Category: News

Pan African Fund Managers Association (PAFMA) Welcomes New Members in Ongoing Drive to Bolster Climate Finance in Africa

Posted on by Kihingu Inc

Nairobi, 30th May 2024 – The Pan African Fund Managers Association (PAFMA), an esteemed trade association dedicated to enhancing climate finance across the African continent, proudly announces the addition of new members to its esteemed roster. Since its landmark introduction at the Africa Climate Summit in 2023, PAFMA has rapidly grown, now boasting nine members representing 16 African countries and 231 fund managers, collectively overseeing assets under management (AUM) exceeding US$120 billion.

The new members are the Association of Moroccan Companies and Investment Funds (ASFIM), the Namibia Savings and Investment Association (NaSIA), the Association of Investment Managers of Zimbabwe (AIMZ) and the Association des Societes de Gestion et de Patrimoine (ASGOP) de l’UEMOA.

Africa stands at a critical juncture, facing monumental financing gaps to achieve its Sustainable Development Goals (SDGs) by 2030. With a staggering requirement of US$1.2 trillion, alongside an annual climate financing need nearing USD 300 billion, the imperative for mobilising significant capital for development priorities has never been more pressing.

PAFMA emerges as a beacon of hope in this landscape, spearheading efforts to bridge the chasm in climate finance through private sector initiatives. Central to its mission is the promotion of alternative investments, with a strategic emphasis on green finance, heralded as a catalyst for propelling diverse sectors of the economy forward. By championing these alternative avenues, PAFMA envisages stimulating job creation and bolstering income generation across the continent.

In its endeavor to realise these ambitions, PAFMA is committed to pioneering localised research initiatives and fostering a knowledge-sharing culture and capacity-building among fund managers. This initiative aims to empower fund managers to assess and engage in investment opportunities within regions and countries where their presence was previously limited.

Furthermore, PAFMA assumes the mantle of a proactive advocate, offering invaluable policy insights and championing the interests of its members in both regional and international forums. The association fosters a conducive environment for collaboration and networking among fund managers from diverse African landscapes, facilitating the exchange of ideas and best practices.

Simultaneously, as Africa witnesses a surge in domestic institutional capital, estimated between USD 1-1.4 trillion, PAFMA recognises the untapped potential of harnessing local institutional capital to bolster the continent’s development agenda. Unlocking this reservoir of private sector finance will complement constrained public finance, amplifying local currency financing and fortifying Africa’s journey towards sustainable development.

First East African sustainability bond lists on the London Stock Exchange

Posted on by Kihingu Inc

Original article by the impact investor

The NMB Jamii Bond, Tanzanian NMB Bank’s inaugural sustainability bond, has cross-listed on the London Stock Exchange to drive institutional capital into the country’s climate finance and development projects.

NMB Bank, a commercial bank in Tanzania, has announced the cross listing of its inaugural sustainability bond, the NMB Jamii Bond, on the London Stock Exchange.

The NMB Jamii Bond launched in both Tanzanian shillings and US dollars on the Dar es Salaam Stock Exchange in December last year, with anchor investments from development finance institutions British International Investment (BII) and the International Finance Corporation (IFC). It aims to increase investment into Tanzanian climate finance and development projects.

The dual-tranche bond raised a total of TZS 400bn (€142m) from both local and international investors in its initial offering, but it is the US dollar tranche that listed on the London stock market.

Ruth Zaipuna, chief executive of NMB, said: “Today’s listing of the Jamii Bond cements NMB Bank’s position as a trailblazer in sustainability within the African capital markets, and we are humbled that our commitment to ESG principles has garnered national and international recognition.

“This extraordinary success highlights the strong confidence Tanzanian and global investors have in NMB Bank’s soundness and commitment to sustainability across operations, business, community, and environment. It reaffirms our creditworthiness and reflects the desire of investors, both local and international, to seize the safe and impactful investment opportunities within Tanzania’s robust investment climate.”

