The partnership aims to address the significant financing gap facing small and medium-sized enterprises (SMEs) on the continent, which is estimated at $331 billion.
Both institutions have existing initiatives to promote youth entrepreneurship. The AfDB’s Youth Entrepreneurship Investment Bank (YEIB) provides an entrepreneurial ecosystem and services, while AFD’s Choose Africa 2 program supports governments in creating conducive environments for entrepreneurship development.
By combining their efforts, the AfDB and AFD seek to strengthen entrepreneurial ecosystems and provide technical and financial support to young entrepreneurs. This partnership is particularly crucial given Africa’s large and youthful population, which presents both opportunities and challenges for economic growth.
AfDB President Akinwumi Adesina emphasized the importance of investing in youth, stating that the greatest risk is not investing in them. He highlighted the need to create job opportunities and support youth-led businesses. Rémy Rioux, CEO of AFD, stressed the importance of focusing on the economic well-being of African youth to avoid the pitfalls of economic migration. He praised the AfDB’s Affirmative Finance Action for Women in Africa (AFAWA) initiative and announced AFD’s plans to develop instruments that will benefit young people in Côte d’Ivoire, Benin, and Togo.
ODL/te/fss/abj/APA