Financial News

Afdb to disburse $996.6 million to young entrepreneurs looking to tackle climate change

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The bank stated the money will help youth-led firms on its X (formerly Twitter) social media website. “AfDB Group and Global Center on Adaptation (GCA) are launching a Ksh145.5 billion initiative to finance youth-led businesses and startups. The capital infusion will empower young entrepreneurs across Africa. It’s an exciting step towards economic growth,” reads the statement.

Youth investment is essential to promoting prosperity and stability on the continent, according to AfDB President Akinwumi Adesina, who was speaking at the Africa Youth Climate Assembly. Mr. Adesina stated, “The biggest risk is not investing in the youth,” adding, “The youth need investment, not empowerment.”

The AFDB president also noted that African countries should actively take climate-friendly initiatives into account “not because someone has told us so, but because we have to.”

The bank will increase its current $4 million contribution to the GCA-affiliated YouthADAPT program. The initiative, which consists of an annual competition and prizes, aims to encourage entrepreneurship and youth-led climate change innovation in order to increase the development of sustainable jobs.

Young businesspeople and Micro, Small, and Medium-sized Enterprises in Africa are invited to propose creative solutions and business plans that can promote climate change adaptation and resilience for the competition.

Despite producing only 4% of the world’s greenhouse gas emissions, Africa suffers disproportionately from climate change. This issue jeopardizes the welfare and advancement of people on the continent. Many African countries rely heavily on industries that are vulnerable to climate change, such as energy, tourism, water resources, and agriculture, as the cornerstones of their economic development and survival.

Its investments in climate financing rose from $2.1 billion in 2020 to $2.4 billion in 2021 and $3.6 billion in 2022, with 67% of those investments going toward adaptation in 2021 and 63% in 2022.