Secretary-General holds talks with Mozambique bankers

Job creation for young people is a key requirement for Mozambique’s future development, Secretary-General Kamalesh Sharma told bankers in the capital Maputo on 19 April.

On the final day of his visit to the southern African state, Mr Sharma focused on the need to integrate young people into the formal economy, which currently constitutes an estimated 2.5 per cent of the labour force.

The way forward is to promote youth entrepreneurship which means that banks should reconsider the conservative parameters that usually attend lending, he said. “We are encouraging Commonwealth banks to look at youth as a resource.”

In meetings with the Banco Comercial e de Investimentos (BCI) and the development bank Gabinete de Consultoria e Apoi à Pequena Industria (GAPI), Mr Sharma stressed the need for joined up efforts between government, Chambers of Commerce and Industry and the private sector. The political will is clearly there and the way to progress is to consolidate efforts already being made, he said.

“We must trust youth to develop as entrepreneurs and to become job creators.”

The Secretary-General cited partnerships already under way with banks in India and Kenya through the Commonwealth Secretariat’s Youth Enterprise Finance Initiative.

Commonwealth-wide, young people face challenges getting loans to start their own businesses because they do not have financial capital or collateral. In addition, BCI and GAPI both highlighted a need to improve the quality of proposals being submitted by young people.

Business management training, technical assistance and mentoring are key elements required to support young entrepreneurs, both pre and post-investment, they said.

Mr Sharma said that he hoped the Secretariat – through the Youth Affairs Division – could support efforts already under way in Mozambique.

Earlier, the Secretary-General met the Minister of Science and Technology, Venancio Massingue, and updated him on progress with regard to the development of Commonwealth Connects, the new web-based portal – which is expected to be unveiled when Commonwealth Heads of Government meet in October 2011 in Perth, Australia.

Mozambique has made a pioneering contribution to the development of the portal in its role as Chair of the Steering Committee, which has guided the process since its inception. “We want to make Commonwealth Connects as accessible as possible. It is not an elite service,” Mr Sharma said.

He later met the UN Resident Representative in Mozambique, who updated him on their priorities for the next three years. The Secretary-General reiterated his commitment to continue working in areas where the Commonwealth could add value, such as public administration, good governance and human rights.

The Secretary-General travels to the Kingdom of Lesotho on 20 April.