Youth entrepreneurial projects have the potential to create self sustainable economic growth in Africa, Nelson Tugume, the Chief Executive Officer (CEO), Inspire Africa, has said.
Tugume said it is the duty of African parliaments to ensure that the law permits
easy controlled entry into the business through simplifying and abandoning unnecessary regulations to create a better business environment.
”I recognise the key role played by the private sector in spurring
economic development - often referred to as engine of growth, so
development partners should look at increasing their financial
support towards SMEs started by youth,” he told Business
Times in an interview.
A highly bureaucratic process, Tugume noted, increases possibilities of bribery to beat the system, and pushes away most would be young entrepreneurs.
“Unfortunately the registration process of businesses and the entry
process of new business in African economies is one big victim to this
bureaucracy. Unlike in Rwanda, where it takes 24 hrs (it now takes only 6hrs) to register your business,” he said.
Rwanda was ranked the first easiest place to do business in East African bloc and 3rd in Africa, following its tremendous reforms, including lowering hours to register business.
Inspire Africa is the initiator of the Entrepreneurial Reality TV Series, where the best entrepreneurial East African youth contest for a cash prize worth US $50.000 as start-up capital. Its grand finale is expected to be held in Kigali on April 1.
Tugume advised the World Bank and International Monetary Fund-IMF to consider financing youth entrepreneurial businesses in Africa since they are the biggest shakers and movers of SME development.
Didas Higiro, a Manson said that most people tend to overlook projects
started by the youth which discourages most of them from taking up risks and
“Policy makers should give the youth chance instead of doing what they feel youth want and also showcase successful young entrepreneurs who will act as role models for other youths,” Anneke Evers, Senior Advisor BiD network—a Dutch international organisation that fosters SME growth said.
Anneke said that efforts to support youth entrepreneurial business
projects will hasten SME growth seen as a backbone for most economies.
Moreover, Albert Nzamukwereka, president of Junior Chamber International-Rwanda chapter, said efforts to train youth in business planning and management and easing financial access is the best way to boost the number of young entrepreneurs in the private sector.