AfDB, Equatorial Guinea Sign €58.6M Deal to Boost Youth Skills and Jobs

The African Development Bank Group (AfDB) and the Republic of Equatorial Guinea have signed a landmark €58.61 million financing agreement to launch the Project to Strengthen Human Capital in Support of Economic and Social Inclusion (PARCH I) — a transformative initiative aimed at expanding education, training, and job opportunities for young people and women in the country.

The agreement was officially signed on 30 October 2025 in Bata, Equatorial Guinea's largest mainland city, by Léandre Bassolé, AfDB's Director for Central Africa, and Pedro Abeso Obiang Eyang, Deputy Minister for Finance and Budget and the country's Alternate Governor of the AfDB.

This project marks the first AfDB investment in Equatorial Guinea's human development sectors in a decade, signaling a renewed focus on inclusive and sustainable growth in the Central African nation.

Transforming Skills into Opportunities

The PARCH I initiative seeks to bridge the gap between existing infrastructure and human capacity, equipping citizens—particularly youth and women—with the skills required to thrive in a modern economy.

At its core, the project aims to:

• Provide technical and vocational training to nearly 2,000 young people, 45% of whom will be women;

• Create 4,500 new jobs through entrepreneurship, business incubation, and employment programs;

• Establish 500 new youth- and women-led businesses; and

• Construct two new polytechnic institutes in Mongomo (in the east) and Luba (on Bioko Island), both designed to meet international standards and climate sustainability criteria.

In addition, PARCH I will partner with the private sector to provide internships, entrepreneurial training, and seed funding to support small business creation and innovation-driven employment.

"This project bridges the gap between the infrastructure built over the last few decades and the skills that are needed to bring it to life, maintain it, and transform it into sustainable wealth," said Léandre Bassolé. "By training a skilled and enterprising young workforce, Equatorial Guinea is creating the conditions for shared prosperity, where knowledge becomes the country's primary resource."

A Strategic Investment in Youth and Inclusion

The total project cost is €73.27 million, co-financed through a €14.65 million counterpart contribution from the Government of Equatorial Guinea. The government's financial participation underlines its commitment to investing in the next generation, strengthening the link between education, entrepreneurship, and inclusive economic growth.

Deputy Minister Pedro Abeso Obiang Eyang emphasized the importance of the project in diversifying the national economy, which has long relied on oil and gas revenues.

"This financing represents a strategic investment in the future of our youth," Obiang Eyang said. "By developing the skills of our young people in promising sectors, we are laying the foundations for a diversified and resilient economy that can create sustainable opportunities for all the people of Equatorial Guinea."

Building Resilient Education and Employment Systems

Equatorial Guinea has made substantial investments in physical infrastructure over the past two decades, but skill shortages and limited private-sector diversification have constrained employment opportunities. PARCH I aims to close this gap by improving vocational education, technical training, and job placement mechanisms that directly respond to market needs.

The program will also promote inclusive economic participation by prioritizing:

• Gender equality in education and entrepreneurship;

• Rural inclusion, ensuring opportunities for youth outside major cities;

• Digital literacy and innovation through ICT-enhanced training modules; and

• Green and climate-resilient skills development, aligning with AfDB's broader climate adaptation strategy.

The two planned polytechnic institutes in Mongomo and Luba will serve as regional centers of excellence, offering training in engineering, renewable energy, agriculture, fisheries, construction, and digital technologies.

Part of AfDB's Long-Term Commitment to Equatorial Guinea

As of 30 August 2025, the AfDB's active portfolio in Equatorial Guinea comprised five operations and six financial instruments, with net commitments totaling approximately €85.6 million. These investments are distributed as follows:

• 65% in agriculture and fisheries,

• 34% in governance,

• 0.69% in ICT, and

• 0.55% in energy infrastructure.

The launch of PARCH I represents a strategic pivot toward human capital development, complementing the Bank's traditional support for infrastructure and governance reforms. It aligns with the AfDB's Ten-Year Strategy (2023–2033) and the High 5 priorities, particularly "Improve the quality of life for the people of Africa" and "Industrialize Africa."

Empowering the Private Sector and Promoting Innovation

Beyond education, PARCH I emphasizes the role of the private sector as a catalyst for job creation and innovation. The project will help build a national entrepreneurship ecosystem by:

• Establishing incubation and innovation hubs;

• Facilitating public-private partnerships (PPPs) to match trained graduates with employment opportunities;

• Providing access to microfinance and startup funds; and

• Strengthening the business environment through policy support and technical capacity-building.

This integrated approach is expected to mobilize local and regional investors, nurture youth-led startups, and stimulate innovation-driven sectors such as agro-processing, tourism, ICT, and renewable energy.

A Model for Inclusive Growth in Central Africa

The AfDB has long advocated that economic diversification and youth empowerment are essential for sustainable growth in resource-rich economies. Equatorial Guinea, with its significant infrastructure base and natural wealth, is well-positioned to transition from dependence on hydrocarbons to a knowledge-based economy.

"Investing in people is the foundation for long-term resilience," Bassolé noted. "PARCH I sets the stage for Equatorial Guinea to harness its human potential, foster entrepreneurship, and ensure that no one is left behind."

The project is expected to serve as a model for similar human capital initiatives across Central Africa, demonstrating how targeted investment in skills, education, and enterprise can drive social inclusion and equitable growth.

Looking Ahead: Toward Shared Prosperity

With PARCH I, Equatorial Guinea and the AfDB are jointly charting a new course for inclusive development—one where knowledge, innovation, and opportunity replace dependency and inequality.

By empowering its youth and women, fostering entrepreneurship, and connecting education to employment, Equatorial Guinea aims to unlock a new generation of economic leaders capable of shaping the nation's sustainable future.

As the project moves forward, it represents more than a financial investment—it stands as a commitment to human dignity, equity, and shared prosperity for all Equatoguineans.