The African Development Bank (AfDB) has approved a $100 million loan to boost access to finance for youth and women-led small and medium enterprises (SMEs) through the Nigeria Youth Entrepreneurship Investment Bank (YEIB) initiative. This landmark initiative aims to drive economic growth and job creation by fostering collaboration among key stakeholders to support youth entrepreneurs.
The YEIB will work alongside the Federal Government of Nigeria, the Nigeria Sovereign Investment Authority (NSIA), and the Development Bank of Nigeria (DBN). The AfDB’s $100 million investment will be complemented by an additional $25 million from the DBN and $5 million from the NSIA.
The initiative has two main focuses which are establishing the YEIB Investment Management Company and creating three support mechanisms: (an Equity Investment Fund (EIF), an Ecosystem Development Fund (EDF), and a Credit Guarantee Facility aka. CGF ). These vehicles will provide critical financial and non-financial support for youth and women-led businesses.
The EIF will focus on early-stage and high-growth enterprises.
The EDF will offer grants for business development services and youth-led ventures.
The CGF, managed by Impact Credit Guarantee Limited (a DBN subsidiary), will help de-risk SMEs and improve their access to credit.
Nigeria’s YEIB is part of a larger effort to establish similar banks across Africa. In 2023, the AfDB approved $16 million for Liberia’s YEIB, followed by a $43 million approval in May 2024 for Ethiopia’s initiative.
The Young Entrepreneurs Investment Bank (YEIB) initiative is designed to empower young African entrepreneurs by providing them with the necessary resources and support. By reducing financial risks and offering mentorship, the initiative aims to help young people turn their innovative ideas into successful businesses.
This project is expected to have a significant impact on Africa’s job market, creating over 1.4 million jobs, both directly and indirectly. Notably, at least 40% of these jobs will be filled by women, addressing gender inequality in the workforce.
Additionally, the YEIB will provide financial and non-financial support to over 38,000 young entrepreneurs, with a focus on women’s empowerment.
Dr. Abdul Kamara, the AfDB’s Director General for Nigeria, believes that this initiative has the potential to revolutionize the way we address youth unemployment and gender disparities in Africa. By fostering entrepreneurship, the YEIB can create a more prosperous and equitable future for the continent.
Related articles
- GEAPP to Tackle Nigeria’s Power Crisis with Solar Mini-Grids
- Heirs Technologies launches free Supplementary Technical Engineering Program (STEP)
Blessed is a dedicated grants and business funding researcher with a keen eye for uncovering opportunities. With a background in digital marketing and social media management, she brings a unique perspective to her work. Blessed is passionate about helping individuals and businesses secure the funding they need to achieve their goals. Her expertise and dedication make her a valuable resource for anyone seeking financial support.
