The recent economic growth in the MENA Region has not created the required number of jobs to absorb the growing labor force and unemployment, especially among the youth – a critical challenge the MENA region is faced with.

 

According to the International Labor Organization of the United Nations, youth unemployment is highest in the MENA region where one out of four young people are unemployed—roughly double the world average. In search of employment, youth migration from rural areas to urban cities is increasing in the Arab world. This youth urban influx is due to a number of factors including the youth’s disinterest in agricultural careers. This is directly affecting the region’s agricultural production, food security and growth of the rural economy. Youth who remain in the rural areas often lack financial means, education, training and market access necessary to generate enough income to maintain acceptable levels of household food security. Those who migrate to urban areas are often unable to earn enough income to achieve food security.

In mid-2012 the Islamic Development Bank (IDB) launched the Youth Employment Support (YES) program with a total financing of US$ 250 million to address the above challenges. The program is being implemented in four countries in the MENA region including Egypt, Tunis, Libya, and Yemen. When completed, the program is expected to decrease unemployment by 15 percent and poverty by 10 percent in the target projects locations.

 

The program finances employment generation projects in rural areas, and capacity building activities for skill enhancement and skill alignment with market needs. Under the employment generation, the program finances value chain development in horticulture and high value commodities such as coffee and honey. In addition, the program provides microfinance to support establishments of Small and Medium Enterprises (SMEs) in the agricultural sector.