The African Development Bank (AfDB) and the European Investment Bank (EIB) have launched Boost Africa Venture Capital fund to invest in Africa’s young entrepreneurs and help harness their potential, and create opportunities.
With plans to raise up to €50 million ($62m) between them and over €200 million, ($250m) with third-party investors from the public and the private sector and leverage €1 billion ($1.1 billion) in additional investments through financial intermediaries.
Boost Africa expects to build a portfolio of 25 to 30 funds over a 7-8 year period to enhance entrepreneurship and innovation across Africa; create jobs for young Africans; improve Africa’s entrepreneurial ecosystem and address the early stage financing gap and develop their skills.
There will be a particular emphasis on intermediaries that focus on youth and women as final beneficiaries.
The overall target size across the various components of the initiative is expected to be around €250 million, leveraging €1 billion in investments, supporting 1,500 SMEs, and creating 25,000 direct jobs and at least 70,000 indirect jobs.