Youth entrepreneurship programs foster job creation in Mozambique

Youth entrepreneurship programs foster job creation in Mozambique
Banking & Financial Services
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Gaspar Sitóe, a young man from southern Mozambique, aspired to become an entrepreneur and create a clothing brand marketed through the tertiary industry. However, he lacked the necessary skills to start his venture. This changed in 2022 when he was selected for Agora Emprega, a World Bank-supported program designed to aid young entrepreneurs with grants and mentorship opportunities.

Through Agora Emprega, Sitóe acquired business skills and purchased industrial serigraphy equipment. By early 2023, he launched Cachichi Clothing Enterprise in Matola, Maputo Province's second-largest city. "This has been such a journey. If someone had told me how this would have unfolded I wouldn't have believed them," said Gaspar.

Currently, Gaspar employs five people and has secured contracts to supply school and workwear. His clients include other entrepreneurs supported by Agora Emprega, highlighting the program's role in fostering networking among businesses.

Despite challenges such as informal competition and import taxes on materials and equipment, Gaspar remains driven. He plans to expand his company's workspace, diversify clientele and stock production, open a fashion shop, and extend operations to Beira and Nampula provinces.

"I see my company serving the community, and I would like to encourage young people like me never to stop believing, dreaming, and looking ahead," Gaspar added.

Mozambique faces significant youth unemployment issues; around 20% of urban youth are jobless while many in peri-urban and rural areas work in agriculture or unpaid family jobs. To address this issue, the World Bank partnered with the Government of Mozambique through the Emprega Program. This initiative includes Agora Emprega—a business plan competition—and Acredita Emprega—a training program for self-employment productivity.

Agora Emprega aims to support 500 entrepreneurs nationwide with grants up to $23,400 by 2025. So far, it has trained 3,850 youth across Mozambique’s 11 provinces in preparing business plans based on criteria like socioeconomic relevance and sustainability. The program has created nearly 1,000 jobs so far.

Maria Vilanculo's story is another example of success facilitated by Agora Emprega. As a psychologist aiming to address mental health issues in Mozambique where awareness is limited, she dreamed of opening a psychology clinic but needed support. Selected for Agora Emprega, Maria gained essential business knowledge and founded Casa da Psicologia—the country's first private multidisciplinary psychology clinic—offering services such as psychology, psychiatry, nutrition counseling among others.

"It is both challenging and beautiful to do this job in an environment where little or nothing is known about neurological and emotional disorders – but here we are and we are here to stay," said Maria.

Maria now employs four people full-time with additional temporary workers as needed. She plans further expansion both nationally and internationally. "I’m so grateful for the opportunity Emprega has given me; this is a dream come true."

Emprega aims to benefit over 20,000 Mozambican youth aged between 18-35 years old by fostering entrepreneurial spirit through its programs supported by the World Bank under the Harnessing Demographic Dividend Project implemented by Mozambique’s National Institute for Youth under the Secretary of State for Youth and Employment.