Friday, September 30, 2022

How youth entrepreneurs can tackle market failures: AfDB President

The AfDB had approved its ‘Job for Youth in Africa Strategy’ to help create 25 million direct and indirect jobs and empower 50 million youth over 10 years.

• May 18, 2021

The African Development Bank has called on governments and private sectors in Africa to grow, finance, and support large-scale youth-led businesses in the continent.

The bank also considered how to tackle “market failures” and “missing institutions” to help youth entrepreneurs succeed.

President of the AfDB, Akinwumi Adesina, said this at a virtual roundtable on ‘Scaling up Financing for Youth Entrepreneurship and Innovation in Africa’ on Monday.

The AfDB had approved its ‘Job for Youth in Africa Strategy’ to help create 25 million direct and indirect jobs and empower 50 million youth over 10 years.

The strategy aims to reduce barriers to youth innovation and entrepreneurship and address social and economic insecurity.

This is to prevent illegal migration, terrorism, and political instability among African youths.

The bank also established a multi-donor Youth Entrepreneurship and Innovation Trust Fund, funded with $40 million by Denmark, Sweden, Norway, Netherlands, Italy, and the UK.

Mr Adesina said, “We must grow, finance, and support large-scale successes of youth-led businesses in Africa. Existing financial institutions have failed to meet the needs of this rapidly growing population of the continent.

“This is due to lack of appropriate financing instruments; archaic credit risk assessments; focus on collaterals which the youth do not have; and lack of long-term financing horizon.

“That can deploy different types of financing instruments, from debt, equity, quasi-equity, and guarantees over the life cycle of the businesses of the youth.”

Mr Adesina added that the continent had several programmes directed at improving the skills of the youth by countries, supported by bilateral and multilateral finance institutions.

He noted that though such programmes might have helped to impart some skills to support entrepreneurship, the youth still faced financing challenges to turn their ideas into viable businesses.

“This will help to turn Africa’s demographic asset into an economic asset for Africa, and for that, we must nurture the businesses of young people.

“We must tackle market failures and missing institutions that prevent the youth entrepreneurs from reaching their potential,” he said.


We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette


Sanwo-Olu bans MC Oluomo’s rival transport union RTEAN in Lagos 

He added that suspension became necessary to prevent further acts of violence within the state.

SP Benjamin Hundeyin

Hot news Home top

Police arrest 22 suspects over Lagos motor park violence

The crisis erupted over control of the new park created under the Bridge at Iyana-Oba, Ojo area.


Iranian government arrests journalist, cracks down on protesters

Security forces used live ammunition, shotgun pellets and other metal projectiles, Amnesty said.


Kanu Heart Foundation conducts free heart screening in Enugu

Kanu said that the foundation was using the day to create awareness on the prevention and treatment of heart-related problems.


Civil Defence confiscates 21,600 litres of stolen petrol in Badagry

“The products were kept in barges…with the motive to reload them all into a boat and proceed on their journey to the Republic of Benin.”



Pilgrimage absconder arrested upon return to Nigeria

Mr Ezekiel was among the six pilgrims who absconded in Israel during the 2019 Easter Pilgrimage.