Author: Riitho

FSD Africa, FSD Africa Investments and GIZ join forces to help more investment reach Africa’s real economy

Posted on by Riitho

Hamburg, 1 July 2026 – FSD Africa, FSD Africa Investments (FSDAi) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH have signed a Memorandum of Understanding that formalises a collaboration to help channel more investment into Africa’s real economy.

The partnership brings together complementary expertise in market development, investment and technical assistance to identify investment opportunities, develop financial solutions, connect African and European investors with opportunities across the continent, and strengthen financial markets that support investment in climate, nature, carbon markets and financial inclusion.

Together, the organisations will work to:

  • Develop investment opportunities by sharing pipelines, exploring co-investment opportunities and working together on priority transactions.
  • Mobilise capital by engaging institutional investors, development partners and funders from Africa and Europe to support investment in climate, nature, carbon markets and financial inclusion.
  • Design investment solutions by combining GIZ’s structuring expertise with FSD Africa’s market development experience and FSDAi’s investment capabilities.
  • Share knowledge and strengthen markets through joint research, thought leadership, market convenings and the dissemination of practical lessons.

 

The Memorandum of Understanding will initially run for three years, with regular reviews to assess progress and identify new areas for collaboration.

Mark Napier, Chief Executive Officer of FSD Africa, said:

” No single organisation has all the pieces needed to turn opportunities into investment at scale. GIZ brings technical expertise and strong European partnerships. We bring deep knowledge of African financial markets, experience designing investment solutions, and the ability to invest where markets are still developing. Together, we can help connect more investors with opportunities that might otherwise struggle to attract capital.”

 

Anna Sophie Herken, Managing Director of GIZ, said:

“Across Africa, there is a wealth of innovation, promising businesses, and attractive investment opportunities. What is often missing are the right financial structures connecting investors with these opportunities at scale. This Memorandum of Understanding creates a framework for deeper collaboration between FSD Africa, FSD Africa Investments, and GIZ allowing us to combine our respective strengths – from investment expertise and catalytic capital to technical assistance in market development and investor engagement. Together, we aim to mobilise more private capital from both domestic and international investors into Africa’s real economy and ensure that finance works more effectively for sustainable development, climate resilience, job creation and economic growth.”

 

For more information/queries on FSD Africa, FSDAi and GIZ, please contact:

FSD Africa

Mireille Ferrari, Director, Strategic communications

mireille@fsdafrica.org

 

GIZ

Anna-Sophia Elm, ICAMA Initiative, GIZ

anna-sophia.elm@giz.de

 

About Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is an enterprise owned by the Government of the Federal Republic of Germany that provides services worldwide in the field of international cooperation for sustainable development. GIZ has over 50 years of experience in a wide variety of areas, including economic development and employment, energy and the environment, and financial sector development. The German Federal Ministry for Economic Cooperation and Development (BMZ) is the main commissioning party. To foster successful interaction between development policy and foreign trade as well as mobilise private capital for sustainable development, GIZ also closely cooperates with the private sector. On behalf of the commissioning parties and together with its partners, GIZ works in over 120 countries to deliver flexible and effective solutions that offer people better prospects and sustainably improve their living conditions. For more information, visit: https://www.giz.de/en.

FSD Africa Investments backs iungo Capital to unlock East Africa’s missing middle

Posted on by Riitho

Nairobi, 30 June 2026 — FSD Africa Investments (FSDAi) today announced a US$1.25 million commitment in iungo Capital, a lender that provides growth financing to small businesses across East Africa. The investment will strengthen iungo’s capital base, enabling them to borrow more and accelerate lending to businesses that struggle to access finance. 

Small and growing businesses (SGBs) are the engines of East Africa’s economies. They drive employment, anchor local value chains in food, manufacturing and trade, and form the backbone of communities across Uganda, Kenya, Rwanda and Tanzania. Despite their outsized economic role, these businesses are systematically shut out of affordable finance: they are too large for microfinance yet still perceived to be too early and risky for traditional banks. 

iungo capital was built specifically to fill this gap. Operating across Uganda, Kenya, Rwanda, and Tanzania, iungo provides USD-denominated loans of USD 250,000 on average in a first round, pairing capital with targeted technical assistance to strengthen business performance and support long-term growth. Since its inception, iungo has deployed over US$25 million across +60 businesses, building a resilient and diversified portfolio with strong credit performance while supporting job creation and inclusive economic growth across the region. 

FSDAi’s investment is made through its Nyala Facility, which provides flexible capital to support innovative financing models and Alternative Local Capital Providers (ALCPs), using its catalytic position to crowd in follow-on investment from institutional investors. This catalytic approach, combining patient, long-term capital with active partnership and enhanced governance support, reflects FSDAi’s broader commitment to building stronger, more inclusive financial markets across Africa.  

The investment is expected to support the creation or preservation of 800 jobs across East Africa, finance at least 30 businesses over the investment period, many which are founded, owned, or led by women. 

 

Announcing the investment, FSDAi’s Chief Investment Officer, Anne-Marie Chidzero, said: 

“iungo is an important emerging capital allocator, demonstrating how locally rooted fund managers can address the persistent financing gap faced by small and growing businesses across East Africa. By combining deep market knowledge with flexible financing, iungo is building a credible and scalable form of finance for SGBs. FSDAi’s catalytic investment will help de-risk the opportunity, crowd in institutional capital and enable iungo to scale its proven model across the region.”

