Presidential advisor on youth matters and enterprise development, Daisry Mathias says it will be unwise for youth unemployment to be declared a State of Emergency, as it will undesirably affect the financial sector.

Current debates in the National Assembly and some youthful politicians have called on President Hage Geingob to declare a State of Emergency on youth unemployment and allow for the country’s resources to be directed towards fighting the high unemployment rate, which could reach 50.3 per cent by end of 2021, as per a United Nations Populations Fund (UNFPA) National Policy Report.

In a recent interview with Nampa, Mathias explained that such a pronouncement will affect commercial banks’ credit schemes and the country’s financial stability and standing.

“We have to look at the intended and unintended consequences on the financial sector, this will mean that the commercial banks that have the responsibility of lending and taking care of money that belongs to the public, will have to write off debts to creditors that have taken loans,” she explained.

Mathias indicated that the youth unemployment crisis can be addressed without shutting down the financial sector of the country through targeted interventions such as channelling and expanding resources to enterprise development, business rescue and inclusive economic growth to create job opportunities.

The youth advisor further noted that Government does not create jobs, but instead creates a conducive environment that can allow for the youth with resources and ability to thrive through business creation.

“The responsibility for job creation truly lies in the private sector. Government has already responded to mitigate job losses through the development of the business risk task force to look into the insolvency legislation and ensure businesses and employers who are already creating jobs for the young people do not close down completely,” she indicated.

Mathias equally noted that that the government is yielding to youth unemployment through various economic interventions such as the green hydrogen and ammonia industry, which has the potential to create up to 20 000 jobs in the Hardap and ||Kharas regions and fetch up to US.dollars 10 billion in foreign direct investment.

“Government is already executing programmes that will create opportunities for young people as a matter of priority and urgency through economic activities,” she said.

Source: The Namibia Press Agency