Category: Press release

FSD Africa Launches $30 Million Inclusive Insurtech Fund to Close Africa’s Protection Gap

Posted on by Riitho

FSD Africa Announces $30million Venture Fund at BimaLab Africa Insurtech Summit 2025 To Accelerate Insurance Innovation Across the Continent

  • Africa faces major protection gap with around 80% of economic losses from natural disasters going uninsured in 2022, up from 58% in 2021.
  • The BimaLab Accelerator Programme has supported 135 startups across 28 African countries to date
  • New Regulatory Sandbox Eligibility Assessment Toolkit also launched at the Summit

Nairobi, Kenya, 26th November 2025: FSD Africa today announced a new $25 – 30 million Inclusive Insurtech Investment Fund (3iF), at the BimaLab Africa Insurtech Summit held on 26–27 November in Nairobi to open the way for more private investment in the insurance technology (insurtech) sector, accelerate insurance innovation and close the continent’s protection gap.

3iF is a pan-African venture capital fund targeting early-stage insurtech startups that expand insurance access, affordability, and awareness – particularly in climate resilience, health, and financial inclusion among underserved populations. Building on the BimaLab Accelerator Programme, which has supported over 135 startups in 28 countries to date, 3iF aims to bridge the financing gap that prevents promising tech-enabled solutions from scaling and addressing Africa’s substantial insurance protection gap.

Expected to launch in January 2026, the Fund’s blended structure combines junior equity from catalytic investors, anchored by FSD Africa Investments (FSDAi), FSD Africa’s investment arm, with senior equity from commercial and strategic investors led by Zep Re. 3iF will provide investment growth capital to successful graduates of BimaLab as well as other promising ventures, complementing the BimaLab ecosystem.

Speaking ahead of the BimaLab Africa Insurtech Summit, Kelvin Massingham, Director, Adaptation and Resilience, FSD Africa, commented: ““The launch of the 3i Fund opens an exciting new chapter for insurance innovation in Africa. By investing in the next generation of insurtech pioneers, we are unlocking opportunities to expand access, affordability, and resilience for millions across the continent. Our goal is to empower visionary startups to transform how insurance works for everyone—driving inclusive growth, climate resilience, and financial security for Africa’s future.”.

A new Regulatory Sandbox Eligibility Assessment Toolkit was also launched at the BimaLab Insurtech Accelerator Summit, a practical resource designed to help African insurance regulators to quantify the level of impact new insurtech innovations will have on their economies, supporting further investment, testing and development of impactful innovations within regulatory sandboxes.

The toolkit is designed to streamline how regulators evaluate emerging insurtech models, lower barriers for startups, and ultimately expand access to affordable risk protection, particularly for informal workers, rural communities, smallholder farmers, and low-income households.

Commenting on the new toolkit, Godfrey Kiptum, MBS, CEO and Commissioner, Insurance Regulatory Authority (IRA), Kenya, said:

“By strengthening the regulatory environment, we are laying the foundation for a more resilient and inclusive insurance ecosystem for Africa’s next decade. Building regulatory readiness for innovation is key, and BimaLab’s new toolkit will be an invaluable resource not only for us here in Kenya, but for African regulators across the continent.”

 

Driving Inclusive Insurance Across Africa

Africa faces a major protection gap, with insurance penetration below 3% in most countries. This leaves individuals, small businesses, and vulnerable communities exposed to risks they cannot recover from quickly. Around 80% of economic losses from natural disasters went uninsured in 2022, up from 58% in 2021.

Launched in Kenya in July 2020 by the IRA and FSD Africa, the BimaLab Accelerator Programme has become Africa’s leading insurance innovation platform. It aims to harness technology innovations that increase insurance penetration among low-income and underserved communities and is a key component of FSD Africa’s mission to build resilient, inclusive financial markets across the continent of Africa. BimaLab was created to foster innovation and accelerate the development of insurtech product development and distribution, helping startups to scale and develop market-ready solutions, and supporting regulatory engagement and inclusivity throughout the insurance sector.

Elias Omondi, Principal of Innovation for Resilience adds;

“Africa’s protection gap is not just a market failure, it’s a capacity and capital gap. BimaLab Africa Insurtech Accelerator combines focused technical support with catalytic funding, we enable insurtechs to de-risk innovation, scale inclusive products and reach the millions who remain unprotected.”

