The European Investment Bank (EIB) has made significant strides to bolster economic support for small and medium-sized enterprises (SMEs) across Africa and particularly Madagascar with its recent announcement of a €15 million investment. This funding is directed toward the I&P Afrique Entrepreneurs 3 (IPAE 3) fund, aimed at nurturing local businesses with high growth potential.
During the EIB Group Day, which spotlighted the bank's initiatives, EIB Vice-President Ambroise Fayolle stood alongside Investisseurs & Partenaires (I&P) co-CEOs, Jérémy Hajdenberg and Sébastien Boyé, as they proudly announced this financial partnership. Fayolle expressed enthusiasm for the investment, stating, “I am very pleased to have signed this new investment with Investisseurs & Partenaires to support IPAE 3, an innovative and high-impact fund for entrepreneurs in Africa, particularly in West Africa and Madagascar.”
The IPAE 3 fund is characterized by its focus on key sectors such as agriculture, energy, health, and water, which are considered pivotal for driving sustainable growth and progressively addressing the challenges faced by these regions. This investment is also expected to create over 4,000 direct jobs, with at least 40% allocated for women, showcasing the EIB’s commitment to empowering female entrepreneurs.
The EIB aims to mobilize additional investments, estimating the overall funding to leverage up to 4.5 times the initial figure, thereby significantly increasing the available capital for high-potential ventures. Such initiatives are especially important for countries like Madagascar, where traditional investment avenues may present considerable challenges.
Sébastien Boyé, co-CEO of I&P, shared insights on the long-term partnership with the EIB, remarking, “We are especially proud to continue our long-term partnership with the European Investment Bank, which began almost 20 years ago. The commitment to IPAE 3 demonstrates confidence in our approach and expertise.”
Through this partnership, the EIB and I&P are not only investing financially but are also fostering responsible entrepreneurship, supporting innovation, and working to resolve some of the continent's most pressing challenges related to climate change and economic inclusion.
With forthcoming operations expected to roll out by 2024, this collaboration exemplifies the broader objectives outlined within the EU's Global Gateway strategy, which aims to support sustainable and inclusive growth on the African continent. Supporting initiatives like IPAE 3 falls under this strategic umbrella, aligning with goals of economic resilience and the promotion of equitable opportunities for underrepresented groups.
Overall, the injection of €15 million signals not just monetary support but also the establishment of valuable partnerships intended to stimulate local entrepreneurial ecosystems. The EIB's sustained investment initiatives contribute significantly to counters of economic distress, especially for those regions where private funding and resources are limited.
Ambroise Fayolle highlighted the importance of such collaborative efforts by emphasizing the role of the EIB as key players in development finance, noting the bank's aim to deliver nearly €3.1 billion of investments directed to impactful projects across Africa during 2024.
Through IPAE 3 and collective efforts between the EIB and I&P, the commitment to supporting SMEs, fostering gender inclusion, and addressing climate challenges offers hope and actionable pathways for economic development not only in Madagascar but throughout the African continent.