Determinants of urban and peri-urban youth employment in agribusiness in Malawi

Abstract

Agribusiness has been recognized to provide employment opportunities for youth in Malawi. However, little is known on factors that drive urban and peri-urban youth into agribusiness employment. This study examined the determinants of urban and peri-urban youth employment in agribusiness in Malawi. A cross-sectional study design was adopted. Sample size was 9680 youth for quantitative data while a sample of 135 for qualitative data. Quantitative data was obtained from nationally representative Living Standards Measurement Surveys - Integrated Household Survey (LSMS- IHS) data for Malawi and Regression analysis was used with the aid of STATA 14.0. Qualitative data was generated from focus group discussions and key informant interviews and the data was analysed using thematic analysis. The study found that 44.5% of youth were employed in agribusiness with 35.7% of them working in farming. Furthermore, the study found that age, access to credit, extension services and livestock ownership positively and significantly influenced youth employment in agribusiness (p < 0.05). Whereas, marital status, education level, household size, dependency ratio, wealth, and distance to the market negatively and significantly influenced youth employment in agribusiness (p < 0.01 and p < 0.05). However, in the multinomial logit factors that influence youth employment into specific agribusiness categories vary. Thematic analysis confirm that the above factors influence youth to be in agribusiness. Moreover, findings revealed that despite opportunities in agribusiness, youth face challenges such as lack of access to credit, extension services, limited agribusiness education (training), lack of improved agricultural inputs and lack of access to land and markets among other things. Furthermore, results from Ordinary Least Square (Multiple Linear) Regression found a negative significant relationship between being employed in farming and per capita consumption expenditure at p < 0.01. Whereas, there was a positive significant relationship between being employed in a mix of farming and non-agricultural business as well as being employed in off-farm agricultural activities with per capita consumption expenditure at p < 0.01. Generally, it can be concluded that youth employment in agribusiness is influenced more by push factors, which highlights the lack of government investment and support towards youth in agribusiness and the sector itself. The study recommends that implementation of policy pathways should be potentially geared towards improving access to credit, agricultural extension services, and education in agribusiness, improved agricultural inputs, land and markets among other things. This will promote youth employment in agribusiness and thus, improve well-being of youth.