The African Development Bank (AfDB) has announced a significant $100 million investment to establish the Nigerian Youth Entrepreneurship Investment Bank, a move aimed at unlocking the potential of young entrepreneurs across Nigeria and the wider African continent. This initiative, unveiled by AfDB President Dr. Akinwumi Adesina during the 14th Convocation Lecture at the National Open University of Nigeria (NOUN) in Abuja, signals a powerful push towards economic diversification and job creation.
“The key to solving unemployment is entrepreneurship,” stated Dr. Adesina, emphasizing the critical role of young people in driving Africa’s economic future. He pointed to data from the Global Entrepreneurship Monitor (2020), which indicates that Africa leads globally in entrepreneurial activity, with 22% of its working-age population actively launching businesses.
The newly established Nigerian Youth Bank is designed to provide not just debt and equity financing, but also crucial technical assistance and business development services tailored to the unique needs of young entrepreneurs. Sectors identified for significant growth include agriculture, retail, services, and technology, with a particular focus on the burgeoning digital economy. Projections suggest Africa’s digital economy could add a staggering $180 billion to the continent’s GDP by 2025, and $712 billion by 2050.
Beyond the youth bank, the AfDB is also backing the Investment in Digital and Creative Enterprises (iDICE) program, which has secured $614 million in funding from a consortium including the Agence Française de Développement (AFD) and the Islamic Development Bank. This program aims to bolster small and medium-sized businesses within Nigeria’s creative and tech ecosystems, with projections indicating it could inject $6.4 billion into the Nigerian economy and generate over six million jobs.
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However, Dr. Adesina also highlighted a critical challenge: the education gap. “Africa lags dangerously behind in education, particularly in science and technology fields vital for the Fourth Industrial Revolution,” he warned. He cited stark statistics, noting that only 43% of African youth complete secondary education, compared to 98.9% in Japan. Furthermore, only 10% pursue higher education in Africa, versus 60% in Japan, with less than 25% of African university students in STEM fields.
To address this, the AfDB is collaborating with the African Union to establish a $300 million African Education, Science and Technology Innovation Fund, focused on building capacity in artificial intelligence, robotics, cloud computing, and other future-facing disciplines.
Dr. Adesina further called upon African governments to enact structural economic reforms, emphasizing the need for resilience through investments in energy infrastructure, mineral resource development, and technological innovation. “We must build economic buffers,” he urged, stressing the importance of self-reliance and strategic planning.
This multi-faceted approach, combining financial investment, educational support, and calls for structural reform, paints a comprehensive picture of the AfDB’s vision for a prosperous, youth-driven African economy.
