Youth Entrepreneurship In Africa Receives ADB, AFD Boosts

Youth entrepreneurship in Africa is set to enter a new paradigm following the collaboration of the African Development Bank (ADB) and the Agence Française de Développement (AFD).

The two organisations agreed on Friday to renew their joint efforts to catalyse resources to boost entrepreneurship in Africa as a crucial driver of economic development, tackling unemployment and reducing inequality.

A release from the ADB cites the President Dr Akinwumi A. Adesina and Agence Française de Développement Chief Executive Officer Rémy Rioux as signing a letter of intent on behalf of their institutions following a meeting in Abidjan.

The release said that the ADB, through its Youth Entrepreneurship Investment Bank (YEB) initiative, would provide an ecosystem and entrepreneurial services, promoting inclusive, private sector-led economic growth, and creating opportunities for young entrepreneurs.

On the other hand, AFD’s Choose Africa 2 program would seek to deepen its involvement in using public policy dialogue, supporting governments in creating a conducive ecosystem for entrepreneurship development, and addressing the technical and financial support needs of entrepreneurs.

Noting the challenge of transforming the demographic dividend of Africa’s over 400 million youth into economic dividends, Adesina said he was fully satisfied with the cooperation with AFD, saying this testified to the ADB’s commitment to job creation for the continent of Africa.

“We will be putting our risk capital to the benefit of youth. The greatest risk is not investing in youth. The future of Africa is in on the continent,” Adesina said.

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sAlso commenting, Rioux said it was imperative to emphasise the economic welfare of African youth to avoid the pitfalls of economic migration.

“Every year 20 million youth – the population of Senegal – join the workforce in Africa,” he noted, commending the work of the ADB, especially the Affirmative Finance Action for Women in Africa (AFAWA) initiative which has made “spectacular achievements by financing women,”

He said under partnership between Choose Africa 2 and the African Development Bank’s youth investment banks AFD is developing instruments that would  benefit and create opportunities for youth in Cote d’Ivoire, Benin and Togo, Rioux said.

Rioux was accompanied by AFD’s Director of Cabinet Tristan Mouline, Lionel Yondo, Regional Director for the Gulf of Guinea, Adrien Haye, director of the Cote d’Ivoire office and Noor Mountassir, Côte d’Ivoire country office head. From the African Development Bank, Dr Adesina was accompanied by members of the senior management team. Jerome Bertrand-Hardy, who has been seconded to the Bank from AFD, also attended.

The release noted that Africa is home to the youngest population in the world with over 60% of people on the continent below 25 years.

It said the youth population dynamic is fueling the rise of youth-led businesses but, significant hurdles remain. Africa’s finance gap for Small and Medium Enterprises stands at $ 331billion, with over half of the MSMEs unable to access the credit they need for growth and sustainability.