BII, which as anchor investor committed €13.8m equivalent in Tanzanian shilling to the bond, confirmed it had no immediate plans to invest in the dollar tranche through the LSE.

Technical assistance

FSD Africa, a specialist development agency dedicated to mobilising sustainable financing for projects on the African continent, provided technical assistance for NMB Bank’s portfolio review, which was assessed by the not-for-profit organisation Climate Bonds Initiative (CBI), to ensure the bond’s alignment with various international organisations and their requirements and taxonomies.

Responding to questions from Impact Investor, Mark Napier, chief executive of FSD Africa, explained that the portfolio review was critical to identifying existing and pipeline green projects that an issuer could fund.

“A portfolio review assesses the nature of the projects to ensure that they align with the eligibility criteria for green projects.  It also enables an issuer to identify the funds required to meet the financing need for this portfolio,” he said.

FSD Africa also offered technical assistance towards securing Second Party Opinion (SPO) for NMB Bank’s sustainable finance framework, a document which explains to investors which eligible projects will be funded, how these projects are selected, how often impact will be reported and how the funds raised will be managed.

“A second party opinion is a required step under the International Capital Market Association  (ICMA) sustainability bond principles that assesses the bond framework. Investors rely on this second party opinion, undertaken by a third party, to make an informed decision as to whether to invest in a sustainable bond or not,” Napier explained.

Meeting Africa’s climate goals

Earlier this year, a UN economist predicted Africa would be $2.5trn short of the finance it needs to cope with climate change by 2030 despite, as a continent, contributing the least to greenhouse gas emissions.

Another estimate puts Africa’s climate finance needs at $277bn (€255bn) annually in order to meet its Nationally Determined Contributions, the climate action plans which detail countries’ commitments to achieving the global targets of the Paris Agreement.

The NMB listing is expected to contribute to plugging this gap, but private sector financing still has a long way to go with the 2022 Landscape of Climate Finance in Africa report, commissioned by FSD Africa and others,  revealing that it represented only 14% of all of Africa’s climate finance from 2019 to 2020, much lower than in other regions like South Asia (37%), East Asia and Pacific (39%), and Latin America & Caribbean (49%).

Napier said that during the period the report was undertaken, a key finding was that actual risk, perceived risk, and ticket sizes dissuaded private capital players, and that recommendations were made to address this.

“For instance, development partners could target higher leverage ratios through blended financing structures, with a particular focus on an enhanced role for private insurance and partial guarantees. They could also support capacity building both within domestic finance institutions and in developing a pipeline of investable opportunities.”

Information exchange platforms

He added that information exchange platforms and financial alliances such as the Glasgow Financial Alliance for Net Zero (GFANZ), a group of financial institutions formed during the COP26 climate conference in Glasgow, also had a role to play.

“Information exchange platforms could make existing transactions more visible to investors. International networks like GFANZ could support pipeline development and back transaction accelerators. They could also engage actively with domestic institutions to source and bundle viable, well-diligenced transactions,” he added.

The successful issuance of the dual-tranche Jamii Bonds on the Dar es Salaam Stock Exchange last year was said to highlight the growing capacity of local investors to meet the rising demand for climate and sustainability financing.

 

UWASA Tanga issues 53bn/- DSE listed water green bond

Posted on by TIMOTHYRADIER

The first ever sub-national water infrastructure green bond in East Africa, valued at 53.12bn/- has been issued by Tanga Urban Water Supply and Sanitation Authority (Tanga UWASA), an autonomous water utility.

The transaction is expected to finance expansion and improvement of the water supply infrastructure and environmental conservation within Tanga city and nearby townships.

The 10 year project revenue bond is to be listed at the Dar es Salaam Stock Exchange (DSE), offering an attractive interest rate of 13.5 percent per annum to be paid semi-annually.