Roeland Donckers, iungo Capital’s Managing Partner, underscored the significance of the investment, stating:

“Over the past 10 years, iungo capital has consistently targeted the biggest segment of SMEs with unmet finance needs, a traditional segment where local banks and many impact investment funds have gradually moved away from. FSDAi’s investment will help us catalyse the growth of a proven model, not just by its capital and the structure of the same, but also by providing technical assistance and indicating investor confidence to the wider market.”

 

For more information/queries on FSD Africa Investments and iungo Capital, please contact:  

FSD Africa Investments  

Joyce Waihiga, Manager, Communications, FSDAi 

joyce@fsdafrica.org

 

iungo Capital 

Roeland Donckers, Managing Partner 

roeland@iungocapital.com 

 

About FSD Africa Investments (FSDAi) 

FSD Africa Investments (FSDAi) is a specialist financial sector investor established by FSD Africa and the UK’s FCDO to strengthen and deepen Africa’s financial markets. We bridge critical funding gaps by investing patient, risk-bearing capital in novel financial instruments, facilities, and intermediaries. Our strategic investments take on early risk, test new models and catalyse capital from others to gradually transition the financial sector to finance Africa’s economic resilience and growth. To date, FSDAi has committed £127 million from its £309m capital commitment to 21 investments, and has successfully exited three investments, one at 2x money. For more information, visit: www.fsdafrica.org/fsdai 

 

About iungo Capital 

iungo Capital B.V. is a Netherlands registered investment holding company that provides mezzanine debt financing to traditional SMEs across East Africa. In Uganda, Kenya, Rwanda, and Tanzania, iungo offers USD-denominated loans of up to US$500,000 in a first round, to businesses in labour-intensive sectors, including agri-processing and light manufacturing. Since inception, iungo has deployed over US$25 million across +60 businesses, pairing capital with targeted technical assistance to build resilient, high-impact portfolios that drive job creation and inclusive economic growth. Over 80% of iungo’s portfolio has been consistently 2X aligned.  For more information, visit: www.iungocapital.com 

FSD Africa to advise on the US$300 million Kenya Blue-Green Bond programme announced at the 11th Our Ocean Conference

Posted on by Riitho

Mombasa, Kenya, June 2026 – Jumuiya ya Kaunti za Pwani (JKP), the regional economic bloc representing Kenya’s six coastal counties, in partnership with the Nairobi Securities Exchange (NSE), FSD Africa, the United Nations Development Programme (UNDP), the Kenya Maritime Authority (KMA), and the Kenya Ports Authority (KPA), today announced the US$300 Million Kenya Go Blue-Green Bond Programme, a landmark sustainable finance initiative designed to mobilise long-term capital for Kenya’s blue economy and climate resilience priorities.

The Kenya Go Blue-Green Bond Programme seeks to unlock at least US$300 million for strategic investments in fisheries, aquaculture, maritime infrastructure, ports, coastal tourism, biodiversity conservation, blue carbon, climate resilience, sustainable coastal livelihoods, and value-added blue economy enterprises.

The Programme is expected to catalyse investment, create quality jobs, strengthen coastal value chains, expand opportunities for women and youth, support ecosystem restoration, and enhance the resilience of coastal communities while contributing to sustainable economic growth.

A key pillar of the Programme is the scaling of blue carbon initiatives, including mangrove restoration and conservation, to support biodiversity protection, carbon sequestration, ecosystem recovery, and community-based climate finance while advancing Kenya’s climate and sustainable development objectives.

The announcement was made on the margins of the 11th Our Ocean Conference in Mombasa, where public institutions, development partners, investors, and private sector stakeholders signed a Joint Declaration establishing the Kenya Go Blue-Green Bond Joint Technical Committee. The Committee will lead programme preparation, project pipeline validation, investor engagement, resource mobilisation, governance design, feasibility assessments, and the development of an issuance roadmap.

The Programme is aligned with Kenya Vision 2030, the Fourth Medium-Term Plan (MTP IV), and the Bottom-Up Economic Transformation Agenda (BETA), which recognise the blue economy as a strategic frontier for economic growth, job creation, climate resilience, and sustainable development.

The initiative reflects the priorities articulated by H.E. President William Samoei Ruto during the 11th Our Ocean Conference, where he called for accelerated implementation of ocean commitments, increased investment in ocean-based adaptation, stronger regional collaboration, and practical solutions capable of translating commitments into tangible outcomes for communities, livelihoods, and ecosystems.

Building on this vision, Cabinet Secretary for Mining, Blue Economy and Maritime Affairs, H.E. Hassan Ali Joho, underscored the importance of mobilising innovative financing solutions to unlock the full potential of Kenya’s blue economy. He specifically called for the creation of an enabling investment environment to support blue bonds and other resource mobilisation strategies for ocean investment while accelerating investment in sustainable fisheries, coastal development, marine conservation, and ocean-based climate resilience initiatives.

Speaking on behalf of the coastal counties, H.E. Maj. (Rtd.) Dr. Dhadho Godhana, Governor of Tana River County and Chairman of Jumuiya ya Kaunti za Pwani, welcomed the initiative as a transformative platform for regional development.

“The Kenya Go Blue-Green Bond Programme provides a pathway to unlock long-term investment into coastal infrastructure, fisheries, aquaculture, tourism, environmental conservation, and climate resilience. It is about creating jobs, expanding economic opportunities, empowering women and youth, strengthening community livelihoods, and securing a sustainable future for Kenya’s coastal communities.”

