Young graduates are more interested in public service than in personal investments to create jobs. An observation made by several economists.
Judicious. In view of the current economic situation, some economists and academics also advocate the idea of further developing access to credit for young people. Whether they are graduating from the Faculty of Economics or other training, this is a way to further encourage young people to take entrepreneurial initiative and at the same time develop the share of direct investments.
In the Big Island. According to Professor Lazamanana, teacher-researcher at the University of Antananarivo, this is one of the ways to encourage young people to invest more in the development of businesses, especially small and medium-sized ones. “To develop the national economy on different scales, we must give space to our young people, the main assets of the Big Island in terms of labor force, but also investment. The first thing to do to allow these young people to develop their potential is to grant a certain ease of access to credit, to allow them to invest and create jobs,” says the academic, on the sidelines of a conference organized by the ISS institute on Friday.
Use of credit
A solution opting for job creation with the aim of reinvigorating, if only a little, the economic vitality of the country. Indeed, outstanding credits constitute a preferred method as a financing solution for business creation. Years ago, many people suffered from the rejection of their credit applications from financial institutions.
However, the proliferation of microfinance and financing services for individuals, and/or small and medium-sized businesses, has become commonplace in recent years, with an explosion of nearly 50% in outstanding credits with microfinance between 2020. and 2022. Fallout from the health crisis or not, people using credit have become numerous between this period.
For its part, the National Coordination of Inclusive Finance (CNFI) department explains this boom as being “the fruit of the ongoing sectoral change brought about by the implementation of the national financial inclusion strategy in Madagascar”. Microfinance currently reaches more than two million clients, compared to six hundred thousand fifteen years ago, a 300% breakthrough in financial inclusion. A service for which the Malagasy government is trying to increase the rate to 45%.