Key stakeholders involved in preparing the water green bond includes NBC Bank as the lead transaction advisor, FSD Africa a UK-backed Africa green financing framework, FIMCO (a financial investment management company that offers professional assistance to clients looking to navigate local financial markets) and Global Sovereign Advisory (GSA), a Rockefeller Foundation linked firm advising governments on strategic, economic and financial issues which took the role of financial and investment advisory, ALN (T) a commercial law firm that acted as legal advisor, Innovex (reporting accountant), Vertex International Securities (stockbroker) and ISS Corporate Solutions (second-party opinion provider).

Water minister Jumaa Aweso said at the event that the general public, investors, institutions and individuals are welcome to visit any NBC Bank branch or authorized brokers to invest in the scheme within the offer period of six weeks.

A key stakeholder, FSD Africa in the past two years obtained a £90m commitment from the British government to initiate a new phase of financial sector development.

It said at the time that the £90m commitment from UK Aid, part of a £320m package, would help initiate an ambitious new phase of financial sector development across the African continent.

The UK Aid package includes funding for eight existing local financial sector development programmes and to set up and scale new FSDs in high-priority markets.

There is also the African Guarantee Fund (AGF), a leader in promoting financing of small and medium-sized enterprises (SMEs) across Africa and FSD Africa, a pioneering development agency committed to reshaping Africa’s long-term financial landscape.

The two signed a strategic cooperation agreement aimed at propelling the growth of Green SMEs by providing critical financial support, technical assistance, and capacity building.

The government adopted the Alternative Project Financing (APF) strategy in 2021 owing to the need to broaden its domestic revenue base to finance various development initiatives including water, energy, healthcare, agriculture, and other productive infrastructure projects.

Vice President Dr Philip Mpango praised the financing of strategic revenue generating projects through a revenue bond such as the Tanga Bond, noting that it will reduce pressure on the government budget and provide an opportunity to focus on priority social initiatives that can’t be financed via commercial windows.

He said that it was vital for the Treasury Registrar to oversee public institutions, including those serving regions, municipalities or cities to explore ways to tap long term finance via corporate revenue or municipal bond issuance.

Hamad Chande, the Finance deputy minister, noted that the bond issuance was part of the government’s Alternative Project Financing strategy which needs to be used by more public entities to finance local development projects.

They should not rely on government grants, in the same manner as the private sector and corporate entities operating in the same market.

Mark Napier, the FSD Africa CEO said the successful launch of the Tanga UWASA Water Green Bond is testimony to the power of innovative financing in driving sustainable development in East Africa.

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Landmark $20.8m Sub-national Water Infrastructure Green Bond Issued in EA

Posted on by TIMOTHYRADIER
  • This project is expected to improve and increase water supply from 96 per cent to 100 per cent in Tanga City.
  • The government of Tanzania adopted the Alternative Project Financing (APF) strategy in 2021
  • Mark Napier, CEO of FSD Africa, commended the collaborative effort behind the Tanga UWASA Green Bond.

The first ever Sub-national Water Infrastructure Green Bond in East Africa, worth $20.8 million, has been issued by Tanga Urban Water Supply and Sanitation Authority (Tanga UWASA), an autonomous water utility.

This landmark transaction would fund the expansion and improvement of sustainable water supply infrastructure and environmental conservation within Tanga City and nearby townships. The 10-year project revenue bond listed at the Dar es Salaam Stock Exchange (DSE) offers an attractive interest rate of 13.5 per cent per annum to be paid semiannually.

The government of Tanzania adopted the Alternative Project Financing (APF) strategy in 2021 because of the need to broaden its domestic revenue base to finance various national development initiatives, including water, energy, health care, agriculture, and other productive infrastructure projects.

The Tanga bond is the first significant transaction demonstrating that municipalities, cities, and sub-national entities can use the existing regulations and frameworks to raise substantial capital from domestic capital markets in local currency to finance development.

Jumaa Aweso, the Minister for Water, emphasized the government’s mandate to improve water accessibility, particularly in urban and rural areas. He stressed the importance of deploying innovative financing mechanisms, similar to the Tanga UWASA initiative, to achieve ambitious water supply targets by December 2025.

