THE African Development Bank (AfDB) and the official French development agency, Agence Française de Développement (AFD), have renewed their partnership to boost youth entrepreneurship across Africa, recognising it as a key driver of economic growth, job creation, and inequality reduction.
AfDB President Dr Akinwumi A. Adesina and AFD Chief Executive Officer Rémy Rioux signed a letter of intent during a recent meeting at the AfDB headquarters in Abidjan, reaffirming their commitment to catalyse resources for entrepreneurship development on the continent.
Through the AfDB’s Youth Entrepreneurship Investment Bank (YEB) initiative, the bank is working to build an entrepreneurial ecosystem that promotes private sector-led growth, providing services and opportunities to young entrepreneurs. AFD’s Choose Africa 2 programme complements these efforts by fostering public policy dialogue, supporting governments in creating a favourable environment for entrepreneurship, and addressing the financial and technical needs of small businesses.
Both institutions will work closely to strengthen Africa’s entrepreneurial ecosystems, aiming to transform the continent’s demographic dividend into economic benefits. Africa’s youth population, with over 400 million young people, presents a significant opportunity for growth if adequately supported.
‘We will put our risk capital to benefit the youth,’ said Adesina. ‘The greatest risk is not investing in young people. The future of Africa is on this continent.’
Rioux echoed this sentiment, highlighting the need to focus on economic opportunities for Africa’s youth to reduce the pressure of economic migration. He praised AfDB’s initiatives like the Affirmative Finance Action for Women in Africa (AFAWA), which has made impressive strides in financing women entrepreneurs.
Under their renewed partnership, Choose Africa 2 and AfDB’s youth investment banks will work together to create opportunities for young people in Côte d’Ivoire, Benin, and Togo.
Africa’s population is the youngest in the world, with over 60 percent under the age of 25. While this fuels a rise in youth-led businesses, many still face significant financial challenges. Africa’s finance gap for Small and Medium Enterprises (SMEs) stands at $331bn, with over half of these businesses struggling to access the credit needed for growth and sustainability.
This renewed collaboration between AfDB and AFD aims to close that gap, ensuring that Africa’s young entrepreneurs have the support and resources they need to thrive.
Credit: Reuters
