In an analysis published on Wednesday 10 September, the European Centre for Development Policy Management (ECDPM) has identified five areas for improving the Market Creation Platform of the ‘Investing in Young Businesses in Africa’ (MCP-IYBA) initiative, launched in 2021 by the European Commission to stimulate European investment in Africa as part of the Global Gateway strategy.
The authors have identified a number of structural weaknesses that limit the impact of the scheme. These include the scarcity of bankable projects considered sufficiently solid to attract investors, insufficient coordination between funding bodies and project implementation agencies, and the still too limited involvement of the European private sector.
Five recommendations are made: - better structure donor engagement; - strengthen incentives for co-financing by development finance institutions; - greater involvement of private investors; - intensify collaboration with implementing agencies; - review the platform’s financial model to ensure its sustainability.
The experts believe that, overall, the ‘MCP-IYBA’ platform is well placed to become a “cornerstone” of Global Gateway, bridging the gap between technical assistance and investment and enabling the EU, its Member States and other organisations, through the ‘Team Europe’ approach, to scale up high-impact sustainable investments in strategic sectors.
An initial mapping exercise carried out by the European Commission in August 2023 identified 180 programmes and projects covered by the IYBA initiative, totalling €4.6 billion.
See the ECDPM report: https://aeur.eu/f/ifs
Further information on ‘IYBA’: https://aeur.eu/f/ifv (Original version in French by Bernard Denuit)