AfDB, AFD cement partnership to support youth entrepreneurship in Africa
Abidjan, Cote d'Ivoire (PANA) - The African Development Bank Group and Agence Française de Développement (AFD) have announced they would renew their joint efforts to catalyse resources to boost entrepreneurship in Africa as a crucial driver of economic development, tackling unemployment and reducing inequality.
AfDB President Dr Akinwumi A. Adesina and AFD Chief Executive Officer Rémy Rioux signed a letter of intent on behalf of their institutions following a meeting in Abidjan, a press release by the Bank said.
Through its Youth Entrepreneurship Investment Bank (YEB) initiative, the AfDB is providing an ecosystem and entrepreneurial services, promoting inclusive, private sector-led economic growth, and creating opportunities for young entrepreneurs.
AFD’s Choose Africa 2 Programme seeks to deepen its impact by fostering public policy dialogue, supporting governments in creating a conducive ecosystem for entrepreneurship development, and addressing the technical and financial support needs of entrepreneurs, the press release said.
“Together, the organisations through these initiatives and others, will collaborate closely to support and advocate for entrepreneurship in Africa and strengthen entrepreneurial ecosystems,” it added.
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 “which testifies to our 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,” Adesina said.
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.
He commended the work of the AfDB, especially the Affirmative Finance Action for Women in Africa (AFAWA) initiative which has made “spectacular achievements by financing women”. Under partnership between Choose Africa 2 and the AfDB’s youth investment banks initiative, AFD is developing instruments that will benefit and create opportunities for youth in Cote d’Ivoire, Benin and Togo, Rioux said.
Africa is home to the youngest population in the world with over 60% of people on the continent below 25 years.
The youth population dynamic is fuelling 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 Micro-, Small and Medium-sized Enterprises (MSMEs) unable to access the credit they need for growth and sustainability.
-0- PANA MA 13Oct2024