 

Dr. Emmanuel Nzai, Chairman of the Kenya Vision 2030 Delivery Board and Chief Executive Officer of Jumuiya ya Kaunti za Pwani, described the Programme as a flagship financing platform for Kenya’s coastal transformation.

“This milestone marks the transition from strategy to execution. Through the Kenya Go Blue-Green Bond Programme, we are bringing together government, development partners, investors, and the private sector to establish a scalable financing platform capable of accelerating sustainable growth, strengthening climate resilience, restoring critical ecosystems, and improving livelihoods across Kenya’s coastal region.”

 

The Kenya Go Blue-Green Bond Programme has been accelerated through the Nairobi Securities Exchange’s Sustainable Finance Centre of Excellence, which has supported ecosystem convening, capacity building, investor readiness, sustainable finance structuring, project preparation, and strategic stakeholder engagement. As a member of the African Natural Capital Alliance, NSE is committed to advancing the protection of natural capital by providing a trusted platform for capital mobilization and fostering an enabling environment that promotes sound governance, transparency, and integrity in sustainable financing.

As the capital markets partner to the Programme, the Nairobi Securities Exchange will work with stakeholders across the capital markets ecosystem to develop robust capital pathways, strengthen issuer readiness, facilitate investor engagement, mobilise long-term domestic and international capital, and support future issuances under the Programme.

Cecilia Bjerborn Murai, Principal Specialist, Sustainable Finance at FSD Africa, welcomed the initiative as an important milestone for sustainable finance in Africa.

“The Kenya Go Blue-Green Bond Programme demonstrates how innovative capital market solutions can mobilise long-term investment for economic growth, climate resilience, and environmental stewardship. It represents an important step towards establishing a scalable African model for blue-green economy financing.”

 

FSD Africa and UNDP will provide sustainable finance expertise, technical assistance, capacity building, and resource mobilisation support throughout programme implementation.

The partners have committed to immediately commence programme implementation activities, including establishing governance structures, validating project pipelines, engaging regulators and strategic partners, mobilising technical assistance, and undertaking the feasibility and structuring work necessary to support future issuances under the Kenya Go Blue-Green Bond Programme.

The Programme will adopt an impact measurement framework aligned with international sustainable finance standards, tracking economic, social, climate, biodiversity, blue carbon, gender, and youth outcomes to ensure measurable benefits for communities, investors, and ecosystems.

Through the Kenya Go Blue-Green Bond Programme, Kenya is laying the foundation for a scalable African model for mobilising private capital into the blue economy, demonstrating how innovative finance can accelerate sustainable development, strengthen climate resilience, protect marine ecosystems, and create lasting prosperity for future generations.

 

About the Kenya go Blue-Green Bond programme

The Kenya Go Blue-Green Bond Programme is a collaborative initiative involving Jumuiya ya Kaunti za Pwani (JKP), the Nairobi Securities Exchange (NSE), the Kenya Vision 2030 Delivery Board, the Kenya Ports Authority (KPA), the Kenya Maritime Authority (KMA), FSD Africa, the United Nations Development Programme (UNDP), coastal county governments, development partners, investors, and other strategic stakeholders.

The Programme seeks to develop innovative financing mechanisms, including blue bonds, green bonds, and other sustainable finance instruments, capable of mobilising long-term capital for sustainable coastal and marine development while positioning Kenya as a leading hub for blue economy finance and advancing inclusive, climate-resilient growth.

Responsible investing turns 20. The next chapter must be written where the risks are sharpest, and the opportunity greatest.

Posted on by Riitho

An FSDAi perspective on the PRI’s Future of Responsible Investing report, on the occasion of the PRI’s 20th anniversary panel held in Johannesburg on 14 May 2026.

Twenty years ago, a small group of asset owners signed the Principles for Responsible Investment and changed the language of finance. Today, the practices they helped codify are the operating vocabulary of a global industry. This year, the PRI marked that anniversary by asking a harder question: what does the next twenty years require? 

Its new report, The Future of Responsible Investing (FoRI), distils the views of 120 organisations into two clear ambitions. First, that responsible investing becomes all investing: a core discipline of every CIO and investment team, not a parallel track run by a sustainability unit. Second, that responsible investing evolves to confront the system-level risks, from climate and nature to demographics, geopolitics and the governance of new technologies, that now define the operating environment for long-term capital. 

Both ambitions matter to FSD Africa Investments (FSDAi). We operate where global capital meets African opportunity, and we believe that the next chapter of responsible investing will be written in the markets where the Principles have been hardest to apply. 

FSDAi’s CIO, Anne-Marie Chidzero, speaking on the panel at PRI’s 20th anniversary celebration.

 

FSDAi’s Chief Investment Officer, Anne-Marie Chidzero, joined panellists from 27Four, Old Mutual and Value Capital Partners, moderated by the PRI’s Nathan Fabian, to debate exactly that question. Her message was direct: 

“Responsible investing must become all investing, and Africa cannot be left out. Climate, nature, demographics, the governance of AI: these are not future risks on our continent. They are daily life. The real opportunity is to stop treating Africa as the hardest place to invest responsibly, and start treating it as the place where the next generation of responsible investing gets built.”

Anne-Marie Chidzero, Chief Investment Officer, FSD Africa Investments.

