The African Development Bank Group (AfDB) and Agence Française de Développement (AFD) have reinforced their collaboration to stimulate youth entrepreneurship in Africa, recognising it as a crucial factor in addressing unemployment and inequality on the continent. The renewed partnership was formalised in a letter of intent signed by AfDB President Dr Akinwumi A. Adesina and AFD Chief Executive Officer Rémy Rioux following a strategic meeting at the AfDB’s headquarters in Abidjan.
This renewed partnership aims to enhance both organisations’ existing initiatives, including the African Development Bank’s Youth Entrepreneurship Investment Bank (YEB) initiative and AFD’s Choose Africa 2 programme. These programmes are designed to foster entrepreneurial ecosystems, enabling inclusive, private sector-led growth and promoting opportunities for the continent’s burgeoning young population. Africa’s youth, which comprises over 60% of its total population, faces significant barriers in accessing finance, with a staggering $331 billion finance gap for Small and Medium Enterprises (SMEs).
Through the YEB, the AfDB offers an entrepreneurial ecosystem designed to foster youth-led businesses, create job opportunities, and promote economic resilience. The Choose Africa 2 initiative seeks to support governments in shaping policies conducive to entrepreneurship, while addressing the financial and technical challenges faced by young entrepreneurs. The collaboration between these two institutions signals a concerted effort to transform Africa’s demographic dividend—more than 400 million young people—into tangible economic benefits.
Speaking at the signing, Dr Adesina emphasised the importance of youth investment, stating, “The greatest risk is not investing in youth. The future of Africa is on the continent.” He commended the AFD for its commitment to job creation in Africa, noting that the partnership is crucial in creating opportunities for young Africans, particularly in Côte d’Ivoire, Benin, and Togo. AFD’s efforts under Choose Africa 2, in conjunction with the AfDB’s youth investment programmes, are expected to bolster job creation and economic resilience in these countries.
Rioux, echoing the urgency of addressing Africa’s youth employment challenge, highlighted that approximately 20 million young people enter the continent’s workforce each year. He stressed the importance of creating economic opportunities for these young people to reduce the risks associated with economic migration, which has become a pressing issue across the continent. Rioux also praised the AfDB’s Affirmative Finance Action for Women in Africa (AFAWA) initiative, which has made remarkable strides in providing financing for women-led businesses.
The renewed partnership between the AfDB and AFD comes at a pivotal time as Africa faces the dual challenges of unemployment and economic migration. With over half of Africa’s Micro, Small, and Medium Enterprises (MSMEs) unable to secure the necessary credit to sustain growth, the collaboration between these two institutions will be instrumental in bridging the finance gap and creating a more conducive environment for youth entrepreneurship.
