With less than five years remaining until 2030, Africa is at risk of missing several Sustainable Development Goals (SDGs), a reality that threatens to stall economic and social progress across the continent. While the continent has made significant strides, persistent challenges such as limited access to finance, inadequate infrastructure, and entrenched societal barriers continue to stifle growth. If urgent action is not taken, Africa risks falling further behind, exacerbating poverty, unemployment, and inequality.

Yet, Africa’s most powerful resource is its people, particularly its vibrant youth and enterprising women. These groups are not just participants in economic transformation, they are its driving force. Across the continent, young innovators and women entrepreneurs are reshaping industries, creating jobs, and pioneering solutions to some of Africa’s most pressing challenges. Empowering them is no longer just an economic strategy, it is an urgent necessity for sustainable progress.

To unlock their full potential, African leaders must move beyond rhetoric and implement actionable strategies that break down barriers, provide access to capital, and foster a thriving entrepreneurial ecosystem.

Entrepreneurship has long been the backbone of Africa’s economy, with small and medium-sized enterprises (SMEs) accounting for the majority of jobs across the continent. From agriculture and retail to technology and manufacturing, African entrepreneurs continue to find innovative ways to provide goods and services while creating employment opportunities. Studies suggest that creating just 10 successful new businesses could add $1.4 billion to a country’s GDP and generate over 2,400 new jobs.

Despite this potential, many aspiring entrepreneurs particularly women and young people face significant hurdles. Access to finance remains a major challenge, as many banks and traditional lenders view small-scale entrepreneurs as high-risk borrowers. Education and skills training gaps also limit the ability of young people to scale their businesses effectively. In response to these challenges, organizations, governments, and development partners have stepped in to provide targeted support.

Numerous organizations, governments, and development partners have launched initiatives to support Africa’s entrepreneurs. The Tony Elumelu Foundation (TEF) has committed $100 million to training and funding African entrepreneurs, with over 20,000 beneficiaries, 9,000 of whom are women. The BeGreen Africa initiative backed by TEF, UNICEF Generation Unlimited, and the IKEA Foundation, promotes green entrepreneurship among young business owners in Kenya, Nigeria, Morocco, Senegal, and South Africa.

Beyond private foundations, international organizations are also taking action. The African Development Bank’s (AfDB) Affirmative Finance Action for Women in Africa (AFAWA) is addressing the financing gap for women entrepreneurs, mobilizing billions in funding to support their ventures. Similarly, governments are implementing policies to encourage entrepreneurship. Rwanda has introduced business-friendly policies, including tax incentives and simplified registration processes to formalize enterprises. Nigeria’s Youth Investment Fund offers financial support to young entrepreneurs, easing one of the most significant barriers to business expansion.

While these initiatives are making a difference, several critical challenges continue to limit the impact of entrepreneurship in Africa:

Partnerships between governments, private organizations, and international institutions are essential to scaling entrepreneurship initiatives across Africa. Public-private partnerships (PPPs) can drive access to finance, infrastructure development, and capacity-building programs.

For instance, the TEF-EU Women Entrepreneurship for Africa (WE4A) initiative has provided funding and training to over 2,400 women entrepreneurs, particularly in underserved communities. Similarly, Google’s partnership with African governments has enabled 500 rural women to access capital and digital training, equipping them with essential business tools.

Governments must also play an active role in creating policies that support entrepreneurship. By reducing bureaucratic hurdles, offering tax incentives, and promoting financial inclusion, policymakers can create an enabling environment for businesses to thrive. Additionally, investing in critical infrastructure such as reliable electricity, high-speed internet, and efficient transportation will allow entrepreneurs to scale their businesses and reach broader markets.

To fully harness the potential of youth and women entrepreneurs and drive Africa’s economic transformation, stakeholders must prioritize the following key areas:

Africa stands at a crucial crossroads on its path to economic transformation. With less than five years remaining until 2030, the continent is at risk of missing several SDGs unless immediate and decisive action is taken. By empowering youth and women entrepreneurs with the right tools, financial access, and supportive policies, Africa can unlock its vast economic potential. However, this requires urgent and sustained action from governments, private organizations, and development partners. The time to act is now—by fostering a more inclusive and thriving entrepreneurial ecosystem, Africa can build a prosperous and sustainable future for generations to come.