” This project is expected to improve and increase water supply from 96 per cent to 100 per cent in Tanga City and reliability of water for 24 hours, by June 2025. Similarly, increase water supply network from 70Per cent to more than 95Per cent in the townships of Muheza and Pangani respectively by June 2025,” said Aweso.

Government officials, including Philip Mpango, Vice President of the United Republic of Tanzania, emphasized the importance of strategic revenue-generating projects like the Tanga Bond in alleviating pressure on the government budget. They underscored the significance of redirecting resources towards priority social initiatives that cannot be adequately financed through commercial means alone.

“Am directing the Treasury Registrar’s Office which supervises public institutions and the Minister of State, President Office, Regional Administration and Local Government (PORALG), to explore eligible public institutions, Local Governments, cities and municipalities to prepare to tap long term finance via revenue and municipal bond issuance,” said Mpango.

Mark Napier, CEO of FSD Africa, commended the collaborative effort behind the Tanga UWASA Green Bond, emphasizing its role in driving sustainable development across East Africa. Napier highlighted the transformative impact of strategic partnerships in reshaping the region’s financial landscape and fostering inclusive growth.

First Water Infrastructure Green Bond

“We are excited to witness the successful launch of the Tanga UWASA Water Green Bond, a testament to the power of innovative financing in driving sustainable development in East Africa. This milestone achievement not only underscores FSD Africa’s commitment to making finance work for Africa but also highlights the immense potential of collaborative efforts in transforming the region’s financial landscape,” said Napier.

“The Tanga UWASA Green Bond represents a significant step towards inclusive growth, and we are proud to have played a role in facilitating this historic initiative. It reinforces our belief in the transformative impact of strategic partnerships and underscores our unwavering commitment to driving positive change for communities across the continent,” he added.

Deputy Minister of Finance, Hon. Hamad Chande, highlighted that the Government of Tanzania is committed to ensuring that more public entities use its Alternative Project Financing strategy to finance local development instead of relying only on government grants, a leaf to be borrowed from the Private Sector and Corporates who operates in the same market.

Other stakeholders involved in preparations of the Tanga water green bond include NBC Bank (lead transaction advisor), FSD Africa (supported green framework), FIMCO and Global Sovereign Advisory (financial & investment advisory), ALN Tanzania (legal advisor), Innovex (reporting accountant), Vertex International Securities (stockbroker) and ISS Corporate Solutions (second-party opinion provider).

The general public, investors, Institutions, and individuals are welcome to visit any NBC Bank branches or any other authorized brokers to invest in the Tanga water green bond within the offer period of 6 weeks.

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African Guarantee Fund partners FSD Africa to boost Green SME Financing

Posted on by TIMOTHYRADIER

The African Guarantee Fund (AGF), a leader in promoting financing of Small and Medium-sized Enterprises (SMEs) across Africa and FSD Africa, a pioneering development agency committed to reshaping Africa’s long-term financial landscape, have today signed a strategic Cooperation Agreement aimed at propelling the growth of Green SMEs by providing critical financial support, technical assistance, and capacity building.

The Cooperation Agreement outlines a detailed framework collaboration between the organizations in boosting sustainable development in Africa. The main aspects of this partnership involve assisting in the development of financial products for institutions, offering partial credit guarantees for bonds and funds raised on behalf of SMEs, and conducting capacity-building events.

Furthermore, by providing financial support and fostering business growth, Green SMEs are expected to play a pivotal role in reducing CO2 emissions. This active contribution aligns with the overarching goal of preserving the environment and facilitates access to finance for business growth and empowering SMEs to generate and sustain employment opportunities, especially for youth and women.

Speaking during the agreement signing, Mark Napier, Chief Executive Officer of FSD Africa said: “This partnership represents an important milestone in our efforts to foster sustainable economic development in Africa. By leveraging the strengths of FSD Africa and the African Guarantee Fund, we will actively create a robust ecosystem that empowers Green SMEs. This collaborative effort aims at facilitating access to affordable long-term funds, thereby accelerating the transition towards a greener and more resilient economy.”

