This is part of a blog series introducing Investing and Partnering with Youth for Peace (IPYP) and the work of our members. To see the IPYP Inception Report, click here. This blog highlights perspectives from the private sector in Kenya on the business case for partnering with youth for peace.
“Peace is not the absence of conflict, but the presence of justice.” – Martin Luther King Jr.
Investing in youth and peacebuilding is good business
In our world, rife with conflicts and challenges, meaningfully engaging young people in peacebuilding is both a moral imperative and a strategic necessity. Youth are the architects of our future, active agents now, and their empowerment is pivotal for lasting peace, essential to both the current and future economic opportunity for businesses. This blog delves into why the private sector should invest in youth and peace, bolstered by compelling evidence and real-life Kenyan examples.
In 2007, Kenya was plunged into a difficult political situation that emanated from a contested election leading to a historical moment of conflict and post-election violence. Besides the backdrop of this unwelcoming political situation was a brewing social and economic depression particularly among young people. Amongst the most pressing challenges of the time was the sprouting unemployment and underemployment. Reports indicate that 70 percent of those who engaged in post-election violence were youth who were easily mobilized, alienated and disengaged and had few opportunities available for employment or to start businesses, or avenues to voice their grievances.
The post-election violence had far-reaching economic consequences, including loss of life, damage to infrastructure, declines in key sectors like tourism and agriculture, reduced investor confidence, inflation, and budgetary strains. Two key players bore the brunt of this loss, the private sector and the youth. The NSE (Nairobi Stock Exchange) experienced a decline of 277 points amounting to a 5% decrease in value. This decline signaled a diminished investor confidence in the market. Also, the Kenyan currency depreciated to depths of close to 10% within a few days. The violence led to the destruction of businesses, properties and shortage of essential goods particularly in affected areas like Rift Valley and Nairobi’s slums. This resulted in a significant number of job losses for thousands of people, including youth.
This provided a “Damascus moment” for the private sector in Kenya to realize its role in investing in youth. Several initiatives to support youth empowerment were put in place by both the Government of Kenya and private sector actors. Under the co-ordination of the Kenya Private Sector Alliance (KEPSA) a Youth Private Sector Board was formed, the Kenya Youth Empowerment Project was launched and a private sector led peace initiative dubbed Mkenya Daima was rolled out under KEPSA foundation. The situation has never been the same since then.
The intersection of youth, peace, and the private sector is not happenstance, It’s a potent formula for sustainable development.
While businesses have a clear view of the importance of peace and stability, and the roles of youth in the same, proactivity is paramount in ensuring investments have both commercial and sustainable development outcomes with young people playing a central role in the intersection. Peace is the cornerstone of equitable economic growth and prosperity. Stable communities enable businesses to operate smoothly, fostering growth and preventing disruptions caused by conflicts, which can be catastrophic. Businesses that actively and genuinely support peace initiatives not only earn respect and admiration from consumers, partners, and stakeholders but also bolster their reputation. Demonstrating a commitment to social responsibility enhances a company’s brand image, potentially leading to increased customer loyalty and support. However, this commitment to social responsibility should be authentic and fair, going beyond surface-level engagement.
Young people represent a significant portion of the global workforce. By investing in their skills and well-being, businesses cultivate a skilled workforce for the future, benefiting both their bottom line and the nation’s economy. Empowering young people with opportunities and employment boosts their purchasing power, expanding markets and fueling business growth. Companies that tap into this growing market early gain a competitive edge by understanding the needs and aspirations of the youth demographic. Young people often possess a wealth of fresh ideas, creativity, and innovation. Engaging them in peace initiatives can yield innovative solutions to societal problems, benefiting both businesses and society at large. Creating an environment that encourages youth to think creatively allows businesses to harness their problem-solving potential. For example, Google and Microsoft have been at the forefront of tapping into young talent. They offer numerous programs, including internships, scholarships, and coding competitions, to engage and empower young individuals interested in technology and innovation. This approach has not only helped them access fresh ideas but has also contributed to their continued success in the tech industry.
The private sector in Kenya is ahead of the curve in advancing the role of young people in peacebuilding through various economic empowerment efforts.
When young people and marginalized communities are provided with opportunities and economic empowerment, they become active participants in the nation’s growth. Their inclusion expands the benefits of peace, as equitable access to resources and opportunities alleviates social disparities, promotes stability, and fosters a more harmonious society.
Companies, spanning industries like banking, telecommunications, and manufacturing, offer employment and training programs tailored for the youth. These initiatives provide young people with opportunities to acquire vital skills and workforce experience. Businesses, especially SMEs support youth entrepreneurship through mentorship, access to capital, and business development services. This empowers young entrepreneurs to initiate and expand their businesses, thereby contributing to economic development and stability.
With the increased need to address skills mismatch, some businesses invest in vocational training and skill development programs designed to meet the specific needs of young people. Siemens operates a program called “Siemens Education” which focuses on building vocational and technical skills in young people. Through partnerships with educational institutions and organizations, Siemens provides training and apprenticeship opportunities in fields like engineering and manufacturing. Such programs equip youth with the skills required for particular job roles and industries, bolstering their employability.
