Q: What are the biggest obstacles to empowering youth entrepreneurs in Africa?
A: Entrepreneurship at any age and in any country involves considerable financial risks. These risks also apply to young entrepreneurs in Africa and are exacerbated by fluctuations in the cost of goods, unreliable energy sources, and operating costs. Through USADF’s five-year, $10 million Youth Employability Program partnership with Lagos State Employment Trust Fund (LSETF) in Nigeria that has already trained over 4,000 youths since 2019, we have seen a need to meet youth where they are and ensure that we provide relevant job and comprehensive skills training and internship placement opportunities.
Q: How did COVID-19 change the way young people envision their future?
A: Following the COVID-19 pandemic, we have observed an increase in youth's interest in monetizing their passions and skills by filling niche markets instead of seeking traditional employment opportunities where the job supply is often low. Through my work under USADF’s co-funding partnership with All On, an impact investing company that works with partners to increase access to commercial energy products and services for underserved and unserved markets in Nigeria, I have been impressed with innovative business models within the renewable energy sector that make these businesses more resilient. These have ranged from local sourcing of products due to the global shipping crisis, reducing physical office sites and increased use of remote monitoring technologies due to regional insecurity, and adopting solar technologies to address costly and unreliable energy. Increasingly, Africa's youth are driven to make these business decisions to establish more reliable businesses and ensure more predictable profit margins despite uncertainties in their business environments.
Q: What do local and global leaders—many of whom are from an older generation—need to know about Africa’ young entrepreneurs?
A: Although young African entrepreneurs do not always follow a traditional employment trajectory, their efforts and challenges should not be minimized. Africa’s youth are the continent’s future, and they possess innovative solutions to the current problems in their respective localities. Thus, including youth in decision making and sustainable innovation is imperative to the progress of the continent.
Q: What challenges do young people face related to issues of access to financing and technical assistance —and how has USADF been assisting youth to address these challenges?
A: African youth face challenges that include limited means of establishing creditworthiness due to lack of financial assets, restrictive legal and regulatory environments, lack of established financial and organizational systems, and technical skills gaps. USADF addresses these challenges by investing in youth projects and building their technical skills in competitive sectors, training youth in business management, and establishing robust financial systems to improve their access to future financing opportunities.
Q: What is USADF’s vision for engaging young entrepreneurs in Africa?
A: Young people across Africa will be crucial to the continent's growth story, and its sustainable development will largely depend on their successful mobilization. To this end, USADF's overall vision for engaging youth is to enhance grantees' entrepreneurial, financial, and managerial skills, equipping them with the tools necessary to build, grow and scale their businesses in a sustainable manner. The ultimate purpose is to ensure growth beyond USADF's initial investment, including eligibility for follow-on funding, which creates pathways to prosperity in African communities. In addition, USADF invests in creating job training and employment opportunities for youth to realize their full potential through deploying capital, providing technical support, and creating convening opportunities. As was seen during the pandemic, resilience and innovation are essential skills that must be harnessed for sustainable growth. By investing in Africa, USADF acknowledges that supporting and empowering innovative entrepreneurs, especially youth, allows the future of Africa to be placed in the hands of those who are most creative, capable, and driven to create lasting local impact for a better tomorrow.
Q: Why are you personally invested in empowering youth, especially in Africa?
A: Being from the African Diaspora and the child of Caribbean entrepreneurs whose parents left a small island (Montserrat) as youth to seek greater employment opportunities, I feel a call to support the efforts of my peers in Africa. While previous generations had to seek opportunities in other countries, today, the tide is shifting. Some African youth lack resources, while others either choose to stay or return home, despite the societal and economic challenges they might face. As these conditions may not change overnight, African youth continue to demonstrate their tenacity, creativity, and desire to thrive. USADF's investment in their goals supports their growth and alleviates major barriers to their success.