The 2-day BimaLab Africa Insurtech Summit 2025 held in Nairobi, brought together insurers, regulators, investors, innovators, tech partners, and development leaders driving the transformation of insurance across Africa, under the theme “Insuring Africa’s Future: Innovation, Inclusion and Investment”.

Ted Pantone, CEO and Co-founder of Turaco, a Kenyan micro-insurance company showcasing its innovative insurance products at the Summit, commented: “Our vision when we launched in 2019 was to insure 1 billion people across the continent, and already, with BimaLab’s ongoing support, we have successfully expanded to Uganda, Nigeria and Ghana, and are now insuring over 1 million customers and processing over 20,000 claims. We are proof that this programme really works.”

 

Notes to Editors

For more information, please contact:

Kaara Wainana, Senior Manager Advocacy, Campaigns & Partnerships, FSD Africa

Kaara@fsdafrica.org

 

About the BimaLab Insurtech Accelerator

BimaLab, backed by FSD Africa and the Swiss Re Foundation, is an innovation accelerator focused on strengthening Africa’s insurtech ecosystem. It supports early- to growth-stage startups through mentorship, technical assistance, partnerships, investor readiness, and regulatory engagement. Its core mission is to increase insurance penetration among underserved communities by fostering the development and scaling of inclusive, climate-resilient insurance products while integrating innovation into regulatory frameworks.

Since its launch in 2020, BimaLab has supported over 135 startups in 28 African countries, facilitating the creation of 150+ insurance solutions that now reach over 6 million African customers. The program has collaborated with 15 insurance regulatory authorities supporting the development of 7 insurance regulatory sandboxes.

BimaLab’s annual innovation summits and its alumni pipeline have further helped drive policy reform and attract global investment, positioning it as a leading force in insurance innovation across the continent.

Commentary: Beyond Mobile Money, Mobilising Africa’s $2.4tn in Domestic Capital

Posted on by Kihingu Inc

Patrick Njoroge (“A financial meltdown in Africa will affect everyone”, Opinion, September 4) is correct in highlighting improved financial inclusion and growth in remittances as reasons to be cautiously optimistic about Africa’s long-term future. Business leaders in retail finance must surely be looking forward with great confidence to the economies of scale that will eventually come from serving a tech-savvy population whose median age is 19 and growing almost three times faster than that of the EU.

But he overlooks another reason for optimism — the growth in domestic institutional assets under management, which FSD Africa estimates now stand at well over $2.4tn across Africa, 50 times greater than annual aid flows to the continent. Growth in Kenyan pension assets in 2024 was up 14 per cent in Kenyan shilling terms and 40 per cent higher in dollars, but could have been even faster, according to the regulator, had there been a more supportive policy and regulatory environment.

As Njoroge rightly says, Africa needs stronger domestic financial markets. Rebalancing long-term financing towards local currency would make growth less reliant on international finance, including aid, and more resilient to shocks, not least those resulting from climate change.

As an innovation in African financial markets, mobile money was staggeringly successful. We now need breakthrough innovation in African capital markets to draw private institutional capital away from defaulting to funding government debt so that potentially very large volumes of capital can be put to work funding the projects that will give Africans the jobs and basic services they want.

Mark Napier

Chief Executive Officer, FSD Africa, Nairobi, Kenya

Four African Projects Selected for CAPE’s First Cohort

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FSD Africa, through the Carbon Accelerator Programme for the Environment (CAPE), has announced the first cohort of projects to receive support in advancing community-led ecosystem restoration through nature-based carbon initiatives.

Chosen from over 100 applicants across 28 African nations, the four projects span Kenya, Nigeria, Tanzania and Zambia, and together cover more than one million hectares of land. They include forest regeneration in Nigeria’s Gashaka Gumti National Park, community-led restoration in Tanzania’s Rubeho Mountains, rangeland rehabilitation in Zambia’s Barotseland, and mangrove restoration in southeastern Kenya’s Papariko Mangroves.

Launched in November 2024 by FSD Africa, in partnership with the African Natural Capital Alliance (ANCA) and Finance Earth, CAPE was designed to address the shortage of early-stage funding for nature-based carbon projects in Africa. By offering recoverable grants and tailored transaction advisory support, CAPE helps projects move from concept to investment readiness.

