Investing in Young Businesses in Africa (IYBA)

Investing in Young Businesses in Africa (IYBA) is sponsored by European Union (Team Europe Initiative). This opportunity supports mission-aligned projects and measurable outcomes.

Investing in Young Businesses in Africa - International Partnerships Investing in Young Businesses in Africa TEI ‘Investing in Young Businesses in Africa’ The Team Europe Initiative ‘Investing in Young Businesses in Africa’ (TEI IYBA) was launched in 2021 to enhance entrepreneurship ecosystems and support early-stage businesses and micro, small and medium-sized enterprises (MSMEs) across Sub-Saharan Africa.

It provides access to finance, technical assistance, and investment opportunities to help businesses grow and create jobs. As a Global Gateway flagship initiative, TEI IYBA aims to build a strong pipeline of investment-ready companies, reduce investment risks through EU-backed mechanisms, and mobilise catalytic capital for Africa’s future.

It also serves as a central platform for European and African investors and private sector actors seeking information and opportunities related to EU-supported entrepreneurship initiatives.

TEI IYBA functions both as a p latform for dialogue and engagement with public and private stakeholders on entrepreneurship and MSME access to finance in partner countries, and as an umbrella framework coordinating regional programmes and EFSD+ guarantee instruments labelled under the initiative.

Since its launch, TEI IYBA has progressively expanded and now includes 8 co-funded regional programmes operating in more than 20 countries, as well as 7 IYBA-labelled EFSD+ guarantees designed to improve MSMEs’ access to concessional finance. Together, these represent a total volume of €312 million in programmes and €733 million in guarantees.

An initial mapping exercise conducted in 2021 identified 180 entrepreneurship-related programmes and projects funded and/or implemented by the EU and EU Member States, representing a combined investment of €4. 6 billion. Location: Sub-Saharan Africa (SSA) Current programmes cover Benin, Kenya, Senegal, South Africa, Togo, Mozambique, Tanzania, Uganda, Malawi and Cameroon.

From 2026, expansion will include: Ghana, Niger, Burkina Faso, Mali, Madagascar, The Gambia, Nigeria, Côte d’Ivoire, Ethiopia, Democratic Republic of Congo, Chad, Rwanda, Burundi and the Republic of Congo. Theme: Sustainable growth and decent jobs Total budget (EU and Member States): €4.

6 billion Programmes and instruments: 180+ regional and national programmes Core Team Europe members: 10 EU Member States: Belgium, France, Germany, Italy, Malta, Spain, Portugal, Slovakia, Sweden, The Netherlands European Investment Bank (EIB) European Bank for Reconstruction and Development (EBRD) Association of European Development Finance Institutions (EDFI) Other partners: African and European organisations supporting entrepreneurship, MSME associations, business support organisations, foundations, impact investors, venture capital funds, incubators, accelerators, and non-profit organisations.

Policy Steering Group (PSG): composed of the core Team Europe members to provide strategic guidance and define milestones. Management Team (MT): chaired by an EU Member State or development finance institution (DFI) on a rotational basis, working with the European Commission and a Technical Assistance team to implement the strategy. The MT also pools ongoing projects and highlights initiatives that can enrich IYBA practices.

Working Groups (WGs): dedicated groups for TEI members. Regional programmes co-funded and implemented by EU implementing partners, i.e. private and public development agencies and financial institutions. Africa faces a major employment challenge.

By 2035, the working-age population is expected to grow by 450 million people, while only around 100 million jobs are projected to be created. Entrepreneurship is already widespread, with 1 in 5 working-age Africans being an entrepreneur.

However, MSMEs face persistent barriers, including: Limited access to finance Insufficient mentoring and technical support Complex regulatory environments Gender and age-based inequalities The TEI IYBA aims to unlock Africa’s entrepreneurial potential by: Strengthening entrepreneurship ecosystems Building a pipeline of investment-ready businesses Scaling innovative solutions that drive sustainable growth and job creation Reducing investment risks through EU-supported financial instruments Mobilising catalytic capital for high-impact investments Providing data, insights, and market intelligence to investors and businesses The Team Europe Initiative ‘Investing in Young Businesses in Africa’ is structured around three complementary pillars : Support to very early-stage businesses (pre-seed): technical and financial support to entrepreneurs seeking initial financing to develop and validate their business ideas.

