Market Creation Platform: Investing in young businesses in Africa

The Market Creation Platform of the Investing in Young Businesses in Africa (MCP-IYBA) is a pioneering initiative designed to advance EU development cooperation and the Global Gateway strategy. By tackling one of the most pressing barriers in frontier markets — the lack of investable projects — the platform plays a catalytic role in market creation, fostering conditions for sustainable public and private sector investment. 

Its ambition to work as a collaborative model, bringing together European development finance institutions (DFIs), donors, implementing agencies and private investors, has the potential to offer a scalable and replicable framework for aligning financial and policy objectives and contribute to the scale-up of the Global Gateway strategy. 

This paper looks at several areas for improvement. First, donor engagement needs to be more structured to align priorities and strengthen fundraising. Second, mechanisms to incentivise European DFIs and prevent free-riding should be reinforced to ensure co-financing. Third, stronger involvement of the European private sector as both implementers and investors would increase programme attractiveness and mobilise additional capital. Fourth, closer collaboration with implementing agencies could enhance ecosystem development and pipeline origination. Finally, a review of the financial model, including the integration of financial instruments and revolving approaches, is necessary to ensure long-term sustainability. 

The MCP-IYBA is well-positioned to become a cornerstone of the Global Gateway strategy, bridging technical assistance with investment, and enabling Team Europe to scale up high-impact, sustainable investments in strategic sectors.