With Africa’s GDP heavily dependent on natural capital, these projects demonstrate how nature can serve as both a climate solution and an economic asset.

As Reshma Shah, Carbon Markets Lead at FSD Africa, noted:

These projects go beyond generating carbon credits—they are blueprints for redefining how the world invests in and values nature.

You can access the full press release here.

FSD Africa and Children’s Investment Fund Foundation (CIFF) launch Sovereign Debt Advisory & DMO Institutional Support Programme

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FSD Africa Launches New Programme to Integrate Sustainable Finance into Africa’s Debt Strategies

FSD Africa, in partnership with the UN Economic Commission for Africa (UNECA) and supported by the Children’s Investment Fund Foundation (CIFF), has launched a new technical assistance and institutional support programme for Debt Management Offices (DMOs) across Africa.

The initiative will help governments embed sustainability into their sovereign debt strategies, unlocking fiscal space for development and climate action, while mobilising both domestic and international investment.

Announced shortly after the Africa Climate Summit in Ethiopia, the programme reflects FSD Africa’s commitment to advancing Africa-led solutions, resilient local-currency finance, and sustainable growth. It also builds on FSD Africa’s 2025–2030 strategy, which aims to catalyse £10 billion of private capital—most of it in local currency—for climate-positive economic transformation.

The facility will provide DMOs and Ministries of Finance with funded, practical support in areas such as sustainability-integrated debt strategy, preparation of new financing instruments, investor engagement, institutional strengthening, and market development.

Mark Napier, CEO of FSD Africa, commented:

Sustainable finance is not a label change—it’s a fiscal strategy. By integrating sustainability into sovereign debt management, countries can lower refinancing risk, extend maturities, and unlock capital for productive, climate-positive national priorities.

You can access the full press release here.

FSD Africa Investments announces first investment in Nature-Based Solutions with US$2.5m commitment to West Africa Blue

Posted on by Allan Musumba

Nairobi, July 2, 2025: FSD Africa Investments (FSDAi), the UK-backed specialist development finance investor, is investing US$2.5 million into West Africa Blue (“Blue”)’s blue carbon project in Sierra Leone’s Sherbro River Estuary (SRE). The investment was announced by the UK Foreign Secretary, the Rt Hon. David Lammy MP, at the Africa Debate in London on Wednesday 2 July 2025. FSDAi’s investment will contribute to the conservation and restoration of approximately 94,000 hectares of mangrove ecosystems across 11 chiefdoms. Working in close collaboration with local communities, the project will demonstrate the potential for blue carbon nature-based solutions to sustainably address climate change, protect biodiversity and build income diversification and economic development opportunities.

Mangrove ecosystems are powerful carbon sinks that combat climate change and build coastal resilience. Despite their promise, blue carbon projects struggle to raise private sector investment due to their complexity, extended timelines to scale and high execution risks. FSDAi’s early-stage investment will help de-risk the SRE project and demonstrate the feasibility of structuring financing facilities linked to carbon revenue, enabling project developers to transition from a dependence on scarce philanthropic and concessional funding towards a model that attracts commercial investment. This aligns with FSDAi’s broader mission to mobilise capital and promote development impact in underserved communities. The project is FSDAi’s first direct investment in a nature- based solution and will complement its existing portfolio that enables capital allocation to Africa’s green economic growth by backing existing asset managers and venture builders.

In addition to significantly reducing greenhouse gas emissions and protecting biodiversity, the project is expected to significantly empower the economic livelihoods of local communities. A core component of the project is the development of an innovative, equitable and transparent benefit sharing mechanism in consultation with communities and the government.

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

“This strategic US$2.5 million investment in West Africa Blue’s pioneering blue carbon project in Sierra Leone marks a significant step for FSDAi. As our first direct foray into nature-based solutions, it underscores our commitment to demonstrate the financial proposition to financing nature and creating economic opportunities for communities.”

Elizabeth Littlefield, Blue’s Senior Partner, said, “West Africa Blue is grateful for the support and partnership of FSDAi in this groundbreaking project which will be transformative for communities and the coastal ecosystem that is their home. With FSDAi’s support, we aim to set a high benchmark for quality, transparency and fairness including sharing our Benefit Sharing Agreement and other tools, in order to catalyze the nature-based solution market in Africa.”

