AfDB Charts Next Phase of YouthADAPT, Targeting Scalable Climate Solutions and Sustainable Financing for African Youth

A central outcome of the consultation was a clear shift in strategy—from stand-alone grant funding to more sustainable, blended financing approaches.

 The African Development Bank (AfDB) Group has advanced plans for the next phase of its flagship YouthADAPT programme, following a high-level stakeholder consultation that underscored the need to scale youth-led climate innovation through stronger financing models and ecosystem support.

The two-day workshop, held 24–25 February 2026, brought together business leaders, policymakers, investors, and development partners to evaluate progress and redesign the programme for greater impact in its upcoming fourth cycle.

From Grants to Growth: Rethinking Climate Innovation Financing

A central outcome of the consultation was a clear shift in strategy—from stand-alone grant funding to more sustainable, blended financing approaches.

Participants emphasized that while early-stage grants have been critical in launching climate ventures, long-term success depends on:

• Stronger post-award support systems

• Improved market and investor linkages

• Clear pathways from grant funding to commercial finance

The proposed model includes milestone-based funding, revenue-linked financing instruments, and investor advisory mechanisms, aimed at reducing dependency on grants while preparing enterprises to attract private capital.

YouthADAPT’s Impact: Jobs, Innovation and Inclusion

Launched as a flagship AfDB initiative, YouthADAPT supports youth-led enterprises delivering climate adaptation solutions across Africa. Funded by the Youth Entrepreneurship Multi-Donor Trust Fund (YEI MDTF) and the Africa Climate Change Fund (ACCF), the programme has already demonstrated measurable impact:

• 39 enterprises supported across 20 African countries (2021–2025)

• Approximately 11,000 direct and indirect jobs created

• 63% of supported businesses are women-owned, highlighting strong gender inclusion

These enterprises are addressing critical challenges in water management, food systems, renewable energy, circular economy, and climate-smart services.

Innovation at the Intersection of Youth and Climate Risk

Opening the workshop, Al-Hamndou Dorsouma, Manager for Climate and Green Growth at AfDB, highlighted the urgency of empowering youth in a continent facing disproportionate climate risks.

“Africa is the world’s youngest continent, yet it is also the most climate-vulnerable. Innovation is the bridge between these two realities,” he said, noting that youth-led solutions are often faster, more adaptive, and locally grounded.

Designing a More Resilient Programme

Stakeholders agreed that the fourth cycle of YouthADAPT must place entrepreneurs at the centre of programme design, ensuring support aligns with real-world business needs.

Key priorities identified include:

• Early investor engagement to accelerate scale-up

• Expanded venture-building and technical support

• Stronger local partnerships and ecosystem integration

• Diversified implementation models to reduce reliance on single delivery partners

The goal is to build a holistic support system that nurtures enterprises from ideation to investment readiness.

Addressing Structural Gaps and Risks

Insights from a pre-workshop survey revealed persistent challenges limiting programme effectiveness:

• Weak transition from grant funding to private finance

• Limited alignment with local market realities

• Overdependence on single implementing partners

Participants stressed that addressing these gaps is critical to ensuring long-term sustainability and scalability.

Building a Capital Transition Pathway

One of the most significant recommendations was the creation of a structured capital transition pathway within YouthADAPT.

This approach would:

• Combine catalytic grants with performance-based funding tranches

• Introduce returnable or revenue-based financing mechanisms

• Provide risk-sharing tools to attract private investors

The objective is to help enterprises become bankable and investment-ready without exposing them to unsuitable financial terms.

Strengthening Partnerships and Ecosystems

The consultation also highlighted the importance of collaboration across the climate finance ecosystem.

Mary Kashangiki of Financial Sector Deepening Africa noted that integrating YouthADAPT insights with broader financing initiatives could unlock new opportunities for climate innovation across the continent.

Similarly, YouthADAPT Coordinator Edith Ofwona Adera emphasized that the programme has reached a critical moment of evolution, requiring a more resilient, adaptive, and partnership-driven framework.

Next Steps: Toward a Scalable, Outcomes-Focused Model

The workshop concluded with agreement on a clear roadmap for the next phase:

• Consolidating findings into a design-ready programme framework

• Conducting targeted follow-up consultations with stakeholders

• Co-developing a scalable delivery model with implementation partners

The redesigned YouthADAPT programme is expected to place stronger emphasis on measurable outcomes, financial sustainability, and ecosystem-driven growth.

A Catalyst for Africa’s Climate Future

As climate risks intensify across Africa, YouthADAPT is emerging as a critical platform for empowering the continent’s young innovators to build locally driven, scalable solutions.

By evolving its financing model and strengthening support systems, AfDB aims to transform YouthADAPT into a leading engine for climate entrepreneurship—linking innovation with investment and impact at scale.