A new financing mechanism for African start-ups
The new structure will benefit from an initial capital of 100 to 150 million Euros.A new structure dedicated to the financing of African start-ups will soon start its activities, with an initial capital of 100 to 150 million Euros.
The African Development Bank (AfDB) and the European Investment Bank (EIB) will launch this joint project, named Boost Africa, on November 21 at the Africa Day 2016.
The project has yet to receive the green light from the Boards of Directors of both organisations, which is expected around mid-October, according to newspaper Jeune Afrique.
The objective for both institutions is to raise the structure's capital quickly to €200 million, a record amount for investment in innovative companies on the continent.
Funding issues remain the most important challenges to the development of MSMEs, often considered as the backbone of African economies.
According to the AfDB, the growth of these companies is also hampered by challenges to remain competitive in the global market and difficulties to meet national and international standards.