Domestic
Business Week: Young Entrepreneurs Struggle to Access Financing
Seven themes were discussed during conferences organized in Toliara. Financing for youth-led projects stood out as a key concern. Young people's enthusiasm for entrepreneurship has grown over the past seven years, as highlighted during panels at the "Atsimo Andrefana Business Week" event in Toliara. Young graduates from the region have created agro-food processing companies, audiovisual production firms, craft businesses, and digital specialists. Most of these young entrepreneurs received financial support from programs such as the Integrated Growth Pole (PIC) or ministerial projects to launch their activities. Cynthia Lapamiarisoa, head of the incubation structure "Saramba Initiative" based in Toliara and a panelist on "Women Leaders and Young Entrepreneurs: New Faces of Regional Economy," explains that young initiatives are emerging but remain insufficient. "Since Saramba Initiative was established in 2021, we have trained nearly a thousand young people and incubated seventy women. Ideas are flourishing and most are good and can support the regional economy. Women, young and older, are highly motivated to start businesses. We support them through business plan development. But these young people and women lack financial resources to launch afterward. It's very unfortunate," Lapamiarisoa explained. Another young woman testified about her difficulties in realizing her project. Without attending prestigious schools or growing up in a wealthy family, she explained having to work while seeking financing for her initiative. "I had to work for many reasons. I had neither the skills nor resources to start what I had in mind. I struggled for months and continue seeking funds to truly begin my project. For now, I still work for someone else," she stated publicly. "We would like to be supported in what we're already doing, by partners or public authorities. Is it possible to feel government involvement in our activities? Even taking us to another country for an immersion trip, like what American President Trump did for young people in his country. That would be a huge boost," said Gaël Mamonjy, young co-founder of "Raiky," a digital company, and also a coach and trainer for young people. He addressed Youth and Sports Minister Alain Désiré Rasambany, a panelist on "Toliara 2030: Making Atsimo Andrefana a Destination of Excellence." The minister acknowledged that access to financing remains problematic. "Young people, youth associations, and women throughout the country all ask for access to financing to create businesses. The demand is enormous. The Ministry of Youth and Sports doesn't have enough resources for this. There are programs like Confejes that offer opportunities, but the number of beneficiaries is very limited since they come from across Africa," the minister explained. He also revealed that the financing mechanism from external sources faces "disparities in laws voted and enforced by our own politicians." "Donors come proposing financing for interesting projects like sports complexes and others, but it's nearly impossible to transfer funds given current law," the minister emphasized.
Source: L'Express de Madagascar