The African Development Bank (AfDB) has sanctioned a $100 million loan aimed at enhancing access to finance for youth and women-led small and medium enterprises (SMEs) under the Nigeria Youth Entrepreneurship Investment Bank (YEIB) initiative. This notable program seeks to stimulate economic growth and job creation by fostering collaboration among critical stakeholders to back young entrepreneurs.
As a key player in the ecosystem, the YEIB will collaborate with the Federal Government of Nigeria, the Nigeria Sovereign Investment Authority (NSIA), and the Development Bank of Nigeria (DBN). Alongside the AfDB’s $100 million, the initiative will receive additional funding—$25 million from the DBN and $5 million from the NSIA.
The project is centered around two primary pillars: setting up the YEIB Investment Management Company and establishing three support vehicles: the Equity Investment Fund (EIF), the Ecosystem Development Fund (EDF), and the Credit Guarantee Facility (CGF). These mechanisms will provide essential financial and non-financial assistance to youth and women-led enterprises.
The EIF will cater to early-stage and high-growth companies.
The EDF will grant funding for business development services and youth-led startups.
The CGF, administered by Impact Credit Guarantee Limited (a DBN subsidiary), will help reduce risks for SMEs and enhance their credit access.
By developing entrepreneurial talent and mitigating risks for young business owners, the YEIB initiative aims to turn innovative ideas into viable, long-term ventures, helping to tackle Africa’s rising youth unemployment issue. The program is expected to generate over 161,000 direct jobs—40% of which will be for women—and 1.4 million indirect jobs, with 35% designated for women. Furthermore, it will support more than 38,000 youth-led businesses through financial services and an additional 38,000 via non-financial support, ensuring at least 40% of the beneficiaries are women.
Dr. Abdul Kamara, AfDB’s Director General for Nigeria, described the initiative as “a game-changer” for addressing youth unemployment and bridging gender disparities through tailored entrepreneurial assistance.
Similarly, Ahmed Attout, Director of the Bank’s Financial Sector Development Department, emphasized the initiative’s far-reaching effects. “This initiative goes beyond isolated project solutions by building institutional frameworks that elevate Nigerian youth entrepreneurs as a promising investment category,” he remarked.
Nigeria’s YEIB forms part of a broader strategy to establish similar banks across Africa. In 2023, the AfDB approved $16 million for Liberia’s YEIB, followed by $43 million in funding for Ethiopia’s initiative in May 2024.
This pioneering program is poised to unlock new possibilities for Africa’s young entrepreneurs, empowering them to drive economic growth across the continent.
