The African Development Bank Group’s Board of Directors 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). This five-year programme, running from 2025 to 2030, is designed to strengthen vocational training and expand employment opportunities for young people, particularly women, while supporting private sector-driven growth.
As part of the initiative, two modern provincial polytechnic institutes will be established in Bioko Sur and Welé-Nzas. These institutions will deliver flexible, market-oriented training in key sectors including agriculture, fisheries, public works, tourism, and digital technology, developed in collaboration with private sector actors. The project is expected to generate 4,500 jobs for youth and women, support the creation of 500 businesses—most led by young entrepreneurs and women—and provide training and job placement opportunities for nearly 2,000 individuals.
PARCH 1 is structured around three main pillars: improving vocational training in alignment with high-growth value chains; promoting employment for youth and women by strengthening the entrepreneurial ecosystem and fostering inclusion; and enhancing project management and partnerships to ensure long-term impact.
The project comes at a crucial time, as Equatorial Guinea faces a youth unemployment rate of 23.5 percent, with female unemployment even higher at 26.7 percent. Around 16.5 percent of young people are unemployed, untrained, or have dropped out of school, often relying on the informal sector for survival, which contributes to persistent social challenges. Weak investment in the technical and vocational education system, with less than 2 percent of national resources allocated to the sector, along with outdated curricula and poor recognition of skills, has exacerbated the problem.
The Bank’s support will help tackle these issues by addressing unemployment and underemployment, improving access to training and jobs, and fostering greater economic inclusion, particularly in Bioko Sur and Welé-Nzas. By focusing on skills development and entrepreneurship, the project also seeks to contribute to broader social stability.
As of August 2025, the African Development Bank’s active portfolio in Equatorial Guinea included six projects worth €85 million, with investments concentrated in agriculture and fisheries, governance, ICT, and energy, highlighting the Bank’s broader commitment to supporting inclusive development in the country.
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