In a historic step toward economic inclusion for young Liberians who make up a majority of the country's population, Liberia has become the first African nation to launch a Youth Entrepreneurship Investment Bank (YEIB).
The initiative, a $16 million program spearheaded by the African Development Bank (AfDB), was officially unveiled Tuesday by AfDB President Dr. Akinwumi A. Adesina during a high-level expanded cabinet meeting and honoring ceremony in Monrovia led by President Joseph Nyuma Boakai.
With over 71 percent of Liberia's 5.7 million people under the age of 35, Dr. Adesina said the launch of the YEIB is not just a financial intervention, but a transformative social movement designed to empower youth to take ownership of their economic futures.
"This is a day that brings hope to the youth of Liberia," Dr. Adesina said. "A day that sends a powerful message: invest in the youth of Liberia. The time has come to unleash their entrepreneurial capacities."
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Adesina painted a sobering picture of the reality facing Liberia's youth, pointing to a 76% underutilization rate due to unemployment and the dominance of low-paying informal jobs. "Many young people have gone to school, gotten degrees, and are seeking employment--but they have no jobs," he stated.
Quoting President Boakai's remarks at a Cabinet meeting in March 2025, Adesina reiterated the Liberian leader's warning: "If the government fails to tackle these challenges, we will be in trouble."
One major issue, Adesina noted, is that only 55% of youth in Liberia have completed secondary or higher education. This educational gap, combined with a mismatch between academic training and market needs, has rendered most young Liberians unprepared for jobs of the present and future. He emphasized that the lack of digital and entrepreneurial skills particularly hinders youth participation in the fourth industrial revolution.
Adesina was blunt about the urgent need to shift the current trajectory: "Liberia's youth cannot be left to hustle," he said. "Everything the government does must focus on creating jobs for the youth and supporting them to create jobs for themselves."
He outlined the evolution of the AfDB's engagement in Liberia, citing the Youth Entrepreneurship and Employment Project completed three years ago. That initiative developed entrepreneurship curricula, established an entrepreneurship center at Nimba County University, and offered seed funding through business plan competitions.
However, Adesina noted that despite these efforts, the lack of sustainable financing left many young entrepreneurs stranded. "The lesson is clear: Simply providing technical and vocational training is not enough. A financial ecosystem is needed to support young entrepreneurs."
The new Youth Entrepreneurship Investment Bank aims to bridge the general gap in youth access to finance but also to fill what Adesina called the "missing middle" in Liberia's financial sector. "The large commercial banks are too big, while the microfinance institutions are too small," he said, referring to loan sizes. "Yet, entrepreneurs in Liberia need equity, not just loans."
Structured as a management holding company, the YEIB will include three special-purpose vehicles: an early-stage equity fund to provide long-term capital for startups and SMEs; a technical assistance fund to offer training, financial literacy, and investment readiness programs; and a credit guarantee fund to help youth-owned businesses access loans without burdensome collateral.
"Sometimes when a young person walks into a bank and sees someone like me with a bow tie, all [loan officers] see is risk," Adesina quipped. "They ask for 40 years of tax returns when you're only 18. That must change."
The bank will prioritize sectors with high growth potential for youth, including agriculture, agribusiness, digital services, tourism, and mining.
The YEIB is projected to reach over 30,000 youth-led businesses, provide direct financing to 6,000 of them, and create more than 120,000 jobs. It is also expected to generate $18 million in tax revenues and catalyze an additional $500 million in lending for youth-run enterprises.
Finance and Development Planning Minister Augustine Ngafuan and AfDB Executive Director Rufus Dakote were commended for pushing the YEIB project through the AfDB board. "He did a fantastic job," Adesina said of Dakote.
The bank will be a government-enabled but not government-run entity. The government will hold an initial majority stake, which will diminish over time to allow increased private sector ownership. The governance model will be led by independent private sector leaders serving on the board of directors.
The project implementation unit is already functional, and recruitment of the CEO and management team is underway. Licensing is expected by September 2025, with full operations set to commence in early 2026.
AfDB also announced that it will establish Business Innovation and Development Centers nationwide to complement YEIB activities and further support SMEs.
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"I am proud that Liberia is the first country in Africa to launch this kind of bank," Adesina stated. "This should serve as a model for other countries to emulate. Investing in youth is no longer optional; it is an urgent necessity."
He acknowledged the MasterCard Foundation for its technical support in designing the YEIB model in Liberia.
Closing his remarks with a sense of optimism, Adesina said: "We are at a historic moment that will change the future of Liberia's youth. I can hear the sounds of rain for the youth of Liberia--rain of hope, rain of opportunity, rain of success."
"Let us turn misery into hope and hope into wealth for the youth. Let us create youth-based wealth all across Liberia. And let us do it together."
The event was attended by a cross-section of national and international stakeholders, including the Executive Governor of the Central Bank of Liberia, ministers of government, traditional leaders, diplomats, banking executives, youth entrepreneurs, civil society representatives, and performing artists. The strong presence of Liberia's three branches of government underscored the importance of the occasion.
