Boost Africa - empowering young African entrepreneurs
What is Boost Africa?
Africa has some of the world's fastest-growing economies and a young, quickly growing population. However, a consistent trend in young graduates leaving or failing to return home at the end of their studies is an increasing threat for the continent’s social, economic and technological progress.
Boost Africa, a joint initiative between the African Development Bank (AfDB) and the European Investment Bank (EIB), seeks to harness the continent’s potential, and create opportunity on the ground through:
- enabling and enhancing entrepreneurship and innovation across Africa
- creating new and quality jobs for young Africans
- contributing to the development of an efficient entrepreneurial ecosystem in Africa
- addressing the financing gap at the earliest and riskiest stages of enterprise creation
- developing and strengthening skills and expertise with young entrepreneurs
Boosting the entrepreneurial power of Africa’s young people will:
- create innovative and compelling modern businesses
- increase the capacity for these businesses to compete regionally and globally
- attract both domestic and foreign investment and diversify investor profile
- contribute significantly to job creation and economic growth
The idea is to become the premier platform to launch globally competitive companies from Africa.
Boost Africa stems from a belief in entrepreneurship and innovation, and that both can play a significant role in accelerating living standards and social progress in Africa by meeting the needs of the people.
It will support the development of affordable solutions to fundamental challenges affecting those at the base of the pyramid, from access to energy and healthcare to financial services, education and internet connectivity. Supporting start-ups also means sustaining the democratisation of the economy, in a context characterised by an unequal distribution of wealth and high barriers for newcomers to start a business.
Driving private sector growth is the priority for the EIB on the African continent. Boost Africa represents a new way for us to do that, in accordance with the Sustainable Development Goals, which call for the creation of good jobs and sustainable growth while alleviating the effects of poverty. This project does exactly that.
What are the components of Boost Africa?
Through this integrated approach, Boost Africa will both provide financial capital and develop human capital, helping fund managers and entrepreneurs to effectively deal with the many obstacles that arise when building new funds and new enterprises.
The overall target size across the various components of the initiative is expected to be around EUR 250m, leveraging EUR 1 billion in investments, supporting 1,500 SMEs and creating 25,000 direct jobs and at least 70,000 indirect jobs.
What types of sectors does Boost Africa target?
The focus will be on sectors where innovations can improve the quality of people’s lives, in particular that of poorer households, providing access to affordable products and services. These sectors include, but are not limited to:
- financial services and financial inclusion
- renewable energy
There will be a particular emphasis on intermediaries that focus on youth and women as final beneficiaries.