In a groundbreaking development, African Development Fund (ADF), the concessional lending arm for the African Development Bank (AfDB) Group, has approved $16 million for the creation of a Youth Entrepreneurship Investment Bank (YEIB) in Liberia.
A statement issued on the AfDB website said the fund was
approved to unleash the business potential of young Liberians.
According to the AfDB Group Country Manager for Liberia,
Benedict Kanu, approximately $16 million has been allocated to finance this
strategic initiative.
Kanu said the initiative was meant to target youth-led
micro, small, and medium enterprises in Liberia’s burgeoning agribusiness and
allied sectors.
“The YEIB is anticipated to support over 30,000 youth-led
businesses during the next 17 years. “The YEIB will be the initial catalyst for
developing a financial ecosystem for youth entrepreneurship in Liberia, which
is currently non-existent.
“By creating 120,000 direct and indirect jobs and unlocking
approximately $500 million in additional lending, it can lay the groundwork for
future, potentially more profitable investments.
“The YEIB is a long-term investment with a significant
impact on job creation and financial inclusion,” he said.
According to Kanu, Liberia’s youthful population, accounting
for over 60 per cent of its citizens, is experiencing high unemployment meaning
many young people do not get the opportunities they deserve.
“With about 45 per cent of its youths not involved in
employment, education, or training, Liberia is facing daunting youth employment
challenges.
“With notable implications for social cohesion, fragility,
and resilience,” Kanu added.
He said a primary cause of this was the absence of adequate
financial literacy, education, and entrepreneurial skills.
“ The micro, small, and medium enterprises that are vital
contributors to Liberia’s economic growth are particularly the hardest hit,
with up to 90 per cent failing within the first year of operation.
“The bank project will help mitigate these issues by
providing financial and non-financial services for young entrepreneurs,
ensuring inclusion, reducing vulnerabilities, and preparing for long-term
sustainability.
“The establishment of a YEIB in Liberia will enhance
institutional stewardship and oversight of the youth entrepreneurship
ecosystem, thus helping to drive economic growth and development,” he added.
Also, the AfDB’s Financial Sector Development Acting
Director, Ahmed Attout, said the inauguration of the YEIB project in Liberia was
a landmark moment.
“Fostering youth entrepreneurship is at the heart of our
mission. The YEIB project is a testament to this commitment; an investment in
our youths is an investment in Africa’s future.
“And beyond finances, the project is about capacity
building, promoting innovation, and empowering our youths to drive economic
transformation,” Attout said.
Liberia presents numerous opportunities for investment,
especially in the agriculture sector which engages about 70 per cent of the
population.
Also, sectors such ad Information Technology, renewable
energy, and light industrial manufacturing offer promising avenues for
investment.
The implementation of the YEIB will be carried out in close
collaboration with a range of key stakeholders, including the government,
commercial banks, and micro, small, and medium enterprises.
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