated that the youth will be given access to competitive credit and starter packs and receive mentoring and access to markets including portals to facilitate “digital linkages” between youth-led enterprises and other businesses and relevant government agencies.
YouStart products to support youth-led businesses
Touching on the products that will support youth-led enterprises under the YouStart initiative, Mr Ofori Atta revealed that soft loans of up to “GH¢50,000” will be given to particularly “young graduates and school leavers” to help start-up and enable small businesses to expand.
The starter packs, which is made up of “soft loans tied to equipment acquisition” of up to GH¢50,000 will be given to individuals whiles associations and groups will receive ¢100,000.
The YouStart, Mr Ofori Atta explained, “dovetails” into government’s overall ambitious private sector growth strategy and is anchored on a revitalised financial sector, establishment of Development Bank Ghana and “converting” the Ghana Amalgamated Trust (GAT) into a “permanent investment” vehicle.
“The objective is to raise long-term capital to provide equity investments to strengthen financial institutions, and restructure companies in the hospitality, education, and export-oriented industries that were devastated by COVID-19. YouStart will be operational by March 2022”.
Mr Ken Ofori Atta
The finance minister posited that government is engaging financial institutions and development partners to support its job creation drive for the youth. All these interventions, he explained, will create a “robust financing eco-system” capable of supporting businesses from the early to mature stage.
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