ABIDJAN, Ivory Coast – The African Development Bank Group (www.AfDB.org) has approved a €73.27 million loan to Equatorial Guinea to finance the first phase of the Human Capital Development Project in Support of Economic and Social Inclusion (PARCH 1).
The initiative, running from 2025 to 2030, is designed to strengthen vocational training and improve youth employment, particularly for women, while driving private sector-led growth and promoting social stability.
Through the project, two modern provincial polytechnic institutes will be established in Bioko Sur and Welé-Nzas. These training centres will offer flexible, market-oriented courses in high-potential sectors including agriculture, fisheries, public works, tourism, and digital technology.
Programmes will be developed in close collaboration with the private sector to ensure that training is aligned with the demands of Equatorial Guinea’s labour market.
“The successful implementation of PARCH 1 is expected to create 4,500 jobs for young people and women, support the launch of 500 businesses—most of them led by youth and women—and provide training and job placement opportunities for nearly 2,000 beneficiaries,” said Léandre Bassolé, Director General of the Bank for Central Africa.
PARCH 1 is structured around three main components:
Improving vocational training to align with high-growth value chains.
Promoting youth and women’s employment by strengthening the entrepreneurial ecosystem and advancing economic, social, and territorial inclusion.
Enhancing project management and partnerships to ensure sustainable delivery.
Equatorial Guinea currently faces a youth unemployment rate of 23.5%, with female unemployment reaching 26.7%. A significant skills mismatch persists between educational programmes and market needs, with 16.5% of young people unemployed, untrained, or having dropped out of school. Many end up in the informal sector, which contributes to underemployment and rising social tensions.
The country’s technical and vocational education and training (TVET) system has long struggled with institutional budgetary constraints, receiving less than 2% of national resources.
Challenges include limited curriculum development, insufficient recognition of skills, and poor infrastructure. By addressing these gaps, PARCH 1 aims to build human capital, foster entrepreneurship, and strengthen social cohesion.
The African Development Bank’s loan to Equatorial Guinea will therefore serve as a critical intervention to reduce unemployment and underemployment while advancing economic inclusion and stability, with particular emphasis on Bioko Sur and Welé-Nzas.
As of 30 August 2025, the African Development Bank’s active portfolio in Equatorial Guinea included six projects worth €85 million. Investments are concentrated in agriculture and fisheries (65%), governance (34%), ICT (0.69%), and energy (0.55%).
This new loan marks a significant addition to the Bank’s portfolio, reinforcing its long-term commitment to inclusive development in the country.
Media Contact:
Solange Kamuanga-Tossou
Communications and External Relations Department
African Development Bank
Email: [email protected]
About the African Development Bank Group (AfDB):
The African Development Bank Group (www.AfDB.org) is Africa’s premier development finance institution, comprising the African Development Bank (AfDB), the African Development Fund (ADF), and the Nigeria Trust Fund (NTF).
With representation in 41 African countries and an external office in Japan, the Bank drives economic development and social progress across its 54 regional member states. For further information, visit www.AfDB.org.
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