World Bank urges boost for small enterprises to tackle youth unemployment crisis

The World Bank Group has called for urgent action to expand economic opportunities, warning that about 1.2 billion young people are expected to enter the global workforce within the next decade.

According to the Bank, the private sector will play a critical role in addressing this challenge, describing it as the “engine of job creation.”

Micro, Small and Medium Enterprises (MSMEs), which make up 90 per cent of businesses and 75 per cent of jobs globally, are considered central to this effort.

However, a financing gap of about USD5.7 trillion continues to constrain their growth and potential.

The World Bank said creating the right conditions remains essential for generating jobs. This includes access to health, education, training, infrastructure and reliable energy.

“Take combating malnutrition. Not only does it mean a healthier and better quality of life, but every dollar spent to combat it brings a return of 23 dollars in better health outcomes and productivity,” the Bank said in a video posted on its official X page.

It further highlighted the importance of electricity to job creation, noting that through its Mission 300 initiative, it is working with partners to connect 300 million people to electricity in sub-Saharan Africa.

On the role of governments, the World Bank said policy and regulatory frameworks are key enablers of employment growth.

“Policy and regulations: This is an area the World Bank Group can share its knowledge and expertise to help countries create the framework for job creation and growth,” it added.

The call comes at a time when many African economies, including Ghana, are grappling with high youth unemployment rates, limited access to financing for small businesses and inadequate infrastructure.

The World Bank insists that addressing these challenges will be vital in ensuring that the next generation can access decent work and contribute to sustainable economic development.