Where FSDAi’s work meets the FoRI agenda 

The report identifies five practical actions for asset owners who want to lead the next two decades: speaking out on shared interests, raising the visibility of CEOs and CIOs, being transparent with investment managers, engaging policymakers, and supporting innovation through capital allocation. The last of these lands closest to our mandate, and it works on two fronts.  

The first is the call to use innovative financing mechanisms, including blended finance, to channel more capital into emerging markets. At FSDAi we deploy catalytic capital to do exactly that, building investable opportunities in green finance, capital markets development and digital finance that institutional investors can credibly follow.  

The second is being one of the first to take risk early where commercial capital will not yet go. By backing novel instruments, early-stage funds and underserved markets, FSDAi creates the track record, structures and conditions that allow far larger pools of capital to follow. This is responsible investing as system-building. 

What we want from the next 20 years 

The FoRI report is candid about what asset owners need from the PRI: amplifying asset owner voices, including those beyond the largest northern institutions; convening with purpose; supporting investor education; and engaging policymakers while respecting regional context. 

From an African vantage point, those priorities are essential. The PRI’s “broad tent” only stays broad if it accommodates investors where regulatory frameworks are still maturing, data is patchy, and the trade-offs between development, decarbonisation and decent work are most acute. Africa is also home to a rapidly growing pool of pension and sovereign capital. The next two decades will determine whether it is mobilised for long-term, sustainable returns, or allocated to the same old playbook. 

We agree with the report’s central conclusion: the original six Principles remain fit for purpose. The task now is interpretation, application and discipline, and no asset owner can do it alone. FSDAi is committed to playing its part: as a development finance investor putting catalytic capital where the system needs it most, as a partner to African capital market builders, and as a PRI signatory that intends to be heard.  

 

Responsible investing is no longer a choice. It is the only investing that makes sense. 

 

 

The PRI report, “The Future of Responsible Investing” (April 2026), is available at unpri.org. 

FSD Africa supports Fund Managers’ Association (FMA) of Kenya’s transition to Self-Regulatory Organisation (SRO) status

Posted on by Riitho

FSD Africa and the Fund Managers’ Association of Kenya (FMA) are pleased to announce a strategic partnership under which FSD Africa will provide financial and technical support to FMA as it embarks on a transformative journey towards becoming a Self-Regulatory Organisation (SRO).

As an SRO, the FMA will transition into a non-government organisation able to establish, monitor, and enforce industry standards and regulations. By tapping into best practices in the global fund management industry, FMA will support the regulator in ensuring that its members conduct themselves ethically and legally, helping protect investors and maintain market integrity. Ultimately, this will boost investor confidence in Kenya’s fund management industry, attracting even bigger investment through pooled funds. The initiative marks a significant milestone in the evolution of FMA, which has represented Kenya’s licensed fund management industry for the past 18 years. As Kenya’s capital markets continue to deepen and mature, FMA believes that pursuing SRO status is the next progressive step to strengthen industry standards, enhance investor confidence, promote professional excellence, and support the long-term development of the asset management sector.

FSD Africa’s support reflects a shared commitment to building stronger financial markets and mobilising long-term domestic capital to support economic growth and sustainable development.

Dr Evans Osano, Chief Financial Markets Officer at FSD Africa, said:

“A strong and well-governed asset management industry is critical to the growth and resilience of Africa’s financial markets. FMA has played an important role in advancing professionalism, stewardship and market development in Kenya’s investment management sector. We are pleased to support the Association as it explores the path towards SRO status, which has the potential to strengthen market integrity, improve industry standards and contribute to a more robust investment ecosystem.”

Nicholas Ithondeka, Chair of the FMA Council, said:

“This support comes at a defining moment for the Association. Over the past 18 years, FMA has evolved into a respected voice for the fund management industry. Pursuing SRO status represents a natural progression in our institutional development and demonstrates our commitment to raising standards, strengthening accountability and supporting the continued growth of Kenya’s capital markets.”

Fred Mburu, Chief Executive Officer of FMA, said:

“We are extremely pleased by FSD Africa’s affirmation of the important work and ambitions of the Association. This partnership is not only an investment in FMA as an institution, but also in the future of Kenya’s investment management industry. The journey towards SRO status reflects our members’ collective vision for a stronger, more professional and globally competitive asset management sector that serves investors and contributes meaningfully to national development.”

The project will involve stakeholder engagement, international benchmarking, technical assessments and the development of an implementation roadmap to evaluate and support the transition towards an effective self-regulatory framework.

3IF Ventures Reaches USD 12 Million First Close to Scale Africa’s Inclusive Insurance Market

Posted on by Riitho

FSD Africa Investments and ZEP-RE co-anchor pioneering pan-African insurance impact fund; pathway to USD 30 million final close.

 

Mauritius – 5 June 2026 – 3IF Ventures (or the “Fund”), the first impact venture capital fund dedicated to Africa’s insurance start-up ecosystem, today announced the First Close of the Inclusive Insurance Investment Fund (3IF Ventures) at USD 12 million. The fund is co-anchored by FSD Africa Investments (FSDAi) and ZEP-RE (PTA Reinsurance Company), and will provide equity capital from pre-seed to Series B to early-stage businesses across Africa.

