Abstract
This study uses an ex-post evaluation method to estimate the optimal external funding level that maximizes the benefit of agro-pastoral enterprises supported by the youth program for the Promotion of Entrepreneurship in Agro-pastoral Activities (PEA-Youth Program) in the Centre region of Cameroon. The Linear Programming (LP) model recommends a personal contribution between 238,510 and 995,000 FCFA for each enterprise. It also recommends full use of start-up/subsidized credit (1,200,000 FCFA) for each activity, which can be justified by its zero interest rate (0%) as compared to the productive credit (15% interest rate) whose use(<1,500,000 FCFA) is recommended for short cycle activities (poultry, maize) and not recommended for long cycle activities (piggery, plantain, cassava production). The results of LP rotation restriction are similar to the profitability results using the economic rate of return (ERR) and suggest monoculture as profitable to only one activity (plantain), while the four remaining enterprises (maize, piggery, poultry, cassava) could be profitable if undertaken simultaneously or in association. Hence, the PEA-Youth Program should consider funding several activities at the same time, increasing the level of subsidized credit for short cycle agro-pastoral enterprises whereas productive credit should instead be revised downwards or eliminated completely for long cycle activities.
Highlights
In Cameroon like most African countries, population growth is on the increase and this is creating pressure on job offer that fails to meet the demand, unemployment rate remains high [1]
The general objective of the study is to estimate the optimal external funding level that maximizes the benefit of agro-pastoral enterprises supported by the Promotion of Entrepreneurship in Agropastoral Activities (PEA)-Youth Program by type of agricultural activity
This study uses an ex-post evaluation method to estimate the optimal external funding level that maximizes the benefit of agro-pastoral enterprises supported by the PEA-Youth Program by type of agricultural activity in the Centre region of Cameroon
Summary
In Cameroon like most African countries, population growth is on the increase and this is creating pressure on job offer that fails to meet the demand, unemployment rate remains high (about 75.8%) [1]. The promotion of youth entrepreneurship appears as a solution to create and multiply jobs, in the agricultural sector that is capable of absorbing a significant work force. The pace of growth of the population compared to domestic production, is a real challenge in terms of unemployment and inadequate agricultural supply. For this purpose, youth entrepreneurship in agriculture is encouraged and especially the creation of jobs for youth in the pastoral sector. The inability of the Government and the private sector to meet the expectations of the population, especially the youth in terms of jobs is likely to cause political and social instability
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