Jules Ngankam, AGF Group Chief Executive Officer said: “Fostering a green economic transformation in Africa is one of our key priorities. Through this partnership, AGF will provide financial institutions with bank fundraising guarantees to enable them access affordable funds aimed at facilitating loans to SMEs investing in low carbon and climate resilient businesses”.

Additionally, AGF will extend partial credit guarantees to lenders in a bid to enhance credit accessibility for Green SMEs, empowering them to flourish and make meaningful contributions to environmental conservation.

The two organisations will also provide technical assistance on green financing initiatives, which is critical in building the capacity of key stakeholders such as Governments, Financial Institutions, and Green SMEs.

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Catalyst Fund invests $1.8 million in nine African climate startups

Posted on by TIMOTHYRADIER

Catalyst Fund, a pre-seed VC and accelerator, backs nine African early-stage climate tech startups with a $1.8 million investment to bolster their impact and growth trajectory.

The nine startups benefiting from the investment include Mazao Hub and Medikea from Tanzania, Earthbond, Zebra Cropbank, and Scrapays from Nigeria, Keep It Cool from Kenya, NoorNation from Egypt, Thola from South Africa, and Tolbi from Senegal.

In September 2023, Catalyst Fund achieved its first close, securing $8.6 million out of its $40 million target for investments in African climate startups. Notable investors include FSD Africa, FSDAi, Cisco Foundation, USAID Prosper Africa, and Andrew Bredenkamp.

The Catalyst Fund, established in 2016 and overseen by BFA Global, supports startups in accessing capital, talent, and market opportunities. This marks the fund’s second round of investments in African startups addressing climate change challenges.

In January 2023, Catalyst Fund allocated $2 million to ten startups focused on developing solutions for Africa’s climate-vulnerable communities.

As a result, this latest investment broadens Catalyst Fund’s portfolio to encompass 19 companies operating in eight diverse markets: Kenya, Egypt, Morocco, Nigeria, Senegal, South Africa, Tanzania, and Uganda. The Catalyst Fund team will offer comprehensive venture building support to these startups, effectively integrating them as extensions of their own teams.

These startups are actively addressing climate-related challenges within various sectors, including agriculture, healthcare, energy access, and waste management.

In 2023, a survey revealed that over 110 million Africans faced direct consequences from weather, climate, and water-related hazards in 2022, resulting in economic damages surpassing $8.5 billion.

In discussing the investment, Maelis Carraro, Managing Partner at Catalyst Fund, highlighted that the models utilized by the startups “empower farmers, healthcare providers, waste workers, and small and medium businesses to effectively adapt to the impacts of climate change, thus fostering economic growth with a positive climate impact.

Additionally, Maxime Bayen, Operating Partner at Catalyst Fund, emphasized that “with these latest investments, [Catalyst Fund] is committed to further diversifying its portfolio across various models, climate adaptation sectors, and geographic regions.

In 2022, Catalyst Fund secured a $3.5 million investment from FSD Africa to enhance its footprint and scalability across Africa. With this funding, its objective is to bolster 40 pre-seed impact ventures focused on developing solutions for marginalized climate-vulnerable communities in Africa, while also offering comprehensive venture-building assistance.

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Develop innovative solutions to help address challenges hampering insurance services delivery

Posted on by TIMOTHYRADIER

Insurance Technology companies must develop innovative solutions to help address the challenges hampering insurance services delivery to expand insurance penetration and coverage, Acting Commissioner of Insurance, Mr Michael K. Andoh has stated.

According to him, the difficulty in acquiring Police and Doctor’s report to claim insurance, accessing some remote parts of the country, affected insurance services delivery.

Mr Andoh who stated this in an interview after the opening of a one-day forum on the new Insurance Act ad Innovations in the sector in Accra on Tuesday said the aforementioned challenges if addressed would help prompt claim payment and cost of insurance.