Africa’s insurance protection gap is one of the most underserved opportunities but also one of the most significant barriers to economic resilience on the continent. Uptake remains constrained by three persistent challenges: awareness, accessibility, and affordability resulting in over 1 billion people not having access to any form of insurance cover. 3IF Ventures is built to convert that untapped market into a commercial opportunity by backing technology-enabled insurance businesses across four thematic verticals: climate and disaster resilience, agriculture and rural livelihoods, digital health and wellbeing, SMEs and asset protection. The Fund, which targets a final close of USD 30 million, plans approximately 15-20 portfolio investments. 3IF Ventures will also operate a technical assistance facility sized at approximately 20 percent of total fund commitments.

3IF Ventures is structured as a blended investment vehicle including a catalytic capital junior tranche used to unlock private capital. The Fund intends to achieve substantial socio-economic impact and climate resilience in Africa over the Fund’s lifetime, targeting:

  • Over 5.9 million new insurance policies issued;
  • Over 3.5 million households and SMEs with improved financial resilience;
  • Over 1.7 million jobs created, sustained and retained.

 

“Reaching First Close with FSD Africa Investments and ZEP-RE on the same cap table is a market signal: impact and private capital are now investing in the same insurance technology pioneers. Africa’s protection gap is the most under-served commercial opportunity of the decade, closing it requires patient capital, local risk capacity and industry-grade portfolio support, working in concert. With a pre-qualified pipeline of fifteen insurance ventures across ten African markets, we are ready to deploy capital and look forward to engaging with strategic private and public partners as we enter the next stage of our growth.”

Anthony Chaillet and Dr. Mario Wilhelm, General Partners, 3IF Ventures said.

 

“FSDAi’s investment in 3IF Ventures reflects our conviction that the insurtech sector is ready to scale – built on a pipeline of 135 early-stage businesses supported through BimaLab. As the first investment vehicle dedicated to inclusive insurance in Africa, 3IF Ventures brings institutional rigour to a segment that has long lacked it. This first close proves that when sector expertise, the right capital structure and the right partners align, the protection gap becomes an investable proposition.”

Anne-Marie Chidzero, Chief Investment Officer, FSD Africa Investments said.

 

“The fund aligns with our mission to deliver sustainable and innovative (re)insurance solutions through collaboration with private, public and development sector partners to close the protection gap and promote economic growth. The Fund will assist in bringing together like-minded partners and capital providers to support technology enabled insurance businesses that help in closing the protection gap across Africa. Beyond the capital injection, ZEP-RE will offer further support to the investee companies through its technical experience in the (re)insurance ecosystem such as product design and leverage off its existing networks among primary insurers and regulators to provide underwriting capacity and an enabling regulatory environment for investees to achieve shared success across the continent.”

Hope Murera, Managing Director and Group CEO, ZEP-RE (PTA Reinsurance Company) said.

 

About 3IF Ventures

3IF Ventures is the General Partner and Investment Manager of the Inclusive Insurance Investment Fund – the first impact venture capital fund dedicated to Africa’s insurance start-up ecosystem. The fund invests from pre-seed to Series B businesses solving the “3A Challenge” (Access, Awareness, Affordability) across ODA-eligible African markets. The Fund is led by Anthony Chaillet and Mario Wilhelm, two seasoned re/insurance experts and investment professionals with over 40 years of combined industry experience globally. www.3if.ventures.

 

About FSD Africa Investments

FSD Africa Investments (FSDAi) is a specialist financial sector investor established by FSD Africa and the UK’s FCDO to strengthen and deepen Africa’s financial markets. We bridge critical funding gaps by investing patient, risk-bearing capital in novel financial instruments, facilities, and intermediaries. Our strategic investments take on early risk, test new models and catalyse capital from others to gradually transition the financial sector to finance Africa’s economic resilience and growth. To date, FSDAi has committed £127 million from its £309m capital commitment to 21 investments, and has successfully exited three investments, one at 2x money.

 

About ZEP-RE (PTA Reinsurance Company)

ZEP-RE is a leading pan-African reinsurer and specialised institution of COMESA established in 1990 with a mandate to develop the (re)insurance industry, build capacity, mobilize investments and deepen financial inclusion. It has operations in over 45 African countries with headquarters in Nairobi, Kenya and eight country/regional offices spread across Sub-Saharan Africa in Côte d’Ivoire, D.R. Congo, Ethiopia, Sudan, Uganda, Zambia, and Zimbabwe. ZEP-RE’s subsidiary ACRE Africa focuses on resilience and credit access for small-holder farmers through technology and insurance with 6 offices across Africa. It is the second best rated African reinsurer on the continent by A.M. Best with a credit rating of B++ (Financial Strength)/bbb+ (Issuer Credit). www.zep-re.com.

 

Media Contacts

3IF Ventures

Mario Wilhelm, General Partner (mario@3if.ventures)

Anthony Chaillet, General Partner (anthony@3if.ventures)

 

FSD Africa Investments

Joyce Waihiga, Manager Communications (joyce@fsdafrica.org)

 

ZEP-RE

Kasee Mbao, Head M&A and Advisory (kmbao@zep-re.com)

Behind the Investment: Africa’s First Nature-Linked Outcomes Bond

Posted on by Riitho

On 31 March 2026, FirstRand Bank Limited made history as the first commercial bank globally to issue an outcomes-based bond that directly links investor returns to verified ecological and environmental restoration outcomes. Listed on the Johannesburg Stock Exchange (JSE), and anchored by FSD Africa Investments (FSDAi) and the International Finance Corporation (IFC), the R2.5 billion bond will fund the large-scale removal of invasive alien plants (IAPs) that are quietly draining one of South Africa’s most critical water supply systems.

