The African Development Bank has announced it is in talks with The Rwandan government for the creation of youth entrepreneurial investment banks in Kigali. This latest development comes after the validation for the creation of several youth entrepreneurial banks in Liberia and Ethiopia.
The African Development Bank (AfDB) and the Government of Rwanda are holding talks where, Rwanda will be among countries to host one among the many proposed youth entrepreneurship investment banks.
This was confirmed by the President of the AfDB, Dr. Akinwumi Adesina, during the closing press conference of AfDB’s Annual Meetings in the Kenyan capital Nairobi. AfDB board of directors has already approved a $16 million youth investment bank in Liberia and $12 million for Ethiopia, and a few more in the pipeline.
A youth investment bank would typically extend financing towards young people who are creating innovations and businesses with potential to generate jobs across the continent and potential for wealth creation. According to AfDB, the initiative to establish youth entrepreneurship investment banks is intended to provide both debt and equity financing for businesses of young people in African countries.
Adesina lamented that current systems of commercial banks and other financial institutions are not accommodating for young people. President Paul Kagame has been a strong advocate of increased investment in young people and at the 7th Edition of the Future Investment Initiative in 2023, he emphasized that investing in Africa’s youth and in the right way would quickly stimulate development on the continent.
However, AfDB noted that while 10 to 12 million young people enter Africa’s labour markets each year, only three million formal sector jobs are being created as Africa’s private sector has remained small and not industrialized enough to keep up with the labour market demand for decent jobs.
