The African Development Bank (AfDB) Group has advanced plans for the next phase of its flagship YouthADAPT program following high-level stakeholder consultations that highlighted the need to scale youth-led climate innovation through stronger financing models and ecosystem support.
The two-day workshop, held on February 24-25, 2026, brought together business leaders, policy makers, investors, and development partners to assess progress and redesign programs for greater impact in the upcoming fourth cycle.
From subsidies to growth: Rethinking funding for climate innovation
A central outcome of the consultation was a clear shift in strategy from single grant funding to a more sustainable mixed funding approach.
Participants emphasized that while early-stage grants are important for launching climate-related ventures, long-term success depends on:
Strengthening the support system after winning the award
Improving market and investor connections
A clear path from grants to commercial finance
The proposed model includes milestone-based financing, revenue-linked financing instruments, and investor advisory mechanisms, with the aim of reducing reliance on subsidies while preparing companies to attract private capital.
YouthADAPT impact: jobs, innovation and inclusion
Launched as AfDB’s flagship initiative, YouthADAPT supports youth-led enterprises delivering climate adaptation solutions across Africa. Funded by the Youth Entrepreneurship Multi-Donor Trust Fund (YEI MDTF) and the African Climate Change Fund (ACCF), the program has already demonstrated measurable impact.
Supported by 39 companies in 20 African countries (2021-2025)
Approximately 11,000 direct and indirect jobs will be created
63% of supported businesses are women-owned, highlighting the strength of gender inclusion.
These companies are tackling important challenges in water management, food systems, renewable energy, circular economy, and climate-smart services.
Innovation at the intersection of youth and climate risk
Opening the workshop, Al Hammondou Dorsouma, AfDB’s Climate and Green Growth Manager, emphasized the urgency of empowering the continent’s youth, who face disproportionate climate risks.
“Africa is the world’s youngest continent, but it is also the most vulnerable to climate change. Innovation is the bridge between these two realities,” he said, noting that youth-led solutions are often faster, more adaptive and locally rooted.
Design more resilient programs
Stakeholders agreed that the fourth cycle of YouthADAPT must put entrepreneurs at the center of program design and ensure support is tailored to real-world business needs.
Key priorities identified include:
Early investor engagement to accelerate scale-up
Expansion of venture development and technical support
Stronger local partnerships and ecosystem integration
Diverse implementation models to reduce dependence on a single delivery partner
The goal is to create a comprehensive support system that nurtures companies from ideation to investment preparation.
Addressing structural gaps and risks
Insights gained from the pre-workshop survey revealed persistent challenges that limited the effectiveness of the program.
Weak transition from grants to private funding
Limited alignment with local market realities
Over-reliance on a single implementation partner
Participants emphasized the importance of addressing these gaps to ensure long-term sustainability and scalability.
Building a capital transition pathway
One of the most important recommendations was the creation of a structured capital transition pathway within YouthADAPT.
With this approach:
Combine catalyst grants with performance-based funding tranches
Introduce returnable or revenue-based funding mechanisms
Provide risk sharing tools to attract individual investors
The aim is to help companies obtain bank loans and be ready for investment without exposing them to unsuitable financial conditions.
Strengthening partnerships and ecosystems
The consultations also emphasized the importance of cooperation across the climate finance ecosystem.
Mary Kashangiki from Financial Sector Deepening Africa noted that integrating YouthADAPT’s insights with broader financing initiatives could open up new opportunities for climate change innovation across the continent.
Similarly, Edith Ofwona Adela, YouthADAPT Coordinator, stressed that the program has reached a critical point in its evolution and requires a more resilient, adaptive and partnership-driven framework.
Next steps: Toward a scalable, results-driven model
The workshop concluded with agreement on a clear roadmap for next steps.
Integrate research findings into a designable program framework
Conducting targeted follow-up discussions with stakeholders
Collaborative development of scalable delivery models with implementation partners
The redesigned YouthADAPT program is expected to focus more on measurable outcomes, financial sustainability, and ecosystem-driven growth.
A catalyst for Africa’s climate change future
As climate risks increase across Africa, YouthADAPT has emerged as a key platform to enable young innovators on the continent to build locally-led, scalable solutions.
By evolving its funding model and strengthening its support systems, AfDB aims to transform YouthADAPT into a leading engine of climate entrepreneurship, linking innovation with investment and impact at scale.
