In Africa, young people are unlikely to receive a microcredit to start their business because they can not provide sufficient guarantees; therefore, to facilitate access to credit for young Africans, LuxDev and ADA are collaborating in this context for a total amount of €200,000, initially capitalised at €35,000 by the Rotary "Espoir 2005" project, to support the young artisans with the Nigerian microfinance institution Asusu.

Africa is the youngest continent of the planet. But 38 million African children are affected by unemployment and 19% of the population is aged 18-24. In this context, since 2008 ADA has been leading the project "Youth Initiative Africa - Créd'art", recently renamed Young Entrepreneurs Africa, with the objective of giving a boost to young craftsmen in the creation of their business. There are a range of financial and non financial services, consisting of micro-credit, training in financial education and business management, and personalised support until repayment to finance the project start-up activities for young craftsmen who want to work in the trades including building, textile, fashion, care and beauty. Originally set up in Burkina Faso with the microfinance institution COR, Caisses Populaires Network of Burkina, and the network of CIF, Confédération des Institutions Financières de l’Afrique de l’Ouest, the project has funded more 1,500 young Burkinese and created 2,300 jobs, counting micro-entrepreneurs, apprentices and enlisted personnel, while providing added value to the microfinance institution.

Replication in other countries

Like the Créd'art, ADA, with the financial support of the Rotary organisation, has decided to extend this experience in two other African countries: Togo, with the MFI (microfinance institution) FUCEC partner and Niger, with the Asusu MFI.

It is in the context of this latest partnership that the Luxembourg Agency for Development Cooperation, LuxDev, delegated €200,000 to ADA to partially cover the risk of default of graduates of vocational and technical training centres and wanting to create their microenterprise.

This guarantee fund, with appropriate conditions, will cover the risks of non-payment associated with certain credit applicants who do not have the necessary guarantees to access traditional credit. So as part of this collaboration with ADA, particularly through the support mechanisms that will be put in place, that guarantee funds may be an economic lever for easy start securing credits for youth Outgoing who initiated viable economic projects.

To complete this project, ADA will also set up technical support to support young people in creating their microenterprise. The goal for 2016 is to fund 550 young people, including 250 graduates of training centres supported by LuxDev.

Ranked as the least developed countries according to the World chain of human development index and with a poverty rate of 46.3%, Niger is in particular need of assistance from developed countries. It is thus among the six privileged partner countries of Luxembourg cooperation in Africa.

LuxDev been working for over 20 years in Niger, making investments mainly in the region of Dosso, especially in the areas of education, literacy, agricultural production and access to drinking water.

Photo © Andres Lejona / ADA