Country: Ethiopia

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.

Nature-based carbon projects in Ethiopia invited to apply for support from The Carbon Accelerator Programme for the Environment (CAPE)

Posted on by Allan Musumba
CALL FOR APPLICATIONS

Addis Ababa, Ethiopia, 9 September 2025: The Carbon Accelerator Programme for the Environment (CAPE), in partnership with FCDO Ethiopia, is pleased to announce that it is seeking applications from impactful nature-based carbon and biodiversity projects in Ethiopia for its next cohort.

Local nature-based carbon project developers are invited to submit an Expression of Interest (EOI) via this link: https://forms.gle/Yq9eQ4Pc2HyCfNLB8 no later than 17:00 EAT on Friday 26th September.

CAPE is an initiative being delivered by FSD Africa in partnership with Finance Earth and the African Natural Capital Alliance (ANCA) to mobilise investment into projects across Africa to cut carbon emissions and protect biodiversity while also benefitting local communities.

Who is eligible for this cohort?

  • Location: Projects located in Ethiopia
  • Project Type: Nature-based carbon projects with strong biodiversity and local community impact potential
  • Development stage: We encourage projects at any stage of their development journey to apply

CAPE provides project development support and transaction advisory services to accelerate high-integrity, nature-based projects towards investment.

The first cohort of CAPE is already underway, with support being provided to four projects in Kenya, Tanzania, Zambia and Nigeria.

CAPE is particularly interested in projects that:

  • Have a clear pathway to financial viability
  • Are considering biodiversity and social impact beyond carbon standard requirement (e.g., Verra CCB)
  • Intend to use a robust standard for validation and verification
  • Can be scaled and/or replicated

By applying, you wlll be considered for tailored support from the CAPE team to strengthen your project’s technical, financial, and impact foundations, and prepare it for investment.

FSD Africa at ACS 2

Posted on by Allan Musumba

It is two years since African leaders gathered in Nairobi for the first African Climate Summit. The resulting pledges, amounting to $26bn, were strong evidence of a real commitment to Africa-led climate solutions. But even more important was the summit’s assertion of African self-determination and specifically the need to mobilise Africa’s domestic private capital in the continent’s climate efforts.

As leaders gather again for the second Africa Climate Summit (ACS2) in Addis Ababa, the world looks very different. There is huge global uncertainty, and the economic headwinds are even stronger. Never has the vision set out at that first summit, and in the subsequent Nairobi Declaration, of a green path to economic growth that delivers both prosperity and environmental benefits, been more relevant and more important.

This is why we wholeheartedly support the aims of ACS2 and hope to see emerging from it an even greater consensus around the value of investing in climate. The summit is also a chance to set out even more compellingly the argument that investing in climate and economic growth are not mutually exclusive but rather complementary and to make the case for greater private sector, particularly domestic, investment in the continent.

The recent cuts to overseas aid have only added to the urgency for the continent to become more economically independent and resilient. That will require stronger domestic financial markets and more long-term financing in local currency to make growth less reliant on international finance, including aid, and more resilient to economic shocks, not least those resulting from climate change.

Indeed, our belief that a green path to growth will deliver a stronger and more resilient economy and that mobilising domestic private capital will be key to this, are central to FSD Africa’s mission to make finance work for Africa’s future. This approach is embodied in our new strategy which is based around three key imperatives: increasing economic opportunity, protecting the environment and increasing resilience to climate and economic shocks. We have an ambitious target to mobilise and catalyse £10bn of private capital for sustainable development, 84% of it in local currency.

But the strategy also reflects the immediate problems facing many countries in Africa with a focus on sustainable debt, more adaptation finance, job creation and the need for more climate finance to power the energy transition – all areas we will be discussing across the more than half a dozen events we are hosting or co-hosting at ACS2.

Above all this summit is an opportunity to show how Africa can be at the forefront of finding solutions to the twin threats of climate change and nature loss by highlighting proven Africa-led climate solutions and the continent’s bold efforts to re-green its landscapes. In that spirit, we and our partners will also be highlighting examples of the extraordinary financial innovation that is taking place across different parts of the financial system and presenting some of the transactions that have resulted.

Please join us at ACS II in Addis Ababa from 08th to 10th September to discuss these issues

A Deep Dive Study on the Impact of Regulatory Interventions

Introduction

Despite their potential in driving development, Africa’s capital markets remain underdeveloped. They are narrow and illiquid, with few listed and tradable securities, too few issuers, investors, intermediaries and a lack of financial product diversity, often dominated by government bond markets.

In response to the challenges that African capital markets face, FSD Africa has been providing technical assistance to regulators since 2016, particularly by assisting in strengthening regulatory frameworks and through capacity building. This learning brief presents some key lessons from the some of  FSD Africa regulatory efforts on strengthening capital markets in Africa.

The Emerging Regulatory Agenda – Improving Transparency of Nature-related Risks in Africa

Executive Summary

Financial regulators around the world are recognising that the depletion of nature poses major risks to financial and economic stability: these are additional to climate change risks.

  • They have the opportunity to act on nature-related risks because doing so ensures that they fulfill their core mandate to maintain financial stability.
  • Transparency is the cornerstone of strong risk management.
  • Regulatory momentum regarding disclosure of nature-related risks has been increasing globally.
  • African regulators, in particular, will see the benefit of acting with urgency because the continent is disproportionately exposed to nature-related risks.
  • African regulators can engage with this new agenda by following a set of no-regret moves as a key first step in developing a roadmap to incorporate nature-related risks into financial disclosure.
  • These no-regret actions include aligning with a government agenda, understanding requirements, determining availability of capacity, and engaging with existing nature alliances.

