The African financial system has long failed to meet the needs of its young population, according to Dr. Akinwumi Adesina, President of the African Development Bank (AfDB).
Addressing a gathering of industry leaders, Adesina underscored the urgent need to create a financial framework that actively supports the continent’s youth, who make up over 465 million individuals aged between 15 and 35.
“The entire banking and financial system is not designed with young people in mind. Our commercial banks have failed the youth of Africa,” Adesina declared. “We cannot be surprised that young people are leaving the continent for better opportunities when we haven’t created the financial infrastructure to help them stay and thrive.”
The AfDB president emphasized that Africa’s youth should be seen as the continent’s greatest asset.
He pointed out that the continent’s demographic advantage must be converted into an economic asset, which can only be done through strategic investments.
“If we don’t invest in this demographic, who will pay taxes in the future? Who will drive economic growth? The time to act is now,” Adesina warned.
In a move to address this gap, the AfDB has launched the Youth Entrepreneurship Development Bank, aiming to provide much-needed financial support to young entrepreneurs across the continent.
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Adesina also highlighted the bank’s recent approval of $100 million to establish the Nigerian Youth Entrepreneurship Investment Bank.
The goal is to mobilize up to $2 billion in investments for over 38,000 youth-run businesses in Africa.
“You cannot turn your demographic asset into someone else’s problem. We must invest in our young people now to ensure the continent’s future economic prosperity,” Adesina said.
He stressed that creating youth-based wealth would require far more than small grants or loans, but rather substantial capital injections to foster long-term growth.
This push to empower young Africans is seen as essential for building a sustainable future for the continent, one that harnesses the potential of its youth population and turns it into tangible economic growth.