Abbas Nazil
The African Development Bank (AfDB) has approved a €73.27 million loan to Equatorial Guinea for the first phase of the Human Capital Development Project in Support of Economic and Social Inclusion (PARCH 1), a five-year initiative running from 2025 to 2030 that seeks to tackle unemployment among young people, particularly women, by improving vocational training and expanding access to jobs.
The project is expected to create 4,500 jobs for youth and women, launch 500 businesses largely led by young entrepreneurs and women, and provide training and job placement opportunities for 1,935 beneficiaries.
AfDB Central Africa Director General Léandre Bassolé said the project would help bridge the mismatch between training and market demands while driving private sector-led growth.
PARCH 1 focuses on three core components: strengthening vocational training to align with high-growth value chains, enhancing youth and women’s employment through improved entrepreneurship ecosystems and inclusion measures, and building capacity for project management and partnerships.
Two provincial polytechnic institutes will be established in Bioko Sur and Welé-Nzas, offering flexible, market-oriented training in areas such as agriculture, fisheries, public works, tourism, and digital technology.
Equatorial Guinea currently faces a youth unemployment rate of 23.5 percent, with women disproportionately affected at 26.7 percent.
In addition, around 16.5 percent of young people are unemployed, untrained, or have dropped out of school, leaving many dependent on informal sector work that contributes to social tensions.
The country’s vocational and technical training system has been underfunded, receiving less than 2 percent of national resources, and hampered by gaps in curriculum development, institutional capacity, and recognition of acquired skills.
The AfDB’s intervention is aimed at correcting these weaknesses while promoting economic inclusion and social stability.
Officials say the investment will not only benefit individuals seeking employment but also strengthen Equatorial Guinea’s capacity to diversify its economy away from reliance on oil, supporting growth in agriculture, fisheries, and services.
By aligning education with labor market needs, the project is also expected to reduce underemployment and provide a pathway for young people to engage in productive, sustainable livelihoods.
As of 30 August 2025, the AfDB’s active portfolio in Equatorial Guinea included six projects valued at €85 million, with the bulk of investments concentrated in agriculture and fisheries at 65 percent, governance at 34 percent, ICT at 0.69 percent, and energy at 0.55 percent.
The Bank has emphasized that PARCH 1 complements these efforts by addressing one of the country’s most pressing challenges—youth unemployment.
The project is also designed to enhance territorial inclusion, particularly in the provinces where the new institutes will be built, ensuring access to skills development in areas often neglected in past national investments.
Officials stressed that by targeting women and vulnerable groups, PARCH 1 will promote both equity and resilience.
The African Development Bank’s support is expected to lay the foundation for a second phase of the project, with the long-term goal of building a robust human capital base that can sustain inclusive economic growth in Equatorial Guinea.
