The African Development Bank (AfDB), through its Innovation and Entrepreneurship Lab, has opened applications for a three-month capacity-building programme designed to equip African institutional investors with the knowledge and practical skills needed to invest in venture capital funds across the continent.
According to an announcement by I&P Ecosystems, the organisation implementing the initiative, the programme will bring together 80 participants from African institutions that already invest in venture capital or are considering making their first commitments to the asset class.
The initiative, known as the AfDB Capacity-Building Programme for Domestic Capital Providers, will provide practical training on how institutional investors can evaluate venture capital funds, assess investment opportunities and make informed decisions about allocating capital to African businesses.
Participation is free, and all training sessions will be conducted online in English.
The programme comes at a time when African startups and emerging businesses continue to seek long-term financing to support expansion, product development and job creation. Although financial institutions and other domestic investors control substantial capital across the continent, only a relatively small portion finds its way into venture capital funds supporting early-stage and high-growth businesses.
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Through the initiative, the African Development Bank hopes to address some of the knowledge and institutional challenges preventing local investors from participating more actively in the continent's venture capital market.
Why African investors are being encouraged to participate
One of the major concerns surrounding Africa's startup financing environment is the limited participation of domestic institutional investors in venture capital.
Pension funds, insurance companies, banks, family offices and other capital-holding institutions manage significant financial resources. However, much of this money is traditionally directed towards government securities, listed equities and other established investment opportunities.
While these investments remain important to institutional portfolios, limited allocations to venture capital have created a financing gap for fund managers seeking patient capital to support African entrepreneurs.
Venture capital provides financing to businesses with significant growth potential, particularly startups and young companies that may not yet qualify for conventional bank loans or other traditional financing arrangements.
However, investing in venture capital requires a different approach to risk assessment, portfolio management and long-term financial planning.
Many domestic institutions are yet to develop the internal expertise required to evaluate venture capital fund managers, understand investment structures and determine whether such commitments fit their existing investment policies.
The AfDB programme is intended to help bridge this gap by giving investment professionals practical exposure to the processes involved in evaluating and committing capital to venture funds.
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Rather than focusing exclusively on academic discussions, the training will draw on the experiences of established venture capitalists and investors who have previously backed African funds.
What participants will learn from the programme
The three-month initiative will combine eight practitioner-led online sessions, each lasting two hours, with a two-day applied online bootcamp.
The programme will cover approximately 26 hours of learning activities, alongside an initial survey and a final assessment designed to evaluate participants' progress.
Participants will examine the different stages of venture capital investment, including how funds are structured, how investment opportunities are assessed and how institutional investors can determine the appropriate amount to commit to a particular fund.
The training will also introduce participants to the relationship between limited partners and general partners in the venture capital industry.
Limited partners, commonly referred to as LPs, are investors that provide capital to investment funds. These may include pension funds, insurance companies, development finance institutions, family offices and other institutional investors.
General partners, known as GPs, are responsible for managing the funds, identifying investment opportunities and overseeing portfolio companies.
Understanding the relationship between both parties is important for institutions considering venture capital investments because it helps them assess the responsibilities, risks, costs and expected returns associated with a fund commitment.
Other areas of the programme will include fund strategy, investment due diligence, deal structures, valuation, portfolio construction and the financial arrangements between fund managers and investors.
Participants will also learn about environmental, social and governance considerations, as well as the impact expectations investors may require from the funds they support.
Practical training using African venture capital examples
A major feature of the initiative is its emphasis on practical learning.
Participants will work with real African fund cases, undertake due diligence exercises and participate in simulated investment committee discussions.
The two-day bootcamp is expected to help participants apply the knowledge acquired during the online sessions to investment decisions that reflect the realities of their respective institutions.
For example, a pension fund considering its first venture capital commitment may need to establish whether its investment mandate permits such an allocation, how much capital can be committed and how the investment would affect its overall portfolio.
A family office or corporate investment arm may face different considerations, including its investment objectives, liquidity requirements and tolerance for risk.
The programme will therefore organise participants according to their institutional profiles, allowing them to examine challenges relevant to their organisations rather than relying on a general investment framework.
Beyond the classroom sessions, participants will gain access to a community of more than 50 domestic and international capital providers.
Selected participants may also receive sponsored attendance at a future LP Peer Group convening, providing an additional opportunity to engage with other investors and industry professionals.