 

The market failure behind the bond

Two-thirds of the sub-catchments feeding the Western Cape Water Supply System are invaded by alien plant species that consume the equivalent of two months of Cape Town’s entire water supply each year. The most cost-effective solution — removing those plants — has been known for some time. What has been missing is the financing architecture to do it at scale. While ecological restoration delivers real, measurable value, those benefits accrue diffusely across households, municipalities, agriculture and industry, making them difficult to price, monetise or verify in ways that meet institutional investment standards. As a result, conservation has remained heavily dependent on fragmented public and philanthropic funding, while private capital stays largely on the sidelines unable to engage at the scale required.

 

What the bond does differently

The Cape Water Performance-Based Bond was designed to address this challenge by embedding conservation outcomes directly into a conventional fixed income security.

Investors receive a base return with an additional success premium linked to independently verified outcomes, specifically the number of hectares of invasive alien plants cleared from priority catchments. Philanthropic and development funders (outcome-based funders or OBFs) underwrite this premium but only pay when results are achieved. If the agreed outcomes are not delivered, the OBFs’ capital is returned for redeployment.

This pay-for-success model aligns all investors’ interests by not only ensuring that philanthropic funding is used efficiently, but also transferring performance risk to the market, and providing commercial investors with a clear and credible pathway into conservation finance.

The result is a R2.5 billion bond listed on the JSE, drawing in institutional investors including Aluwani Capital Partners, Ashburton Investments, and the Eskom Pension and Provident Fund.

 

Why FSDAi moved first

FSDAi committed R234 million to the bond as one of its anchor investors. Beyond our capital investment, our commitment served three purposes:

The first was validation. FSDAi’s participation in an instrument this novel signals to the market that the transaction’s structure, governance, risk and impact thesis have been rigorously assessed and that the model is credible.

The second was unlocking investment. FSDAi’s commitment alongside the IFC provided the foundation that drew in institutional investors including mainstream local asset managers and pension funds, proving the credibility and investability of the bond.

Africa is home to some of the world’s most important natural assets, yet it attracts only a small share of global finance for nature, while holding over two trillion dollars of local institutional capital seeking long‑term investment opportunities. Instruments like this demonstrate the value of partnership with market innovators to close that gap—offering institutional investors exposure to differentiated sources of return that can complement traditional credit risk. Our ambition is to deepen these partnerships to help channel domestic capital at scale, strengthen Africa’s capital markets, and finance the continent’s climate‑resilient future.

Nes Ruwo, Investment Principal, Private Capital Mobilisation at FSDAi.

The third purpose was replicability. The Cape Water Performance-Based Bond is not designed as a one-off but as a rigorous, transparent, scalable model for mobilising private capital into nature-positive outcomes – it created a template for future issuances. Each successive issuance will require less catalytic capital and attract greater commercial participation as the asset class matures and its track record strengthens.

 

What this opens ups

The projected impact is substantial: removal of IAPs could increase water availability by up to 55 million litres annually, create 1,500 jobs, restore biodiversity in key sub-catchment areas, and improve water access – reclaimed water could support approximately 800,000 people each year based on average household consumption. In addition, this nature-based solution is the most cost-effective option at approximately 8% of the cost to develop desalination infrastructure that would provide comparable quantities of water.

Nature has long been treated as a cost; this bond demonstrates it can be structured as an asset. What makes the Cape Water Bond significant is not just what it finances, but who it brings together — and FSDAi is proud to stand alongside partners united by the conviction that Africa’s markets are ready to price nature differently. That collective commitment turns reclaimed water into a verifiable, investable outcome and opens the door to an entirely new asset class in Africa’s capital markets.

Anne-Marie Chidzero, Chief Investment Officer at FSDAi

By embedding measurable environmental outcomes into a mainstream market instrument, the Cape Water Performance-Based Bond shows that Africa’s capital markets are capable of absorbing and scaling this kind of innovation.

The value of this bond lies not only in the water it will reclaim or the jobs it will create, but also in the template it leaves behind for conservation finance that can travel across geographies, ecosystems, and development challenges across the continent.

That is the investment FSDAi made. And that is why it was worth making.

 

 

Why FSDAi invested: summary

FSDAi invested in the Cape Water Performance-Based Bond to correct a clear market failure that has kept large-scale conservation locked out of mainstream finance, despite its measurable economic and social value. By anchoring Africa’s first nature-linked, outcomes-based bond, FSDAi validated a highly innovative structure that embeds verified ecological outcomes into a listed, senior unsecured instrument, giving institutional investors a credible way to deploy capital into nature. Our catalytic investment helped de-risk a first-of-its-kind transaction, unlock participation from local pension funds and asset managers, and lay the foundation for a new asset class that treats nature as a productive, investable asset rather than a philanthropic cause.

 

 

About this series

Behind the Investment is FSDAi’s series on the decisions, structures, and signals behind our capital. Each post takes a single investment and unpacks the market gap it addresses, the thesis we underwrote, the risks we accepted, and the change we expect it to catalyse across Africa’s financial markets.

Contact: Joyce Waihiga, Manager, FSD Africa Investments (FSDAi).