Private sector banks and financial institutions are actively working to enhance young people’s access to financial services. This comprehensive effort includes the development of youth-friendly banking products, specialized savings accounts, and financial literacy programs tailored to the needs of young individuals. By providing improved financial access, these initiatives empower young people to save, invest, and secure their financial futures. This, in turn, reduces economic vulnerabilities that can be a contributing factor to conflict. Collaborative efforts between the private sector and youth-led civil society can further amplify the positive impact of these initiatives, fostering peace and economic stability. As the IPYP inception report highlights “It is not the amount of capital that determines peacefulness, but how and to/with whom it is deployed, developed, and circulated.”
Kenya’s thriving technology sector offers opportunities for youth employment and innovation. Private tech companies engage young programmers, designers, and entrepreneurs in developing digital solutions, mobile applications, and innovative services.
Safaricom’s “Ndoto Zetu” Initiative: Safaricom, Kenya’s top telecom company, empowers youth through community project grants, addressing unemployment and boosting the local economy. The initiative focuses on partnering with Kenyans to implement health, education and economic empowerment projects. Since its inception the program has reached 3 million Kenyans. Ndoto Zetu aims to support Kenyans who are keen to make an impact in their communities through social investments. Kenyans are asked to share their dreams and aspirations that they hope to achieve in the areas of health, education and economic empowerment.
While the advantages of Kenya’s private sector involvement in youth and peace initiatives are evident, it’s essential to acknowledge that businesses can inadvertently contribute to conflict if they do not adopt conflict-sensitive practices. These practices extend beyond basic human rights considerations to encompass peace-positive actions, such as fair wages, labor rights, and equitable economic development. It’s crucial to recognize that peace is both a political and social concept. On the political front, businesses can play a role in conflict resolution through negotiation, although this is relatively rare. On the social aspect of peace, businesses can make significant contributions through their supply chains by promoting inclusivity, fair wages, employee ownership schemes, and strong social policies.
However, several challenges and pitfalls need to be navigated in this journey. Businesses often prioritize immediate financial gains over long-term peacebuilding investments, making it challenging to convince stakeholders to commit to sustained efforts. To address this, businesses should stress the long-term stability and growth opportunities linked with peace. Determining the right resource allocation is complex and requires a deep understanding of local contexts and youth-specific needs. Collaboration with peace and development experts, including youth-led civil society, can assist companies in making informed decisions about resource allocation. Assessing the impact of peace initiatives is often difficult due to intangible outcomes that conventional metrics struggle to capture. To address this, we need to grow the evidence base.
A Call to Action: Growing the evidence base and telling the stories
To strengthen the business case for partnering with youth for peace, we need collective action. It’s imperative to not only tell stories but to bolster our arguments with rigorous research and data collection, showcasing the compelling connection between peace, youth involvement, and business success. Robust evidence can sway even the most skeptical stakeholders.
Companies should work closely with monitoring and evaluation experts to create suitable measurement tools and indicators that encompass the holistic impact of their initiatives and use qualitative as well as quantitative measures. Companies can take a proactive stance by partnering with universities and research institutions to conduct studies that illuminate the transformative benefits of their peace initiatives.
One exemplary organization leading the way in this space is Search for Common Ground (SFCG), whose pioneering Social Return on Investment (SROI) work demonstrates how investing in peace can yield substantial returns for businesses. By adopting SROI methodologies, companies can quantify the social and economic benefits of their peace initiatives, reinforcing the argument that it is indeed good business to be peace-positive.
Advocating for policies that incentivize private sector engagement in peacebuilding is crucial. Governments can play a pivotal role by offering tax incentives, recognition, and support to businesses involved in peace initiatives. Additionally, companies can forge industry coalitions to champion these policies on both national and international stages.
It is paramount to encourage businesses to embrace corporate responsibility initiatives that center on youth and peace, not merely as charitable endeavors but as integral components of their core strategies. Rather than treating peace as an isolated CSR effort, businesses should embrace the concept of shared value. By integrating peace-positive practices into their core operations, companies not only fulfill their social responsibility but also enhance their competitiveness and profitability.
Sustaining peace investments beyond a specific initiative’s duration poses a significant challenge. To achieve this, businesses must strategize for lasting change, including establishing sustainable partnerships with local organizations and government agencies capable of upholding peace efforts over the long term.
In conclusion, the private sector’s investment in youth and peace is a mutually beneficial proposition and is good business. By cultivating an environment conducive to peace and actively involving young people, businesses contribute not only to their financial bottom line but also to a more prosperous and harmonious society.
As the IPYP inception report reveals, the private sector has a role in advocating for civic space for young people to engage in peacebuilding work, including them and their priorities in all social impact work including through financing their work and through their core business practices. Lastly business can adopt conflict sensitive and peace positive investment criteria and due diligence processes and advance the field of ‘peace finance’. Kenya’s success stories underscore the potential impact of private sector peace initiatives, underscoring the urgency of scaling up these endeavors.
We invite you to join the movement for a more peaceful and prosperous world by engaging with private sector peace initiatives and youth empowerment efforts. If you’re interested in contributing to these initiatives or exploring partnership opportunities, please reach out to the Kenya Private Sector Alliance (KEPSA) [email protected] to make a positive impact in the implementation of Investing and Partnering with Youth for Peace (IPYP) in Kenya.
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