Faced with rapid population growth and increasing youth unemployment, African countries are intensifying their efforts to promote youth entrepreneurship as a sustainable solution to this challenge. According to the Africa Youth Employment Clock, around 121 million young people aged 15 to 35 will be unemployed or not in education or training in 2025, an increase of 2.8 million compared to 2024.
One of the major initiatives in this direction is led by the African Development Bank (AfDB), which disbursed a record $577 million in loans and grants last year to support youth-led businesses and job creation. At least 13 countries, including Tanzania, Somalia and South Sudan, have benefited from this funding. For example, in September, Tanzania received a $130 million loan to support youth-led agricultural businesses, while South Sudan secured a $5 million grant for youth-led businesses.
Dr. Akinwumi Adesina, President of the AfDB, stressed the importance of investing in youth entrepreneurship, saying “the biggest risk is not investing in young people.” He reiterated the bank’s commitment to increasing funding for youth-led initiatives.
At the same time, countries like Kenya have launched dedicated funds to finance small businesses and young entrepreneurs who face difficulty accessing traditional bank loans. Kenya has set up a fund of $385 million to support these initiatives. For its part, Tanzania has allocated $110 million to support 6,000 young entrepreneurs in the agribusiness sector as part of its “Building a Better Tomorrow: Youth Initiatives for Agribusiness” program.
-These efforts reflect a growing recognition of the crucial role entrepreneurship plays in creating jobs and stimulating economic growth in Africa. However, despite these initiatives, the youth unemployment rate continues to rise, highlighting the need for effective policy implementation and increased support for young entrepreneurs.
Morocco
