NAIROBI, Kenya - A landmark partnership between the African Development Bank (AfDB) and the European Investment Bank (EIB) is quietly reshaping Kenya's vibrant technology landscape. The Boost Africa initiative, deployed in 2020, is tackling one of the biggest hurdles for the nation's entrepreneurs: access to early-stage risk capital. By investing in venture capital funds and providing hands-on technical support, the program is enabling a new generation of Kenyan startups to scale their innovations, create jobs, and attract significant international investment.

For Kenya, a continental leader in venture capital funding, the initiative provides a critical layer of support for its burgeoning 'Silicon Savannah'. While ideas are plentiful, many promising enterprises fail due to a lack of patient capital suited for long-term growth. Traditional lenders often require collateral that startups don't have, creating a funding gap that Boost Africa is designed to fill. Edward Claessen, Head of EIB Global's Regional Hub for East Africa, confirmed in October 2025 that the program supports incubators, accelerators, and fund managers who in turn invest in companies from inception to growth stages.

A Three-Pillar Strategy for Growth

The Boost Africa initiative operates on a three-pronged model designed to build a resilient entrepreneurial ecosystem. The joint initiative was launched by the EIB and AfDB, with financial backing from the European Commission and the Organisation of African, Caribbean and Pacific States (OACPS).

The core components are:

• An Investment Programme: This pillar funnels capital into venture capital (VC) and private equity (PE) funds that invest directly in high-potential startups. The EIB and AfDB each initially committed €50 million, aiming to mobilize a total of €1 billion in investments across the continent. As of 2024, the EIB's €78 million investment had successfully leveraged €382 million in new public and private funding.
• A Technical Assistance Facility: Recognizing that capital alone is not enough, this facility provides crucial capacity building. It helps make fund managers more effective and equips entrepreneurs with skills in governance, financial management, and strategy to become 'investor-ready'.
• An Innovation and Information Lab: Managed by the AfDB, this component acts as a catalyst for knowledge sharing, incubating new ideas and disseminating best practices across Africa's innovation ecosystems.

Tangible Impact on Kenyan Soil

The program's impact is most visible in the success of the Kenyan companies it has supported. Boost Africa works through intermediary funds active in Kenya, including Seedstars Africa Ventures, TLcom, Atlantica, and AfricInvest.

Notable Kenyan beneficiaries include:

• Shamba Pride: An agritech platform that has revolutionized the agricultural supply chain. Through support from the Seedstars Africa Ventures fund, it received an initial EUR 430,000. This backing helped the company grow its revenue from KSh 5 million to nearly KSh 300 million between 2021 and 2024 and expand its team from four to 40 employees. Today, it connects over 80,000 farmers with a network of more than 4,000 agro-dealers.
• Poa Internet: A provider of low-cost broadband internet to underserved communities. A 2024 impact study revealed that 62% of its users were newly connected to home Wi-Fi, and 70% of low-income households accessed the internet via Poa.
• Turaco: An innovative micro-insurance company aiming to shield underserved populations from financial shocks. The firm has received both financial and non-financial support through the initiative.

Speaking on the program's strategy in October 2025, Astou Dia, the Boost Africa Lead for Kenya, explained, “Our role is to help startups build operational capacity, refine governance and ESG systems, and become investor-ready.” The initiative prioritizes technology-enabled ventures in high-growth sectors such as fintech, agritech, healthtech, logistics, and renewable energy.

De-Risking Investment to Attract Private Capital

A key innovation of the Boost Africa model is its use of a 'junior' or 'subordinated' tranche investment structure. As explained by Edward Claessen in September 2025, the EIB agrees to absorb a portion of initial losses if a fund underperforms, thereby shielding private sector co-investors from risk. Conversely, if the fund is highly profitable, the EIB takes a smaller share of the profits, enhancing returns for other investors. This unique risk-reward model has been highly successful in encouraging private capital to flow into Africa's venture capital market, which historically receives less than 2% of global VC investment despite the continent being home to nearly 18% of the world's population.

As the current phase of Boost Africa concludes, its success has created rising demand for its services. The EIB has confirmed it is exploring new ways to expand its support for high-growth enterprises in Kenya and across Africa, signaling a continued commitment to fostering the continent's next generation of globally competitive companies.