The African Development Bank (AfDB) has said its Youth Business Resilience Support Project will build the capacities of 500 young business leaders in the G5 Sahel member countries.
The G5 Sahel countries – Burkina Faso, Chad, Mali, Mauritania and Niger – face a number of challenges, including chronic insecurity and climate change which stifles the growth of small and medium enterprises (SMEs).
The project, it is understood, aims to improve the institutional support framework for youth microenterprises and SMEs, strengthen the resilience of these businesses to climate change, consolidate jobs and create new ones for young people.
AfDB said the project would also improve access to public and alternative financing mechanisms, increase the productivity and income of microenterprises and SMEs of young people.
‘The Youth Business Resilience Support Project provides a specific response from the African Development Bank to young people who have seen their activities strongly impacted by the Covid-19 pandemic’, AfDB Representative, Raymond Besong, said in a statement.
‘It complements two projects financed by the bank in the G5 Sahel countries: the Multinational Support Project for the G5 Sahel countries, amounting to 22 million dollars and the Budget Support Programme for the countries of the G5 Sahel, amounting to approximately $286 million approved in 2020′.
According to the World Bank, the business environment in Burkina Faso makes SMEs and private sector-led growth a challenge.
The International Finance Corporation (IFC) also noted that Burkina Faso needs to create 300,000 jobs annually to match its demographic growth.
Also, data from AfDB reveals that SMEs in Chad face difficulties in accessing financing, leading to a poorly developed private sector in the G5 country.
The continental bank also called for private sector development aimed at improving the business climate and direct private sector support in Chad.
The International Islamic Trade Finance Corporation (ITFC) had also noted that SMEs were virtually excluded from bank financing in Mauritania.
For his part, the Executive Secretary of the G5 Sahel, Éric Yemdaogo Tiaré, said that the project will prioritise sectors and businesses challenged by the Covid-19 pandemic.
‘Microenterprises and SMEs operating in the sectors most affected by the Covid-19 pandemic will be given priority in the selection criteria’, Tiaré said.
‘These are the sectors of tourism, hotels, restaurants, agro-food processing, transport and crafts. In each country, 100 young microenterprises and SMEs will be selected to benefit from project support for a better impact on their activities, with a participation of 30 to 50 [percent] for women’s businesses’.
The project is expected to strengthen the knowledge base of the G5 Sahel countries and enable them to have training modules for young entrepreneurs in key areas for the success of their businesses.
Source: AfDB
Photo source: Moustapha Diallo/World Bank