It was on the theme “The New Insurance Act:  Unlocking the Insurance Industry Potential via Innovative Technology.”

It was organised by the National Insurance Commission (NIC) in partnership with Financial Sector Deepening Africa and Myfig.

He said the deployment of technology could reduce the cost of accessing insurance and expanding insurance penetration and coverage.

Mr Andoh said the technology could be a lever to reach a lot of the citizens with insurance.

According to him insurance through digital technology could be sold to people where insurance companies could not go.

He said the objective of the forum was to expose the insurance technology companies to the operations and solutions which would be be needed to boost the industry.

Mr Andoh said the NIC had introduced a sandbox to help insurance technology companies to text their ideas.

Under the sandbox, the NIC had offered two temporal license such as Insurers Innovative License for a period of two years to help insurance technology companies to test their insurance technology products.

The Head of Financial Market and Innovation Unit of the Ministry of Finance, Benjamin Torsah-Klu commended NIC for organising the forum, saying the  Ministry of Finance saw the forum as cutting-edge, as it intends to create a platform for the industry to leverage technology and innovation across the insurance ecosystem for the transformation of the market.

“Government would continue to provide the enabling environment for digitalisation and innovation in order to reduce financial vulnerability. Income inequality and the huge risk protection gap,” he stated.

Mr Torsah-Klu said that the Ministry.of Finance saw the forum as a pragmatic step by the NIC to enhance insurance market development, through innovation and technology.

That, he said, would help accelerate growth and deepen insurance access and penetration, and most importantly, improve livelihood and financial stability of the country.

The Principal in charge of Innovation and Resilience of FSD Africa,  Elias Omondi, said the objective of the FSD Africa was to deepen insurance penetration  in in Africa particularly Ghana. “Our role is how to create the large-scale change within the financial market in Africa and Ghana holds a special dispensation in insurance in Africa,” he stated.

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Ethiopian Securities Exchange Attracts Foreign Investors

Posted on by TIMOTHYRADIER

Ethiopian Securities Exchange (ESX) is attracting both domestic and foreign investors in line with its capital-raising objectives. Siinqee Bank recently became the second equity acquirer after Zemen Bank, with other investors also showing interest.

ESX, established as a share company by the government and private sector, aims to limit government ownership to twenty-five percent but may increase it if private sector interest is insufficient. Key players such as Ethiopian Shipping and Logistics, Ethio Telecom, and others have committed as initial investors. ESX has actively engaged in roadshows and aims to launch the secondary market by year-end. Foreign investors, including FSD Africa, are also involved. Individual investors are welcome, with minimum investment set at Birr 10 million. ESX forecasts substantial revenue growth, aiming to turn a profit by 2028. Anticipated members include financial institutions, brokers, and investors, with EIH overseeing major public firms, including Ethiopian Airlines Group and Commercial Bank of Ethiopia.

Zemen Bank became the first private entity to secure an agreement with ESX by investing Birr 47.5 million to acquire a 5% ownership share. This fulfills the minimum requirement set by ESX for investors as of January 11, 2024. The move is part of ESX’s goal to raise a total of Birr 625 million, with recent support from state-owned enterprises and FSD Africa. More banks and private investors in Ethiopia are expected to follow suit in the coming months.

Foreign and domestic investors can purchase 75% of the shares of ESX while the rest of the ownership goes to the Ethiopian Government through Ethiopian Investment Holdings.

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Gender Bonds Toolkit Unveiled In Nairobi To Centralize Capital For Women

Posted on by TIMOTHYRADIER

NAIROBI, Kenya, Feb 19 – A new gender bonds toolkit has been introduced in Nairobi to centralize capital for women in the African capital markets.

FSD Network’s gender collaborative program, British International Investment (BII), and the United Nations Entity for Gender Equality and the Empowerment of Women (UN Women) are the proponents of the program.

The toolkit seeks to equip stakeholders with the necessary insights and strategies to foster inclusive and impactful investments, bridging gender gaps in the investment landscape.