About West Africa Blue
West Africa Blue (“Blue”) is a community-centric developer of high integrity, large-scale, blue carbon projects in West and Central Africa. Blue partners with local communities and governments to develop financially sustainable projects that seek to mitigate climate change, boost community resilience, and protect biodiversity. Based in Freetown, Sierra Leone, Blue has worked in the region for over a decade. Its flagship mangrove conservation and restoration project is in the Sherbro River Estuary of Sierra Leone, with a second project in Guinea and a pipeline of other, early-stage projects. Blue offers its projects as ‘Living Labs,’ sharing its lessons learned, tools, models and even its full Benefit Sharing Agreement, open source, to help develop the market for high integrity nature-based projects in Africa and beyond.
For more information, visit https://www.westafricablue.org/.

ARM-Harith and FSD Africa Investments Announce GBP 10m Commitment to Unlock Nigerian Pension Funds and Catalyse Local Capital for Infrastructure

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FSD Africa Investments (FSDAi), the UK-backed specialist development finance investor, is investing GBP 10 million into ARM-Harith’s Climate and Transition Infrastructure Fund (ACT Fund) to unlock local institutional capital for climate infrastructure. ARM-Harith Infrastructure Investment Limited is a leading African private equity firm committed to catalysing economic growth through sustainable infrastructure.

ARM-Harith and FSDAi’s investment introduces an innovative solution to allow Nigerian pension funds to address a longstanding challenge in infrastructure equity finance: the ability to invest while receiving early liquidity. By enabling predictable interim distributions during the early phases of investment, this innovative facility directly addresses a key barrier that has historically deterred domestic institutional capital from entering the asset class.

In addition, 75% of the FSDAi facility will be provided in local currency — a first-of-its-kind approach specifically designed to mitigate the impact of foreign exchange volatility for pension funds. This structure is expected to unlock an additional GBP 31 million in pension fund contributions — nearly five times the participation achieved in ARM-Harith’s first fund.

FSDAi’s investment aligns with its broader mission to deepen African financial markets towards accelerating the financing of Africa’s green economic transformation and will support the Fund’s investments in climate-resilient infrastructure including energy, transport, water, and digital connectivity. In alignment with at least four of the UN’s Sustainable Development Goals, the initiative is projected to create or support approximately 3,000 green jobs.

The British Deputy High Commissioner in Lagos, Mr. Jonny Baxter said,

“The UK government, through its bilateral and investment vehicles is committed to continue to support the country’s financial sector — developing domestic capital markets as a means of financing priority sectors and driving economic development. Local currency capital helps mitigate the impact of foreign exchange volatility, narrows the financing gap, supports diversification into new asset classes and into climate-related projects and social sectors – while providing long-term funds to growing businesses.”

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

“We are thrilled to collaborate with ARM-Harith to showcase how risk-bearing capital from a market-building investor like FSDAi can be strategically structured to unlock domestic institutional capital. This approach strengthens Africa’s financial markets and facilitates capital allocation towards sustainable, green economic growth across the continent.”

ARM-Harith CEO Rachel Moré-Oshodi emphasized the significance of this investment:

“For too long, domestic pension funds have remained on the sidelines of infrastructure equity due to liquidity constraints and heightened perception of risk. We are proud to have collaborated with FSDAi to design a pioneering solution that reduces risk for pension funds while delivering both early liquidity and long-term capital growth. This is a global first—a groundbreaking private sector-led solution that could fundamentally change how infrastructure equity is financed—not just in Nigeria, but across Africa.”

Bank of Industry and FSD Africa Collaborate to Drive Green Finance Initiatives in Nigeria

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Lagos, Nigeria – The Bank of Industry (BOI) is pleased to announce a significant milestone in its commitment to promoting sustainable finance in Nigeria with the formal signing of a Memorandum of Understanding (MOU) with FSD Africa, a leading agency dedicated to strengthening climate financing in financial markets across Africa.

Under this partnership, FSD Africa will deepen BOI’s sustainability finance proposition, providing technical assistance, strategic guidance, and capacity development initiatives. This will involve supporting the bank in strengthening its sustainability strategy, delivering decarbonisation pathways and advancing its adaptation finance initiatives. These resources will better position BOI to offer tailored lending solutions and business support for Nigerian climate-focused projects, further solidifying its position as a key driver of green finance in the country. 

