African Development Bank Approves €73.27 Million Loan For Youth Employment And Skills Development Equatorial Guinea

(MENAFN- Caribbean News Global) The African Development Bank's support for the project will help reduce unemployment and underemployment, improving economic inclusion and driving social stability, particularly in Bioko Sur and Welé-Nzas

ABIDJAN, Ivory Coast – The board of directors of the African Development Bank Group has approved a €73.27 million loan to Equatorial Guinea for the first phase of the country's Human Capital Development Project in Support of Economic and Social Inclusion (PARCH 1).

The five-year project (2025-2030) aims to improve vocational training and expand access to employment for young people, particularly women, in order to foster private sector-led growth. Under the initiative, two modern provincial polytechnic institutes will be established in Bioko Sur and Welé-Nzas. These institutes will provide flexible market-oriented training in key sectors such as agriculture, fisheries, public works, tourism and digital technology, developed in close collaboration with the private sector.

“The successful implementation of PARCH 1 is expected to create 4,500 jobs for young people and women, support the launch of 500 businesses-most led by young people and women-and provide training and job placement opportunities for 1,935 beneficiaries,” said Léandre Bassolé, director-general of the Bank for Central Africa.

The successful implementation of PARCH 1 is expected to create 4,500 jobs for young people and women

PARCH 1 is structured around three components: improving vocational training to align with high-growth value chains; promoting youth and women's employment by improving the entrepreneurial ecosystem and advancing economic, social and territorial inclusion; and strengthening project management and partnerships.

Equatorial Guinea is currently grappling with a youth unemployment rate of 23.5 percent, with a particularly high rate among women (26.7 percent). These figures reflect a fundamental mismatch between educational training and labour market demands. An estimated 16.5 percent of youth are unemployed, untrained or have dropped out of school, often turning to the informal sector and contributing to social tensions.

The country's technical and vocational education and training system has struggled with institutional budgetary constraints, receiving less than 2 percent of national resources, alongside inadequacies in curriculum development and skills recognition.

The African Development Bank's support for the project will help reduce unemployment and underemployment, improving economic inclusion and driving social stability, particularly in Bioko Sur and Welé-Nzas.

As of 30 August 2025, the African Development Bank Group's active portfolio in Equatorial Guinea comprised six projects valued at €85 million, with investments focused on agriculture and fisheries (65 percent), governance (34 percent), ICT (0.69 percent), and energy (0.55 percent).

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