The African Development Bank Group and Agence Française de Développement(AFD) on Friday 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.
African Development Bank President Dr Akinwumi A. Adesina and Agence Française de Développement Chief Executive Officer Rémy Rioux signed a letter of intent on behalf of their institutions following a meeting in Abidjan, home to the Bank's headquarters.
Through its Youth Entrepreneurship Investment Bank (YEB) initiative, the African Development Bank is providing an ecosystem and entrepreneurial services, promoting inclusive, private sector-led economic growth, and creating opportunities for young entrepreneurs. The Agence Française de Développement's Choose Africa 2 program, 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.
Together, the organisations through these initiatives and others, will collaborate closely to support and advocate for entrepreneurship in Africa and strengthen entrepreneurial ecosystems.
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. The future of Africa is in on the continent," Adesina said.
Remy 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 African Development Bank, 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 will 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.
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 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.
