The African Development Bank Group has approved a $1 million technical-assistance grant to strengthen entrepreneurship and improve access to finance for micro, small and medium-sized enterprises in Libya, with a focus on women and young people.
The bank announced the approval on 27 October 2026. Funding will come from its Middle-Income Country Technical Assistance Fund and support a project titled Private Sector Development and Entrepreneurship Enhancement.
Libya’s National Economic and Social Development Board will implement the project on behalf of the government in collaboration with Expertise France. The initiative is designed to address business-skills gaps, limited financing options and weaknesses in the institutions that support enterprise development.
The project plans to train 200 entrepreneurs in business planning, financial literacy, project management, pricing and marketing. Women are expected to account for 40% of participants, while young people are expected to represent 50%. These are planned participation targets, not completed training outcomes.
On the financial-services side, the initiative will train 50 banking professionals in Islamic finance and lending to smaller businesses. It will work with at least four financial institutions and enterprise-support providers, including on the design of microfinance products that respond to the needs of women and young entrepreneurs.
Access to finance is not only a question of how much capital is available. Lenders also need reliable information, suitable products and the ability to assess risks associated with businesses that may have limited financial records. The programme therefore includes capacity building for the Libya Credit Information Center and improvements to information systems used in credit decisions.
The grant will also support updates to Libya’s Private Sector Development Roadmap and Action Plan. At least five national institutions are expected to receive assistance with monitoring, reporting and incorporating gender and youth priorities into their work.
The project is part of efforts to diversify Libya’s economy beyond oil and gas. A broader base of viable enterprises could contribute to employment and commercial activity, although the extent of that contribution will depend on implementation and the operating environment faced by businesses.
Climate-smart business practices and resource efficiency are also expected to be incorporated into training, alongside support for financial institutions considering climate-related factors in lending. These activities broaden the project’s scope but do not make it a dedicated climate-finance fund.
The distinction between the grant and business financing is important. The approved $1 million will support technical assistance, training and institutional improvements; it is not a $1 million loan pool being distributed directly to entrepreneurs.
The project’s effectiveness will be judged by whether participants acquire useful capabilities, financial institutions improve their services and businesses gain better access to appropriate financing. For now, the announcement establishes an approved programme and its intended activities.
Source: African Development Bank official announcement.
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