The African Development Bank Is Set To Create Investment Banks To Support Young Entrepreneurs
The African Development Bank Is Set To Create Investment Banks To Support Young Entrepreneurs. The African Development Bank (AfBD) is in the early stages of developing a proposal for Youth Entrepreneurship Investment Banks in its member countries, including South Africa, to help youngsters start businesses and create jobs.
Just like South Africa, the biggest obstacle for SMEs across the continent is access to financing from traditional financial institutions like banks, as well as a lack of continued support and knowledge to help them scale. While Sub-Saharan Africa has been the second fastest-growing region in the world over the last two decades, its weak spots include a staggering 83% of the youth who enter the job market and do not find employment.
AfBD president Akinwumi Adesina told MSN News that, “Africa must move beyond youth empowerment to youth investment. It is time to put the capital of Africa at risk on behalf of the youth. It is time to create new financial ecosystems that support the businesses of the youth, grow them and unlock… the demand of financing (needed) by millions… This will help turn Africa’s demographic asset into an economic asset for the continent.”
Arancha González Laya, who is Spain’s Minister of Foreign Affairs, European Union and Cooperation, agreed that the banks were critical. She told MSN News that 20 million jobs needed to be created in Africa each year to absorb the youth into the job market. “No government can create jobs at that scale. It will have to be private investment and entrepreneurship”. She said other obstacles included changing the criteria for client risk, better economic education and intra-Africa trade, and building capacity.
The African Development Bank Group (AfDB or ADB) is a multilateral development finance institution headquartered in Abidjan, Côte d’Ivoire, since September 2014. The AfDB is a financial provider to African governments and private companies investing in the regional member countries (RMC). The AfDB was founded in 1964 and comprises three entities: The African Development Bank, the African Development Fund and the Nigeria Trust Fund.