Institutions and professionals eligible to apply
The programme is designed for African institutions that hold or manage capital and either currently invest in venture capital or intend to make allocations to the sector.
Eligible institutions include pension funds, sovereign wealth funds, insurance companies, banks and other financial institutions.
Corporate investment arms, family offices, investment holding companies, foundations, endowments, local development finance institutions and asset management firms are also among the categories targeted by the initiative.
Applicants must represent institutions headquartered and legally domiciled in Africa, with capital deployed within the continent.
The programme is particularly interested in professionals who have the authority to make investment decisions or influence the investment strategies of their organisations.
These include chief investment officers, heads of investment, investment committee members, portfolio managers and principals.
Importantly, institutions do not need to have an existing venture capital portfolio to participate.
Organisations that are still considering whether venture capital should form part of their investment strategy are also eligible to apply.
This makes the programme relevant to both experienced institutional investors and organisations seeking the knowledge required to make their first commitment.
Women and investment professionals aged 35 and below are particularly encouraged to submit applications.
An institution may nominate up to two participants through a single application form.
Why the programme matters for Africa's investment market
The development of Africa's venture capital industry depends not only on the availability of promising startups but also on the ability of investors to provide sustainable financing.
Many African venture capital funds depend on international investors to raise the capital required to support businesses across different sectors.
Although foreign investment has played an important role in the development of the continent's startup ecosystem, greater participation from domestic institutions could help strengthen the local investment environment.
Domestic investors may bring a longer-term understanding of their respective markets, closer relationships with local businesses and greater familiarity with the economic conditions affecting entrepreneurs.
However, their participation requires more than access to investment opportunities.
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Institutional investors must understand how venture capital funds operate, how risks are distributed across portfolios and how investment commitments can be evaluated within existing regulatory and governance arrangements.
The AfDB initiative seeks to address these issues by developing the expertise of professionals responsible for managing institutional capital.
If participants are able to apply the lessons from the programme within their organisations, the initiative could contribute to increased domestic investment in African venture capital funds.
Programme schedule and application requirements
The capacity-building programme will run online between December 2026 and February 2027.
Participants are expected to attend all eight two-hour online sessions and the two-day applied bootcamp. They must also complete the short survey at the beginning and end of the programme.
Applicants are required to provide information about their institution, professional responsibilities, investment experience and current position on venture capital.
The application also requests details about the institution's approximate assets or capital under management, existing exposure to venture capital and the amount it could potentially allocate to African venture capital funds over the next two years.
Other questions cover investment decision-making, institutional diversity and the proportion of investments involving businesses founded or led by women and young entrepreneurs.
Applicants must also provide their LinkedIn profile and confirm that the information submitted is accurate and that they are authorised to apply on behalf of their institution.
The application process takes approximately five minutes. However, applicants are advised to review the questions before starting because the form does not allow them to save their progress and continue later.
The programme is free of charge, and applications are assessed by an evaluation team and selection committee. Information submitted by applicants will remain confidential and will only be presented in programme reporting in aggregated and anonymised form.
Application deadline and selection process
Applications are being received through the programme's online application portal.
The extended application notice supplied by the programme states that the deadline is Friday, November 20, 2026, at 23:59 GMT, with the selected cohort expected to be announced on November 27.
Applicants should confirm the extended deadline directly with the organisers because an earlier version of the programme information displayed November 13 as the closing date.
Interested institutions and professionals can obtain further information by contacting the programme team through info.lpfellowship@ietp.com.
Interested applicants can also access the online application portal to review the application requirements and submit their details.
About the African Development Bank's Innovation and Entrepreneurship Lab
The Innovation and Entrepreneurship Lab operates under the African Development Bank's Human Capital, Youth and Skills Development Department.
It is part of the Bank's broader efforts to strengthen entrepreneurship and support job creation across Africa.
The initiative is also connected to the Jobs for Youth in Africa Strategy and the Boost Africa Programme, a partnership between the African Development Bank and the European Investment Bank aimed at supporting high-potential startups and strengthening entrepreneurship ecosystems.
By equipping African institutional investors with the skills required to evaluate venture capital opportunities, the Bank is seeking to encourage greater participation from local sources of capital.
The new programme places particular emphasis on building the next generation of African limited partners who can help direct more institutional funding towards businesses with the potential to contribute to economic growth, innovation and employment across the continent.