Youth entrepreneurship in Africa: Igniting a continent’s potential

Africa is home to the youngest population in the world, with over 60% of its people under the age of 25.¹ This demographic dividend is a double-edged sword—it poses a risk if not managed well, but it also holds immense potential to transform the continent into a global hub of innovation and enterprise. Across Africa, young people are increasingly turning to entrepreneurship as a way to drive change, create jobs, and solve real-world problems. 

Table of contents
The rise of youth entrepreneurs
Why youth entrepreneurship matters
Challenges young entrepreneurs face
Supporting youth entrepreneurship in Africa
The role of technology
The way forward

The rise of youth entrepreneurs
With traditional employment avenues shrinking and formal job creation lagging behind population growth, youth entrepreneurship has become a necessity, not a choice. From tech start-ups and creative industries to agribusiness and green energy, African youth are showing resilience, creativity, and boldness. 

Success stories abound—companies like Flutterwave in Nigeria and Twiga Foods in Kenya have roots in youthful innovation and are now transforming their respective industries. 

Why youth entrepreneurship matters 
Youth entrepreneurship matters because it plays a critical role in addressing some of Africa’s most pressing challenges. First and foremost, youth-led businesses are a powerful engine for job creation, helping to reduce the high levels of unemployment that affect many African nations.  

Beyond employment, young entrepreneurs drive innovation and disruption, offering fresh solutions to longstanding problems—whether through mobile money platforms, tech-enabled agriculture, or digital health services. Importantly, many of these ventures are not just profit-driven; they are deeply rooted in community transformation, aiming to improve access to essential services like healthcare, education, and clean energy. 

Challenges young entrepreneurs face 
Despite the growing momentum, young African entrepreneurs continue to face several significant challenges. Access to capital and credit remains limited, with many struggling to secure funding due to lack of collateral or formal financial history. In addition, there is often a shortage of mentorship and business training opportunities, leaving young founders without the guidance needed to grow sustainable ventures. Regulatory red tape and bureaucratic hurdles can further complicate business registration and operations. Lastly, limited access to markets and inadequate support for scaling their ventures make it difficult for many youth-led businesses to expand beyond their local communities. 

That’s where support organisations step in. 

Supporting youth entrepreneurship in Africa 
ESG in the Middle East is no longer a “nice-to-have”—it’s a business imperative. With increasing investor scrutiny, regulatory momentum, and global spotlight, companies across the region are taking significant steps to integrate ESG into their core operations. Those that lead now won’t just meet expectations—they’ll shape the future of sustainable development in the Middle East and beyond. 

Numerous companies and organisations are actively working to support, fund, and mentor Africa’s young entrepreneurs. Here are some of the most impactful: 

• Tony Elumelu Foundation (TEF)
  Country: Nigeria (Pan-African reach)
  Impact: Over 21,000 young African entrepreneurs supported through seed capital, training, and mentorship.
  Focus: Empowering African entrepreneurs through a US$100 million commitment.
  
  “We believe that the private sector holds the key to unlocking Africa’s economic potential.” – Tony Elumelu 
  
  
•  Anzisha Prize²
  Country: South Africa (Pan-African reach)
  Impact: Offers mentorship, business support, and funding to very young entrepreneurs (15-22 years old).
  Focus: Early-stage, high-potential youth-led businesses.
  
  
• Mastercard Foundation – Young Africa Works³
  Country: Multiple across Africa 
  Impact: Aims to enable 30 million young people, especially young women, to access dignified work by 2030. 
  Focus: Education, entrepreneurship, and financial inclusion. 

• Orange Corners (by the Dutch Government)⁴
  Country: Nigeria, Ghana, South Africa, Morocco, and more
  Impact: Supports early-stage entrepreneurs with training, workspace, mentorship, and access to networks. 
  Focus: Strengthening local start-up ecosystems.

• AfricArena⁵
  Country: South Africa (Pan-African platform)
  Impact: Hosts pitch events, connects start-ups with investors, and promotes African innovation globally.
  Focus: Tech start-ups and investment readiness.
  

• Google for Start-ups – Black Founders Fund Africa⁶
  Impact: Offers equity-free funding, cloud services, mentorship, and training to promising African start-ups. 
  Focus: Supporting underrepresented start-up founders across the continent.

• iHub and MEST Africa
  Country: Kenya (iHub), Ghana (MEST), with regional influence 
  Impact: Incubation, accelerator programs, and funding opportunities for early-stage tech entrepreneurs.
  Focus: Tech innovation, skills development, and start-up investment.
  

• Villgro Africa⁷
  Country: Kenya
  Impact: Incubates and funds health and life sciences start-ups, with an emphasis on social impact.
  Focus: Health innovation, agritech, and impact investing.

The role of technology 
Africa's youth are digital natives, and technology is central to their entrepreneurial ventures. Mobile money, e-commerce, and online learning have made it easier than ever to launch and grow a business.

The way forward
Unlocking the full potential of youth entrepreneurship in Africa requires a coordinated, collective effort across all sectors. Governments must take the lead by simplifying business registration processes, improving infrastructure, and investing in targeted youth programs that support entrepreneurship.  

At the same time, private sector companies have a vital role to play by forming strategic partnerships with youth-led start-ups, providing resources, networks, and expertise.  

Investors need to step up by creating financial products tailored to the unique needs of early-stage ventures, many of which lack traditional collateral and educators could integrate entrepreneurship into school curricula, equipping young people with the mindset and skills needed to succeed in today’s economy. 

Diligencia helps customers from around the world to find essential information on organisations registered in Africa and the wider Middle East, drawing on primary sources that are otherwise hard to find. Using our curated data, we enable our clients to effectively manage their compliance obligations, allowing them to continuously monitor their suppliers and counterparty risks in the MEA region.

FOOTNOTES

1. https://www.africanleadershipmagazine.co.uk/10-african-countries-with-the-youngest-population/
2. https://www.linkedin.com/company/the-anzisha-prize/?originalSubdomain=za
3. https://mastercardfdn.org/en/what-we-do/our-strategy/
4. https://www.orangecorners.com/
5. https://www.linkedin.com/company/africarena/?originalSubdomain=za
6. https://startup.google.com/programs/black-founders-fund/africa/
7. https://www.linkedin.com/company/villgroafrica/?originalSubdomain=ke