The African Development Bank (AfDB) has called for the creation of a robust financial ecosystem to support young entrepreneurs in Liberia, warning that the current system fails to provide the necessary tools for youth-led businesses to thrive.
Speaking during the official launch of the Youth Entrepreneurship Investment Bank (YEIB) in Monrovia, AfDB President and Chairman of the Board, Dr. Akinwumi A. Adesina, emphasized that Liberia’s youthful population stands at 71% of whom are under the age of 35.
According to him, these significant number of young people are being left behind due to high unemployment, low education attainment, and inadequate access to capital.
“This is a day of hope. A day to unleash vast economic opportunities for Liberia’s youth,” Dr. Adesina declared.
“But the current financial system does not serve them. There is a missing middle. The commercial banks are too big; the microfinance institutions are too small. Our youth are left with no place to go.”
On the Youth Entrepreneurship Investment Bank (YEIB) project in Liberia, the AfDB Boss said it is backed by $16 million from the AfDB, marking the first of its kind on the continent. The initiative is designed to offer a combination of financial and non-financial services to help young people start, grow, and scale their businesses.
YEIB Liberia will operate through a structured model under a Management Holding Company and three specialized vehicles.
According to him, the Early-Stage Equity Fund will provide long-term capital through equity and quasi-equity investments. DR. Adesina added a Technical Assistance Fund will offer support in financial literacy, entrepreneurship training, and business development services.
The program is expected to see a Credit Guarantee Fund will reduce the risk financial institutions face by offering collateral-free guarantees for youth-owned businesses.
The Bank is targeting key sectors including agriculture, agribusiness, digital services, mining, and tourism. Through its operations, the YEIB of Liberia aims to support 6,000 businesses, reach over 30,000 youth-led enterprises, create an estimated 120,000 jobs, and generate approximately $80 million in new tax revenues for the government.
“Liberia’s youth should not be forced to hustle as their only path forward,” said Dr. Adesina. “They must become job creators, not just job seekers.”
He acknowledged that while earlier efforts, such as AfDB’s Youth Entrepreneurship and Employment Project, helped introduce entrepreneurship curriculums and start-up funding competitions, they fell short due to lack of accessible capital. That gap, he said, is what YEIB is now poised to fill.
The Bank’s launch comes amid stark economic and social realities. Youth underutilization in Liberia stands at 76%, driven by high unemployment and a prevalence of low-paying informal jobs. Only 55% of the country’s youth have attained secondary or higher education, and many lack digital and entrepreneurial skills necessary for today’s economy.
President Joseph Nyuma Boakai has previously acknowledged the urgency of the crisis, stating in March this year, “If the government fails to tackle these challenges, we will be in trouble.”
Dr. Adesina echoed the president’s sentiments: “Everything the government does must focus on creating jobs for the youth and supporting the youth to create jobs for themselves.”
The YEIB of Liberia will be governed by a Board of independent private-sector leaders. Although it is initially government-enabled, it will operate as a private sector-led initiative, with full operations expected to begin in early 2026. The licensing of the Management Company is slated for September 2025.
The AfDB also announced plans to establish nationwide Business Innovation and Development Centers to further bolster entrepreneurship and ease access to government support services for small and medium-sized enterprises.
“We are at a historic moment that will change the future of Liberia’s youth,” Dr. Adesina concluded. “Let us turn misery into hope and hope into wealth for the youth of Liberia. Let us do it together.” , he stated.