Support to early-stage businesses (seed, Series A, Series B): technical assistance and access to finance to help businesses scale, attract investment and reach new markets. Ecosystem support: strengthening entrepreneurship ecosystems to foster innovation and create an enabling environment for investment.

This includes: strengthening and connecting local ecosystems so they support businesses of all sizes, including the smallest actors supporting partner countries in developing regulatory and policy frameworks that enable businesses to start, grow and scale promoting a culture of entrepreneurship at all levels, including in education systems and through media engagement Through regional and national programmes implemented by a wide range of partners across Sub-Saharan Africa, the initiative provides grants, technical assistance and investment.

This includes seed and catalytic capital delivered through diverse financial instruments and intermediaries to support African entrepreneurs and businesses. The initiative also serves as a platform for dialogue and coordination among Team Europe partners.

Four thematic working groups have been established to facilitate in-depth exchanges on key priorities: Entrepreneurship ecosystem Women’s economic empowerment Public development banks and agencies (under discussion) These working groups contribute to identifying common challenges, aligning approaches, and fostering joint initiatives across Sub-Saharan Africa.

They play a key role in strengthening policy coherence, enhancing complementarities, and promoting a coordinated Team Europe approach. Programme design and implementation are closely coordinated by DG INTPA and implementing partners to ensure consistency, complementarity and overall impact across all TEI IYBA actions.

Programmes and instruments The TEI IYBA is an umbrella for regional and national programmes in over 20 countries aiming at strengthening entrepreneurial ecosystems, providing technical and financial support to entrepreneurs, creating a pool of investment-ready companies, reducing financial risks, and mobilising private capital through EU-supported mechanisms.

IYBA SEED (Support to Entrepreneurship Ecosystem Development) - € 23 Million (co-funded) - 2023-2027 IYBA SEED supports the strengthening of the entrepreneurship ecosystems in Togo, Benin, Senegal, Kenya, South Africa. It is implemented by Expertise France, Enabel, GIZ and SNV. IYBA Women Entrepreneurship for Africa (WE4A) - € 41.

4 Million - 2024-2027. IYBA Women Entrepreneurship for Africa provides technical and financial support to women entrepreneurs in Cameroon, Kenya, Malawi, Mozambique, Senegal, Tanzania, Togo, and Uganda. It is implemented by GIZ and the Tony Elumelu Foundation.

IYBA Market Creation Platform (MCP) - € 55. 7 Million - 2025-2032 While building an open architecture platform for public and private investors, the IYBA Market Creation Platform provides technical and financial support to investment funds and funds of funds in SSA. It is implemented by FMO.

IYBA Invest - € 28 Million (co-funded) - 2026-2041 IYBA Invest helps create and consolidate locally domiciled partner funds by providing first-loss risk capital to attract investors, leverage additional funding, and channel investments into those funds to finance early-stage MSMEs in SSA. It is implemented by FMO and Investisseurs & Partenaires. WIDU.

Africa - € 29 Million (co-funded) - 2025-2028 WIDU. Africa leverages remittances from the African diaspora in Europe into micro and small businesses in Cameroun, Côte d'Ivoire, Ethiopia, The Gambia, Ghana, Kenya, Mali, Senegal, Togo, Tunisia. Scaling up the already existing WIDU.

Africa programme, it is implemented by GIZ. Boost Africa - € 61 Million (co-funded) - 2020-2037 Boost Africa is an investment platform composed of two main investment components and two non-financial services (technical assistance, capacity building and knowledge transfers) components to enhance entrepreneurship and innovation across Africa.

Implemented by the EIB and AfBD, it invests in various African angel, private equity and patient capital funds targeting young businesses. EURIZ - € 26. 5 Million - 2017-2040 EURIZ is a technical assistance and risk-sharing blending facility targeting the financially under-served MSMEs.

Implemented by AFD and Proparco, it operates in the African, Caribbean and Pacific (ACP) countries. 7 EFSD+ guarantees 7 EFSD+ guarantees are IYBA-labelled and directly contributing to the objectives of the TEI: Choose Africa , MSME Platform (Plus) , Global Investment Equity Fund, Boost Ventures in Africa , Nasira+ , SDG Fund II , Terra . More information will follow on these flagship regional programmes.

For any questions or additional information about the TEI IYBA, please contact INTPA-E2 ec [dot] europa [dot] eu .