 

FSD Africa supports Insurance and Pensions Commission of Zimbamwe launch a Regulatory Sandbox

Posted on by Riitho

15 May 2026 – The Insurance and Pensions Commission (IPEC) has officially launched its Regulatory Sandbox and opened the Cohort Two Application Window as part of efforts to promote innovation, financial inclusion and technology-driven transformation in Zimbabwe’s insurance and pensions industry. The Cohort Two application window opened on 13 May 2026 and will close on 30 June 2026.

FSD Africa and Cenfri provided technical assistance to IPEC in developing the Regulatory Sandbox and capacity building for IPEC and the insurance and pensions industry.

The IPEC Regulatory Sandbox provides a controlled and supervised environment where innovators can safely test new insurance and pensions products, services, technologies and business models before full-scale deployment into the market, if they pass the test.

The initiative is designed to support local and foreign innovators, InsurTechs, FinTechs, startups, universities, innovation hubs and regulated entities seeking to develop solutions that improve access, efficiency and consumer experience within the insurance and pensions ecosystem in Zimbabwe.

IPEC Commissioner, Dr Grace Muradzikwa said the Regulatory Sandbox represents a significant milestone in the modernisation of Zimbabwe’s insurance and pensions industry. She added that the sandbox would help foster collaboration between IPEC and innovators while ensuring that consumer protection remains central.

 

“The official launch of the IPEC Regulatory Sandbox reflects the Commission’s commitment to creating an enabling environment for responsible innovation in the insurance and pensions sector.

Innovation is critical in addressing market gaps, deepening financial inclusion and improving customer experience, particularly among underserved communities”

Dr Muradzikwa said.

 

“Regulatory sandboxes are increasingly becoming important tools for enabling responsible innovation across Africa’s financial services ecosystem. FSD Africa is proud to have walked this journey with IPEC in developing and operationalising the Regulatory Sandbox, which we believe, will help deepen financial inclusion in Zimbabwe.’

Elias Omondi, Principal, Sustainable Insurance at FSD Africa said.

 

“Innovation thrives where regulators and innovators engage constructively. The IPEC Regulatory Sandbox has the potential to unlock new insurance and pensions solutions that can improve inclusion, affordability and resilience for consumers in Zimbabwe.”

Ms Nichola Beyers, Cenfri Engagement Manager,  added.

 

Applications are invited from both local and international individuals and entities proposing innovative products, services, technologies or business models that fall outside the current regulatory framework.

Completed applications must be submitted through the Regulatory Sandbox Portal available on the IPEC website: www.ipec.co.zw

 

 

About IPEC

IPEC is a statutory body that was established in terms of the Insurance and Pensions Commission Act [Chapter 24:21] with the mandate of regulating and developing the insurance and pensions industry in Zimbabwe.

 

About FSD Africa

FSD Africa is a specialist development agency that focuses on strengthening and developing financial markets across Africa. The organisation works with governments, regulators, policymakers, financial institutions and private sector players to mobilise capital, support policy and regulatory reform, strengthen financial infrastructure and promote innovation, financial inclusion and sustainable finance.

 

About Cenfri

Cenfri is an independent African economic impact agency and not-for-profit development consultancy working to boost economic growth and sustainable development in emerging markets. Cenfri partners with regulators, policymakers, development institutions and private sector stakeholders to support inclusive financial sector development, digital transformation and evidence-based policymaking.

Regional carbon market roundtable highlights growing focus on financing readiness

Posted on by Riitho

Representatives from donor agencies, development finance institutions, climate finance organisations, technical partners, and regional market initiatives during the Regional Donor Roundtable on Financing Readiness in Carbon Markets held in Nairobi on 7 May 2026. Photo FSD Africa.

 

Nairobi, Kenya – FSD Africa co-hosted a regional donor roundtable on financing readiness in African carbon markets in Nairobi on 7 May 2026, bringing together development partners, policymakers, technical organisations, and market actors to examine how stronger policy and regulatory environments can help unlock financing into African carbon markets.

Co-hosted with the Eastern Africa Carbon Alliance, the meeting brought together more than 30 senior representatives from donor agencies, climate finance organisations, and market ecosystem partners to discuss how the region can build more credible, coordinated, and investable carbon market ecosystems.

The discussions took place against a backdrop of shrinking development budgets and growing demand for support around carbon market regulation, institutional readiness, and implementation capacity. Participants agreed that stronger coordination across institutions will be essential if the region is to build functioning carbon markets capable of attracting long-term private investment.

The workshop included representatives from the World Bank, African Development Bank, United Nations Environment Programme, United Nations Development Programme, GIZ, European Union, JICA, and FCDO, alongside conservation organisations, technical assistance providers, and regional market initiatives.

 

Building more coordinated and investable carbon markets

Discussions focused on where financing and implementation gaps remain across the region, where support efforts overlap, and how institutions can work together more strategically to reduce duplication and strengthen regional impact. Participants also explored how support in one country or initiative could potentially be leveraged into others through stronger partnerships and coordinated approaches.

A strong theme throughout the discussions was the need for deeper collaboration across the ecosystem to improve efficiency, reduce duplication, and strengthen the overall impact of support being provided across the region.

Stakeholders also expressed strong interest in exploring a more structured platform that could improve visibility across country readiness efforts, ongoing interventions, partnership opportunities, and outstanding financing gaps. Participants noted that clearer coordination and transparency could help strengthen investor confidence while improving how support is deployed across the market ecosystem.

