IN a groundbreaking development, the African Development Fund (ADF) has given its approval for the establishment of a Youth Entrepreneurship Investment Bank (YEIB) in Liberia, aimed at unlocking the untapped business potential of young Liberians. An impressive sum of almost $16 million has been allocated to fuel this strategic initiative, focusing on empowering youth-led micro, small, and medium enterprises within Liberia’s flourishing agribusiness and allied sectors.
Anticipated to provide support to more than 30,000 youth-led businesses over the next 17 years, the YEIB holds the promise of becoming the catalyst for creating a robust financial ecosystem tailored specifically for youth entrepreneurship in Liberia, where such opportunities have been scarce.
‘The YEIB is not just an investment in young entrepreneurs; it is an investment in the future of Liberia,’ Benedict Kanu, African Development Bank Group Country Manager for Liberia, said. ‘By creating over 120,000 direct and indirect jobs and unlocking nearlyy $500 million in additional lending, the YEIB will not only lay the groundwork for potential future profitable investments but also significantly impact job creation and financial inclusion.’
The move comes as Liberia grapples with high youth unemployment rates, with the youthful population constituting more than 60% of the country’s citizens. Benedict Kanu highlighted the challenges faced by the nation, stating, ‘With about 45% of its youth not involved in employment, education, or training, Liberia is facing daunting youth employment challenges, with notable implications for social cohesion, fragility, and resilience.’
One of the primary drivers of this predicament has been the lack of adequate financial literacy, education, and entrepreneurial skills among Liberian youth. The absence of necessary support has had a profound impact on micro, small, and medium enterprises, essential contributors to the nation’s economic growth, with as many as 90 percent of them failing within their first year of operation.
To address these pressing issues, the Youth Entrepreneurship and Investment Bank project will provide crucial financial and non-financial services tailored to young entrepreneurs, aiming to ensure inclusivity, reduce vulnerabilities, and foster long-term sustainability.
The forthcoming establishment of the Youth Entrepreneurship Investment Bank holds great promise for enhancing institutional stewardship and oversight within Liberia’s youth entrepreneurship ecosystem, driving economic growth, and propelling overall development.
African Development Bank Group Financial Sector Development Acting Director, Ahmed Attout, hailed the launch of the YEIB project as a milestone moment, stating, ‘Fostering youth entrepreneurship lies at the heart of our mission. The Youth Entrepreneurship Investment Bank project is a testament to this commitment, reflecting an investment not just in our youth but also in Africa’s future. Beyond finances, this project is about capacity building, promoting innovation, and empowering our youth to drive economic transformation.’
With numerous investment opportunities in Liberia, particularly in the agriculture sector, which engages about 70 percent of the population, the YEIB is set to tap into potential sectors like IT, renewable energy, and light industrial manufacturing that offer promising avenues for further investment.
The implementation of the Youth Entrepreneurship Investment Bank project will be conducted in close collaboration with key stakeholders, including the government, commercial banks, and micro, small, and medium enterprises, as Liberia positions itself to embrace a transformative era of economic growth and youth empowerment.