Generally, gender-focused bond issuances have been viewed as complex due to the lack of a ‘go to’ reference on the process and procedure.

However, the toolkit will champion the centralization of efforts to mobilize gender smart capital, strategically addressing technical capacity gaps on both the demand and supply sides.

“With the launch of the gender bonds toolkit, FSD Africa together with our partners are catalysing a seismic shift in African capital markets,” Mark Napier, Chief Executive Officer of FSD Africa, said during the launch.

“This initiative not only signifies our commitment to gender equality but serves as a powerful tool to mobilize capital, foster sustainable growth, and empower women across the continent,’’ Napier added.

According to a report by UN Women and UNDP in 2022, sustainable bonds aligned with SDG 5, achieving gender equality and empowering all women and girls, were still 1 percent of the $900 billion issued through green, social, sustainability, and sustainability-linked bonds.

The financing gap was even more evident when gender finance was considered as a proportion of total global assets under management (AUM), making up not even 0.01 percent.

However, as of June 2023, global Assets Under Management for Use of Proceeds bonds dedicated to gender equality and women’s empowerment reached $13.5 billion, underscoring the increasing significance of gender-focused investments.

“As a founding member of the 2X Challenge and a leader in providing gender finance, BII is committed to empowering women’s economic development,” Jo Fry, Investment Director, and Head of Intermediated Financial Services at BII, said.

“This means that we’re constantly looking for new ways in which we can mobilise more capital and better support women,” Fry stated.

“Our goal in producing this guide is to demonstrate and create better understanding of how effective gender impact bonds can be as an investment tool to advance gender equality in Africa.”

Parallelle Finance, an investment research and consulting firm, served as the author of the toolkit.

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Catalyst Fund has backed 6 African climate-tech startups in last 4 months

Posted on by TIMOTHYRADIER

Pre-seed venture capital (VC) fund and accelerator Catalyst Fund has made investments in six African climate-tech startups in the last four months, having announced a first close of its US$40 million fund in September.

Catalyst Fund is a pre-seed VC fund and accelerator backing high-impact tech startups that seek to improve the resilience of underserved, climate-vulnerable communities. It partners with mission-driven founders that share our vision of a world where every individual has the tools and opportunities they need to thrive.

Until a year ago, the organisation offered grant capital to selected startups, but in January 2023 it announced a US$2 million investment into 10 startups funded by a US$30 million fund anchored by financial sector development agency FSD Africa.

Focused on startups building solutions to improve the resilience of climate-vulnerable communities in Africa, Catalyst Fund in September of last year announced the successful first close of its targeted US$40 million fund, with over 20 per cent committed.

The fund, which offers US$100,000 of equity investments as well as US$100,000 of hands-on venture-building support, has since then announced six investments. In November, it announced investments in Tolbi, a pan-African climate-agtech startup using satellite imagery and AI to enable climate-smart agriculture practices on the continent with data; and NoorNation, an Egyptian startup providing decentralised solar energy and water solutions tailored for farming businesses and underserved communities.

In December, it backed South Africa’s Thola, which democratises access to certifications to liberate SMEs to catalyse climate resilience and food safety – transforming compliance from an obstacle into an opportunity.

Then, in January, it funded Nigeria’s Zebra CropBank, which provides climate-smart solutions tailored to overcome the interlinked challenges holding smallholder farmers back; and Nigeria’s Scrapays, a waste management startup that enables individuals and small businesses to launch mini-waste enterprises.

And just last week it announced an investment in Tanzania’s Medikea, which makes affordable preventative and primary care, diagnostics, and compliance support more accessible to overlooked Tanzanians, directly empowering vulnerable groups to safeguard their well-being in the face of growing threats.

Catalyst Fund’s climate-focused fund has garnered significant backing from investors including FSD Africa, FSDAi, Cisco Foundation, USAID Prosper Africa, and seasoned tech investor Andrew Bredenkamp.

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