The MOU establishes a robust framework for collaboration, enabling BOI to expand its climate financing portfolio and support enterprises committed to sustainability. This partnership will deepen BOI’s impact in fostering climate-resilient economic growth across Nigeria.

Speaking at the signing ceremony held at BOI’s headquarters in Lagos, BOI Managing Director/CEO Dr. Olasupo Olusi said:

“This partnership with FSD Africa is a critical step in our efforts to promote climate resilience and sustainability as one of our central pillars of our operations. Together, we will pioneer innovative solutions that address the challenges of climate financing while unlocking opportunities for businesses and communities across Nigeria.”

Representing FSD Africa at the event, Dr. Evans Osano, Chief Financial Markets Officer, said:” Our partnership with BOI in advancing sustainable finance is pivotal at this critical time. Nigeria’s annual climate finance gap is estimated at USD27.2 billion. Bridging this gap requires concerted effort including catalysing domestic capital in addition to international investments to drive sustainable investments.  We are excited about the bank’s commitment to promoting climate transition and driving Nigeria’s climate commitments towards net zero, and we are happy to be part of this journey.”

The MOU aligns with BOI’s recently launched three-year strategic plan, which prioritizes climate and green finance as key focus areas.

“With the support of strategic partners like FSD Africa, we are confident that BOI will continue to play a leading role in fostering sustainable development and driving positive change across Nigeria’s economic landscape.”Dr. Olusi added.

This partnership represents the beginning of a transformative journey, creating a framework for innovative and impactful collaboration. BOI and FSD Africa reaffirm their shared commitment to advancing the climate finance agenda in Africa and addressing the pressing challenges of climate change.

Ethiopian Securities Exchange Launch Marks a New Dawn for Ethiopia

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The Ethiopian Securities Exchange (ESX) was officially launched today in a colorful event officiated by Prime Minister Dr. Abiy Ahmed. The exchange, established by the country’s sovereign wealth fund, Ethiopia Investment Holdings (EIH) in partnership with the Ministry of Finance and FSD Africa, marks a historic milestone in Ethiopia’s economic development.

Licensed by the Ethiopian Capital Market Authority in December 2024 to operate as a Securities Exchange and Over the Counter (OTC) market, ESX is set to revolutionise the nation’s capital markets. By providing equitable access to capital and enhancing liquidity, it aims to support private sector growth in Ethiopia, the second most populous country in Africa and one of the fastest growing economies globally, with projected GDP growth of 6.5 in 2025.

For decades Ethiopia’s financial sector has lacked a strong mechanism for equitable access to capital and liquidity for the private sector. In particular, the lack of an interbank trading platform has meant banks could not effectively lend to one another. This resulted in high interest rates to borrowers and significant inefficiencies in bank liquidity management which has in turn constrained businesses, particularly small and medium-sized enterprises (SMEs).

The new exchange is already addressing this challenge. An interbank trading platform, which is part of the exchange, is optimising liquidity and improving credit flow in the banking system. Since its pilot in late October 2024, the platform has facilitated trades exceeding ETB 135 billion (USD 1.1 billion), demonstrating robust uptake by the banking sector. By enhancing price transparency and reducing transaction costs, the platform is already improving credit accessibility for businesses, enabling them to grow, innovate, and drive economic activity.

ESX’s state-of-the-art multi-asset Electronic Trading Platform, which is integrated with a modern Central Securities Depository for post-trade settlement and clearing, will also support more efficient issuance and trading of financial instruments such as Equities, Treasury Bills and Bonds, Corporate Bonds, Commercial Papers, Repos, and Derivatives. This is expected to attract both domestic and international investors, further strengthening Ethiopia’s financial markets.

ESX CEO Tilahun Esmael Kassahun was optimistic that the new bourse would inject dynamism in the economy and deepen especially the debt market to the benefit of all actors in the ecosystem.

“We see the new securities exchange as a multi-faceted financial infrastructure, providing multiple markets and variety of products, catering for different types of issuers and investors. The Fixed income market will provide a platform to list and trade debt instruments including treasury bills and bonds, corporate bonds and Shariah compliant securities such as Sukuk Bonds.”

