Mzimba youths locked out of economic opportunities by strict lending rules

Promising business ideas are going to waste in Mzimba as young people say strict lending conditions and limited job opportunities are locking them out of the economy, deepening frustration in a district full of untapped potential.

The concerns emerged during an economic dialogue organised by the Manson Institute for Leadership Education (MILE), where youths, government officials, and development stakeholders met to discuss barriers to youth economic participation.

For many young people, access to finance remains the biggest obstacle. Speaking at the meeting, Chrispin Kaperemela of Mbenecho Youth Club said high collateral requirements imposed by banks and lending institutions are excluding capable young entrepreneurs.

“We have ideas that can transform our communities and create employment, but we are failing to access loans because we do not have the collateral that banks and other lending institutions demand. This is locking us out of economic participation,” said Kaperemela.

Kaperemela further stated that beyond financing, youths also pointed to challenges in securing formal employment. Many said employers demand years of experience even for entry-level jobs, while others raised concerns about alleged corruption in recruitment High collateral requirements imposed by banks and lending institutions hinder Youth in the business sector.

“In some cases, young people are asked to pay bribes just to be considered for jobs. This is discouraging and unfair, especially for those who are already struggling,” Kaperemela added.

Mzimba District Labour Officer Edward Shafi acknowledged the challenges, describing them as real but partly driven by limited access to information.

“Some of these challenges arise because young people are not fully aware of available opportunities and services that could support them. There is a need to strengthen linkages between youths and service providers so they can access the assistance they need,” said Shafi.

He stressed the importance of improving communication between government agencies, financial institutions, and young people so that information on loans, skills training, and employment opportunities is more accessible.

MILE Executive Director John Nyangulu said the concerns raised reflect a broader national problem affecting young people across Malawi.

“The concerns brought forward by the youths are valid and require urgent attention. As an institution, we are committed to continued engagement with duty bearers and stakeholders through platforms like this to find sustainable solutions,” he said.

The dialogue highlighted the urgent need for inclusive economic policies that respond to the realities faced by youths, especially in rural districts like Mzimba.

With youth employment in Malawi standing at just 21.5 percent, according to the Malawi National Statistical Office, the voices from Mzimba add to growing calls for reforms to improve access to finance, promote fair hiring practices, and unlock opportunities for young people.