Africa strengthens venture capital fund management capacity with €129m initiative

Africa strengthens venture capital fund management capacity with €129m initiative

€129 initiative targets investment in African funds

Africa’s venture capital ecosystem is gaining further support as development finance institutions and investment organisations focus on strengthening locally rooted fund managers, mobilising more private capital and improving access to growth financing for African businesses.

African entrepreneurs are building companies with the potential to reshape markets, create jobs and address everyday challenges at scale, but many continue to face difficulties accessing the capital required to grow. Strengthening the fund managers responsible for identifying and backing these businesses is therefore becoming an important part of efforts to expand venture investment across the continent.

Building stronger African venture capital managers

More than 200 fund managers from 20 countries and 80 venture capital firms are now part of the Africa Venture Finance Programme (AVFP) alumni network. The network brings together investors backing early- and growth-stage technology and technology-enabled businesses across Africa, creating a platform for continued knowledge sharing, collaboration and investment relationships.

The programme focuses on strengthening the capabilities of fund managers through academic research, practical investment experience and peer exchange. Its curriculum covers areas including venture debt, exits and the use of artificial intelligence in venture capital business models, alongside the investment decisions fund managers face across the investment cycle.

Andrew Mc Dowell, Director General of EIB Global, said: “Across Africa, entrepreneurs are building businesses with the potential to transform markets, create jobs and address pressing challenges. The Africa Venture Finance Programme supports the fund managers who can turn that opportunity into investment, helping promising companies secure capital, scale and deliver lasting economic value. EIB Global is very proud to implement such impactful initiative in Africa.”

Mobilising more capital for African businesses

Africa continues to present long-term opportunities for venture investment, supported by its entrepreneurs, expanding markets and increasing technology adoption. At the same time, African businesses continue to attract only a relatively small share of global venture capital.

Fund managers play a central role in addressing this financing gap by identifying promising businesses, providing capital and strategic support, helping companies scale and connecting them to additional sources of investment.

Ola Brown, General Partner at HealthCap Africa and AVFP Alumnus, said: “The value of the AVFP goes far beyond the week in Oxford. It brings together investors who face similar challenges across different markets and creates a trusted space to exchange ideas openly. Some of the relationships I built through the programme have continued long afterwards, becoming a source of advice, collaboration and new opportunities.”

The programme also brings together representatives of development finance institutions, institutional investors and established venture capital firms to examine ways of mobilising local and private capital for African funds and the businesses they support.

€129 million guarantee to support African fund investments

A successor initiative, Boost Ventures in Africa, is being launched with a €129 million guarantee from the European Commission to cover fund investments. The initiative will also provide technical assistance supported by an initial €4.5 million from the European Fund for Sustainable Development Plus (EFSD+).

The technical assistance will support both established and emerging fund managers as well as portfolio start-ups, with the broader objective of strengthening investment capacity and improving access to finance for innovative African companies.

The initiative builds on technical assistance provided through Boost Ventures in Africa Technical Assistance, delivered by the European Investment Bank Advisory and funded by the European Commission, alongside the AfricaGrow Technical Assistance Facility, provided through KfW and funded by the German Federal Ministry for Economic Cooperation and Development (BMZ).

Jozef Síkela, Commissioner for International Partnerships at the European Commission, said: “Africa is a continent of energy, talent and ambition. Through Global Gateway, we are working together with our African partners to translate this potential into tangible benefits for their citizens. This is what we are doing through the Africa Venture Finance Programme: helping to strengthen locally rooted fund managers and connect them with international capital, so that innovative African businesses can access the finance and expertise they need to grow.”

Expanding the venture capital ecosystem

The broader focus on fund-manager development reflects the importance of locally rooted investment expertise to Africa’s venture capital market. Investors and development finance institutions are increasingly looking at how stronger local fund-management capabilities can help mobilise additional capital and support companies through different stages of growth.

The AVFP alumni network, which now spans more than 200 fund managers across 20 countries and 80 venture capital firms, provides an ongoing channel for investors to exchange knowledge, share opportunities and develop relationships beyond individual programmes.

The continued development of fund-manager expertise, stronger investor networks and new financial guarantees is aimed at improving the flow of capital to African funds and, ultimately, to the innovative companies they back.

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