Reshma Shah said the discussions reinforced growing recognition that policy and regulatory stability are no longer secondary considerations in carbon markets, but central determinants of whether markets succeed in attracting investment.

Across our engagements with financial institutions, there is clear interest from banks, insurers, pension funds, and investors…But carbon markets continue to be perceived as high risk, with policy and regulatory uncertainty remaining one of the main drivers of that risk perception

She added that carbon markets represent a potentially important mechanism for mobilising climate finance across the region, but that stronger institutional coordination and clearer market signals will be needed if countries are to move from fragmented pilot activity toward functioning and investable markets.

 

A changing funding landscape

Reflecting on the discussions, Mark Napier noted that tightening aid budgets are forcing organisations to think more carefully about where catalytic support can have the greatest impact.

This is a good illustration of how shrinking aid budgets are forcing everyone to focus on the most salient issues

he said following the roundtable discussions.

Napier also reflected on the importance of understanding where meaningful capital and ecosystem support is emerging across the sector, particularly as countries seek to build enough scale and coordination to make carbon markets viable over the long term. He pointed to the potential for countries such as Ethiopia to emerge as important testing grounds for carbon market development where sustained commitments, ecosystem coordination, and market activity begin to reach critical mass.

 

Strengthening the enabling environment for investment

For FSD Africa, the convening reinforced the role the organisation can play in helping connect policy readiness and market infrastructure directly to capital mobilisation outcomes. Rather than focusing on detailed policy implementation work, the organisation’s role is to help build the enabling conditions that improve investor confidence and connect policy, projects, and financial markets into clearer investment pathways.

The group agreed to reconvene virtually in the coming weeks to review consolidated workshop outputs and identify priority areas for collaboration going forward.

FSD Africa engages Zambia’s early-stage finance ecosystem at InvestFest Zambia

Posted on by Riitho

The FSD Africa team at InvestFest Zambia. From left: Juliet Munro, Director of Early-Stage Finance, Rodney Carew from FSD Africa Investments (FSDAi), Kevin Simmons, and Mary Kashangaki. Photo FSD Africa

 

Lusaka, Zambia – InvestFest Zambia, convened by Impact Capital Africa to bring together investors, entrepreneurs, fund managers, and ecosystem enablers supporting Zambia’s investment ecosystem, took place in the capital city of Lusaka from 5–6 May 2026.

FSD Africa’s Early-Stage Finance team participated in the two-day conference alongside a three-day investor roadshow hosted by British International Investment (BII) and Impact Capital Africa. The engagements provided an opportunity to better understand the opportunities and constraints shaping Zambia’s early-stage finance ecosystem, while exploring how FSD Africa could support the growth of local investment ecosystems and capital providers.

Throughout the week, the team engaged with a range of ecosystem actors, including local fund managers, investors, entrepreneurs, legal experts, regulators, angel networks, and government representatives. Discussions focused on the practical challenges affecting local capital mobilisation, fund formation, and financing for small and growing businesses in Zambia.

 

Exploring what local fund ecosystems need to grow

FSD Africa and XSML, an investment firm focused on financing small and medium-sized businesses in frontier markets, co-facilitated a roundtable discussion on what is needed to support the growth and sustainability of local fund managers in Zambia.

Participants highlighted challenges including limited local institutional participation, low allocator familiarity with private capital, gaps in ecosystem coordination, and the difficulty first-time fund managers face in attracting anchor investors.

The discussions also pointed to growing interest in building stronger market infrastructure to support local private capital ecosystems, including fund manager incubation, investor education, local currency capital mobilisation, and stronger coordination between ecosystem actors.

Alongside the roundtable, FSD Africa co-hosted a practical bootcamp with Investisseurs & Partenaires (I&P) focused on “how to become a fund manager in Zambia.” The session explored the realities of fundraising, governance, deployment discipline, and building durable investment institutions in emerging markets.

The bootcamp generated strong interest from local participants and reinforced demand for more practical support for emerging fund managers.

 

A long-term approach to ecosystem building

During the conference, Juliet Munro delivered a pitch-style presentation highlighting FSD Africa’s approach to early-stage finance and inviting ecosystem partners to collaborate in strengthening Zambia’s investment ecosystem.

“We are interested in investing in first-time capital providers and helping build that market of first-time managers into an investable asset class,” she said. “But it’s not only about capital. We also provide non-financial support, research, market data, and ecosystem-building support because we take a systemic approach.”

The team also participated in investor engagements focused on Zambia’s wider economic and financing landscape, including a breakfast meeting held in Lusaka in May 2026 with Jito Kayumba, Special Assistant to the President for Finance and Investments.

Discussions highlighted Zambia’s long-term economic ambitions and the importance of building stronger financial systems, domestic capital mobilisation mechanisms, and investment infrastructure to support growth.

For FSD Africa, the week reinforced both the growing momentum within Zambia’s investment ecosystem and the need for locally rooted ecosystem-building approaches that help more capital reach small and growing businesses.

The conference and associated roadshow reinforced the importance of locally rooted ecosystem engagement…It provided a strong foundation for continued collaboration and exploration in Zambia’s early-stage finance market.

said Mary Kashangaki.

 

Several opportunities also emerged from the engagements, including potential pipeline opportunities for FSD Africa’s Manager Finance Facility, support for emerging fund managers, strengthening angel investor networks, and further collaboration around ecosystem development and investment readiness.