Youth identity formation is a critical component of socio-political dynamics in urban Africa, particularly in Ethiopia where rapid population growth and urbanization have influenced youth engagement with political processes. The analysis is based on a review of secondary data from academic journals, government reports, and international development studies that focus on youth engagement with local governance structures. The nuanced relationship between youth identity and their actual political engagement suggests the need for tailored policy interventions that address underlying socio-cultural factors to promote inclusive democratic practices. Policy makers should consider integrating community-based programmes that acknowledge and value diverse youth identities, fostering environments where young people feel empowered to participate in governance structures.