North Africa’s Jobs Challenge in Focus: AfDB Scales Up Investments to Tackle Youth Unemployment and Drive Inclusive Growth

For the African Development Bank, addressing unemployment goes beyond financing individual projects. It requires building entire ecosystems that enable job creation.

As North Africa grapples with one of its most pressing development challenges—creating jobs for a rapidly growing and youthful population—the African Development Bank (AfDB) is intensifying efforts to transform labour markets, boost entrepreneurship, and unlock economic potential across the region.

Despite strong fundamentals—including a young workforce, emerging industries, and entrepreneurial energy—millions remain excluded from productive employment. The scale of the challenge is stark: 31.2% of young people are not in education, employment, or training (NEET), while youth unemployment is projected to reach 22.3% in 2025.

A Systemic Approach to Job Creation

For the African Development Bank, addressing unemployment goes beyond financing individual projects. It requires building entire ecosystems that enable job creation.

"For the African Development Bank Group, the response is not only to finance projects, but to strengthen the systems that create jobs," said Mohamed El Azizi, Director General for North Africa.

This approach focuses on:

• Skills development aligned with market demand

• Support for entrepreneurship and SMEs

• Improved access to finance

• Strengthening value chains

• Enhancing private-sector competitiveness

The goal is to create more inclusive, resilient labour markets that generate sustainable employment opportunities for women, youth, and men alike.

Egypt: Driving Private Sector Growth

In Egypt, the Bank is anchoring job creation in private-sector development, with a total portfolio of around $2 billion, nearly 39% of which is dedicated to private-sector operations.

A flagship initiative in the pipeline—the Jobs, Entrepreneurship and Livelihoods Enhancement Support Project (2026)—aims to:

• Support start-ups and small businesses

• Strengthen inclusive value chains

• Expand employment opportunities

"Regional integration, regulatory reform, and labour mobility are essential to unlocking Africa's full economic potential—especially for its youth," said Abdourahmane Diaw, AfDB Country Manager in Egypt.

Mauritania: Empowering Rural Women

In Mauritania, the Bank is targeting rural women's economic empowerment through agriculture.

A $17 million grant approved in 2024 is helping female market gardeners:

• Improve productivity

• Add value to agricultural products

• Develop year-round production systems

The initiative is expected to directly benefit 22,200 households and indirectly impact nearly 90,000 people, boosting both incomes and resilience in vulnerable communities.

Morocco: Investing in Climate-Resilient Agriculture

Morocco is seeing major investment in inclusive and sustainable agriculture, with a €100 million loan approved in 2025.

The programme focuses on:

• Supporting women and youth in agriculture

• Strengthening food security

• Promoting climate adaptation

• Expanding agro-processing and digital technologies

"Women who have the ambition to undertake and succeed in agriculture are our priority," said Achraf Tarsim, head of AfDB's Morocco office.

Tunisia: Turning Reform into Jobs

In Tunisia, labour market reform is being translated into tangible employment through the CAP Emploi programme, launched in 2025.

Backed by €90 million from the AfDB and a $2.5 million AFAWA grant, the programme combines:

• Short-term, demand-driven training

• Entrepreneurship support

• Access to zero-interest loans

• Assistance with business formalisation

The initiative aims to generate 118,900 formal jobs, including:

• 76,600 direct jobs

• 42,300 indirect jobs

"CAP Emploi aims to unlock the potential of thousands of entrepreneurs, particularly women," said Malinne Blomberg, AfDB Country Manager for Tunisia.

Proven Impact: Entrepreneurship as a Catalyst

Earlier programmes are already demonstrating the power of entrepreneurship support.

The Souk At-Tanmia initiative (2012–2021) supported hundreds of entrepreneurs across Egypt, Morocco, and Tunisia, providing training, mentoring, and funding.

Entrepreneurs like Tunisia's Samia Ben Abdallah, founder of the AWA leather goods brand, credit the programme with helping them scale their businesses through improved strategy, marketing, and sales capabilities.

"In Tunisia, there is no shortage of talent," she noted, pointing to the country's strong industrial and creative value chains.

A Regional Priority: Jobs as the Foundation of Stability

As North Africa marks International Labour Day, the message from policymakers and development institutions is clear: job creation is central to inclusive growth, social stability, and long-term competitiveness.

The AfDB's multi-country strategy highlights a key lesson—sustainable employment cannot be created through isolated interventions. It requires:

• Coordinated investment

• Policy reform

• Skills alignment

• Strong private-sector ecosystems

Looking Ahead

With youth populations continuing to grow and economic pressures mounting, the urgency of action is increasing.

By combining large-scale financing with targeted programmes for women, youth, and entrepreneurs, the African Development Bank is positioning itself at the forefront of efforts to reshape North Africa's labour markets.

If successful, these initiatives could not only reduce unemployment but also unlock a new wave of innovation, productivity, and inclusive prosperity across the region.