Project: Cost-Benefit Analysis of Industrialization and Youth Employment

In support of the Malawi Priorities project, the research team at Limestone Analytics investigated two development questions:

  • Where should Malawi focus its resources to achieve industrialization?
  • Which policies can effectively address youth unemployment and underemployment?

The research team conducted a desk review and consultations with local knowledge holders in order to understand the structural issues that have hindered Malawi’s ability to achieve its industrialization aspirations and provide employment opportunities for its growing youth workforce. Once the major issues were outlined, the research team explored interventions that have been implemented in Malawi or similar countries that address the most salient issues. Of particular interest were interventions that could drive small business growth to encourage the creation of employment opportunities. The team then selected two interventions to be modelled using Cost-Benefit Analysis (CBA):

  • A credit guarantee scheme to increase access to finance for Micro, Small, and Medium Enterprises (MSMEs)
  • A poultry farming out-grower scheme to facilitate greater integration of Malawi’s animal feed into the poultry value chain.

Clients / Partners

Timeline

Jan-Mar

2021

Literature review
Mar-Apr

2021

CBA model specification
Apr

2021

Final report and policy brief