On his part, FSD Africa CEO Mark Napier underscored the role of modern and deep capital markets in accelerating the already impressive economic growth momentum of Ethiopia.

“The launch of the ESX is a true game-changer for the country. As an organization running development finance programmes in well over thirty African countries, we know only too well the impact well-functioning and modern capital markets can have in catalyzing economic growth. We are proud to have played a role in the development of this exchange, that will undoubtedly spur equity, fixed income and other innovative financial instruments,” noted Mark.

The launch of ESX follows significant economic reforms in Ethiopia over the past year, including floating the national currency, the Birr, opening the banking sector to foreign competition, and advancing capital market development. The exchange is poised to become a vital platform for raising capital, trading securities, and driving economic transformation.

UK Invests USD $5.2 Million in USD $240 Million SME Listed Fund Sponsored by FSD Africa, Targeting Institutional Investors.

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Tuesday, 5 November – The British High Commission Nairobi has announced a USD $5.2 million fund (KSH 667 million) to support Micro, Small, and Medium Enterprises (SMEs) in Kenya. This initiative exemplifies the UK’s commitment as a long-term partner, providing investment solutions that foster growth and job creation.

British High Commissioner to Kenya, Neil Wigan, said:

“We must lower the cost of borrowing for Kenyans. This fund further bolsters the UK’s financial toolkit in Kenya, which has supported long-term job creation and economic growth over many years. It will deliver for all the hardworking hustlers of this country—especially women, young people, and persons with disabilities—who are often pushed to the margins of the Kenyan economy. The UK’s economic relationship with Kenya is the cornerstone of the UK-Kenya strategic partnership, and we look forward to delivering this together.”

The ‘Listed SME Debt Fund,’ sponsored by FSD Africa, aims to mobilize up to USD $300 million (KSH 38.85 billion) of sustainable finance to provide affordable credit to micro, small, and medium-sized enterprises. Of this amount, the fund targets to raise USD $240 million from domestic institutional investors, with the remainder sourced from foreign investors. It is expected to support at least 10,000 MSMEs, benefiting 50,000 households, creating, protecting, and supporting over 89,000 jobs, and improving access to basic services for over 200,000 people.

The fund is not sector-specific and will cater to the diverse needs of Kenyan business owners, ranging from artisans to financiers and farmers, by lowering the cost of borrowing. It will be listed and managed in Kenya, aiming to provide an attractive investment opportunity for Kenyan investors by de-risking investments in MSMEs while still offering attractive returns.

Currently, SMEs in Kenya face interest rates of up to 40%, making it challenging for businesses to grow and create jobs. This fund will also encourage pension funds to invest in sectors that support the flow of goods, services, and labor in Kenya.

Mark Napier, CEO of FSD Africa, stated:

“The SME sector holds tremendous potential for Kenya’s socio-economic transformation, comprising approximately 98% of all businesses and creating a significant number of jobs. FSD Africa is thrilled to launch this innovative fund dedicated to supporting small and medium enterprises in Kenya. This fund will provide affordable credit to businesses that have historically faced challenges in accessing financing. Moreover, it will offer MSMEs a route to growth across borders and support local employment rates and the growth of the Kenyan economy.”

The first close of the fund is targeting USD $100 million. Kenyan institutional investors, including pension funds, have assets under management exceeding USD $30 billion. Despite regulatory approval allowing investment of up to 30% in alternative assets, many have yet to capitalize on this opportunity. The SME listed fund introduces a new asset class, aiding in portfolio diversification and stabilization. This aligns with FSD Africa’s mission to deepen and diversify capital markets through innovation.

SMEs are vital to Kenya’s economic growth, accounting for 98% of businesses and approximately 24% of the country’s gross domestic product. Beyond their economic impact, SMEs serve as essential engines of employment generation, particularly for marginalized groups such as youth, women, and persons with disabilities, providing around 14 million (30%) of jobs.

The announcement was made at a major pan-African Capital Markets conference organized by FSD Africa, a specialist development finance institution fully funded by the UK Government.

