AfDB Approves $79 Million Loan to Boost Youth Employment in Angola

The five-year project, running from 2025 to 2029, will focus on developing digital, technical, ecological, and entrepreneurial skills among young people.

The African Development Bank Group's Board of Directors has approved a $79.08 million loan to Angola for the Angola Youth Employment Project (AYEP), aimed at fostering youth entrepreneurship and employment in the agriculture and transport sectors. This funding covers approximately 64% of the project's total budget of $124.68 million, with the remainder financed by the Angolan government (23.3%) and the private sector (0.4%).

The five-year project, running from 2025 to 2029, will focus on developing digital, technical, ecological, and entrepreneurial skills among young people. It aims to stimulate creativity and innovation, support start-ups in accessing financing, and enhance the operating environment for businesses. The project will also improve public procurement capacity.

Over 95,000 young people are expected to benefit from training in digital technology and Technical and Vocational Education and Training (TVET) related to climate-smart agriculture and transport. The initiative aligns with Angola’s National Development Plan for 2023-2027, which seeks to diversify the economy and reduce reliance on oil revenues.

Pietro Toigo, the Bank Group's Country Manager for Angola, emphasized the Bank's commitment to supporting Angola’s economic diversification. “This project will ensure that youth and women are not left behind in the economic transformation process but are instead equipped to compete in the labor market and secure decent jobs,” he stated.

Angola, which has the second fastest population growth rate in Africa, has a young population that constitutes half of its 35 million inhabitants. The agricultural sector, employing over 50% of the workforce, and the transport sector, with potential for job creation through its value chains, are key focus areas. The project will be implemented in eight provinces—Luanda, Huíla, Huambo, Benguela, Cabinda, Cuanza Sul, Bié, and Malanje—many of which are along the Lobito Corridor, an emerging logistics hub.

Since its inception in Angola in 1980, the African Development Bank Group has approved over $3 billion for various development projects in the country.