The 2006 Nobel Peace Laureate, who is known for his social business movement, called for a redesign of systems, which will offer a good environment for enterprises that will transform the lives of communities and the continent.
He said global warming can be handled through such enterprises with a good cause.
"When you look globally, all the progress taking place in the world, Africa as a continent seems to be on the lower end of the line. And I have been celebrating that because all the times I say things that we do today are done in the wrong way," said Prof Yunus.
"We designed our lives, thinking, everyday action completely on wrong premises. As long as we continue on the same premises and thoughts the finishing line will get closer and it will be over."
Prof Yunus said the answer lies in promoting entrepreneurship and developing holistic individuals who will come up with innovations to solve the continent's challenges.
"If the world survives, and that is a big if, Africa will be providing the leadership. It will not be the one that follows everybody else no more," he said. "Africa will lead the way. They will be quick to build a new civilisation because they have no baggage to carry. This is the direction we want to go."
Prof Yunus, a Bangladeshi, is in the country to advocate for social entrepreneurship as the solution to Africa's challenges like unemployment through the summit.
Education system
The summit's theme is Unleashing the Entrepreneurial Spirit in East African Youth. It is being held at the Tangaza University College, Nairobi, and ends tomorrow.
The college's director of Institute for Social Transformation, Dr Jonas Dzinekou, noted that education institutions need to relook their programmes to ensure the individuals who are released into the market have the ability to develop solutions that can solve the challenges around them.
"Are we part of the problem? Are we offloading people in the society who are not prepared? If this is what we do, then we are part of the problem. Our gathering here, I think, we have to stress that we are part of the solution," he said. "We are in a privileged space to influence the next generation and the tool is in our hands is education." Prof Yunus said the challenges faced by the continent should not be treated as problems but opportunities.
"We talked about unemployment in Africa. I think that is an opportunity now. It is because we do not want to be employed. That's the basic thing. and that's the message," he said.