FSD Africa Launches Carbon Accelerator Programme for the Environment (CAPE) to Unlock Finance for High-Integrity Nature-Based Carbon Projects in Africa

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FSD Africa Launches Carbon Accelerator Programme for the Environment (CAPE) to Unlock Finance for High-Integrity Nature-Based Carbon Projects in Africa

Nairobi, Kenya [01 November] – FSD Africa is proud to announce the launch of The Carbon Accelerator Programme for the Environment (CAPE), a pioneering initiative designed to catalyse investment into high-integrity nature-based carbon projects across Africa. CAPE addresses two critical challenges: the lack of investment flow into projects that tackle climate change and biodiversity loss, and the need to build confidence in Africa’s nature-based markets.

The programme aims to provide direct support to projects that have significant potential but are struggling to secure full funding. By leveraging a combination of high-quality carbon credits and biodiversity improvements, CAPE seeks to demonstrate that there is a viable commercial business case for investors while offering a solution to integrity challenges in nature-based markets.

 

CAPE will be delivered in partnership with Finance Earth, a leading independent impact investment advisory firm, as the implementing partner, and the Africa Natural Capital Alliance (ANCA), a collaborative coalition focused on mobilising private capital for nature-based solutions in Africa, as a core partner.

 

Nature-based carbon project developers are invited to register interest in the programme following this link, to receive an Expression of Interest form in the coming days. Following the selection process, CAPE will deliver project development funding and technical support to up to 5 projects for a year from Spring 2025.

Reshma Shah, Lead Carbon Markets, FSD Africa

“Having just returned from COP16 Biodiversity, the urgency of accelerating nature-based solutions that address both climate change and biodiversity loss is more evident than ever. CAPE, with its dual focus on carbon and biodiversity, offers the perfect platform for deepening our understanding of how to implement these solutions effectively. It not only highlights the importance of these initiatives but also showcases their investability, paving the way for impactful projects that can transform our relationship with nature.” 

 

A new approach to nature-based carbon financing

 

CAPE’s unique approach targets projects that are technically feasible but have yet to reach financial close. Through the provision of transaction advisory services and technical project development support, CAPE will create demonstration cases to show how joint carbon financing and nature-positive ventures can be investable.

 

By integrating carbon credits with biodiversity conservation, CAPE addresses revenue issues in biodiversity projects and offers investors practical guidance on harnessing the potential of nature-based solutions. CAPE is positioned to demonstrate how these models can scale to meet investor demand for high-integrity projects.

Dorothy Maseke, Head of the ANCA Secretariat

“At ANCA, the launch of the Carbon Accelerator Programme for the Environment (CAPE) is a pivotal moment in advancing Africa’s nature-based markets and living to the principles and actions of the ANCA Nature Voices Pledge. CAPE reflects months of consultations with ANCA members and key stakeholders through FSD Africa’s work, aiming to tackle two core challenges: the limited investment flow and the confidence gap in Africa’s nature-based solutions. By partnering with FSD Africa and Finance Earth, we are supporting high-potential projects that struggle to secure full funding. CAPE will make a compelling case for investment in these vital markets, catalysing long-term support for sustainable projects across the continent.” 

 

Building a market for high-integrity projects

 

One of the key features of CAPE is the creation of a “living lab”, where knowledge and best practices will be open sourced for the benefit of the wider market. This will provide a platform for developers to learn from peers who have successfully navigated similar challenges and will include templated guides and resources to help other projects advance towards financial close. By building this ecosystem, CAPE is ensuring that a pipeline of high-integrity nature-based carbon projects can be replicated and scaled.

Richard Speak, Managing Director, Finance Earth

“The launch of CAPE comes at a pivotal moment to mobilise the investment needed to tackle climate change and biodiversity loss across Africa. We are thrilled to partner with FSD Africa and ANCA to deliver CAPE, providing support in the critical phase of the journey to unlocking investment in high-integrity nature-based carbon projects. By working closely with project developers and openly sharing what works, we will not only create individual success stories – we’re aiming to build a community of practice that can accelerate financing for nature, climate and communities across Africa.” 

Expected benefits of CAPE

Accelerated investment – by demonstrating the financial viability of projects that combine carbon credits and biodiversity conservation, CAPE will unlock new flows of capital into unfunded areas.

Increased project integrity – CAPE’s rigorous approach ensures that projects are of high integrity, addressing long-standing challenges in the carbon markets.

Market-building resources – the open-source nature of CAPE’s “living lab” will help replicate success and scale the market for nature-positive carbon projects across the continent.