Introduction

Degradation of our natural ecosystems poses a significant risk to our financial and economic stability. A significant portion of our global economic product relies on nature and natural systems. As human activity and climate change continue to deplete these systems, we need to create a regulatory agenda to better manage nature-related risks and the harms they can create. This paper offers up next steps for this regulatory agenda, specifically in the context of Africa, illustrating the urgency to do so for African economies, why transparency should be an important component of any regulatory agenda, and what African regulators can do to support stable nature-positive economies.

A rapid analysis of the gender intentionality of Africa’s Nationally Determined Contributions (NDCs)

Introduction

As countries gather at UN Climate Change Conference (COP28) in the UAE, where the highly anticipated first-ever global stocktake is expected to conclude. We are pleased to share – A rapid analysis of the gender intentionality of Africa’s Nationally Determined Contributions (NDCs).

This paper investigates gender intentionality using several dimensions including gender-responsive budgeting in African NDCs. More importantly, the paper explores whether countries are mobilising and allocating climate finance with a gender lens, and it makes recommendations for governments, financiers, and investors to ensure climate finance is not gender neutral.

African countries are called upon to reflect on key gaps articulated in this paper, and work towards accelerating gender-responsive climate finance actions.

Is it time for a solar receivables finco?

In the last ten years PayGo – the method of distribution and financing of off-grid solar home systems (SHS) – has revolutionized the effort to bring clean, renewable energy to people in Africa without access to electricity.

While the achievements of the PayGo sector are a cause for celebration, the companies that employ this business model have struggled. Several notable companies have failed outright. Others have slowly wound down or continue to struggle. Most – although not all – of the remaining companies have not achieved profitability after five or more years of operations.

Today, those of us working in the PayGo sector are making an effort to understand why PayGo companies have generally not achieved profitability and what can be done about it.

This paper presents our analysis of one of the key weaknesses in the PayGo industry and provides a prescription for the next stage of the industry’s evolution. Our analysis centers around a central feature of PayGo companies: each PayGo company is essentially two businesses. One is a solar products retail distribution company. The other is a consumer finance company, or
“Finco”.

It is estimated that 490 million people are accessing energy through off-grid solar solutions worldwide. In Africa, nearly 50% of these are people that would not have been able to afford solar home systems without the financing provided by PayGo. This is nothing short of remarkable.

West African Economic and Monetary Union (WAEMU) Green Bond Scoping Report

The Member States of the West African Economic and Monetary Union (WAEMU) face the triple challenge of addressing the consequences of climate change, developing infrastructure in light of strong anticipated demographic growth, and rebounding from the impacts of recent global shocks such as the COVID-19 pandemic (hereafter “COVID”) and the war in Ukraine. These challenges need to be met in the context of sizable long-term financing gaps in several economic sectors, and within the fiscal constraints imposed by sovereign debt burdens which, for some Member States, are significant – especially in the context of tightening global credit markets and rising interest rates. Faced with these challenges, Member States need to ensure the development of their economy, while integrating the commitments developed within their Nationally Determined Contribution1 (NDC), which aim to combat climate change as part of broader national development plans. In this regard, private sector actors are required to contribute alongside public sector actors to the achievement of climate change mitigation and adaptation objectives, particularly in sectors whose expected contribution has been defined as relatively important.

“Green Bonds” are financial instruments whose proceeds are utilised to finance eligible projects and activities designed to foster sustainable, resilient and inclusive growth. In this sense, Green Bonds fit into the list of alternative financing mechanisms that can be used to solicit some of the capital needed for national objectives, potentially allowing access to a broader and more diverse investor base, some of whose investment mandates include positive environmental and social impact requirements.

This Study focuses on the feasibility of developing an active market for Green Bonds in the WAEMU region and aims to assess the potential for sovereign and corporate Green Bond issuance. The Study highlights multiple deficiencies that may impede the development of such a market, and provides recommendations to overcome them. Initiatives and interventions that should be taken to foster the emergence of such a market are also presented, as well as opportunities to develop a pipeline of green projects and activities eligible for Green Bond financing.

Given the regional, multi-country scope of the Study, a desktop review and stakeholder consultation was undertaken to identify common barriers, which are primarily related to three themes:

  • The underdevelopment of the regional financial market relative to international standards.
  • The lack of Green Bond and general climate initiatives from national governments, institutions and industries.
  • The generally low level of familiarity among key market stakeholders with the international standards and requirements associated with Green Bonds, and consequent low capacity to meet such standards.

For each barrier identified, actionable recommendations are drawn from the lessons learned from more successful Green Bond programmes in other Sub-Saharan African countries, whilst giving due consideration to the specific nuances of the WAEMU region to assess their applicability. The findings from the desktop research were then supplemented and validated during additional interviews and in a stakeholder engagement workshop to ensure the recommendations are context appropriate.

The desktop review covers the following key determinants of market development potential:

  • Regional debt capital market (structure, regulation, depth, liquidity, stakeholders, etc.)
  • Historic context and current trends regarding sovereign and corporate bond issuance (issuance features, context and objectives, subscription rate, credit, etc.)
  • Regional and national advances in climate integration and related initiatives.
  • Stakeholders’ capabilities with regard to international standards and requirements for Green Bonds
  • Investor appetite (investor awareness, investment trends, incentives, obstacles, etc.).

 

Fintech for Climate Resilience

 Climate change impacts are likely to send more than 130 million into extreme poverty by 2030. Africa, Latin America, and South Asia are among the most vulnerable regions, where natural disasters, food insecurity, and health hazards are already exacerbating the vulnerability of local communities. There is on urgent need to buildclimate resilience among households and communities vulnerable to the impacts of climate change.

Startup innovators ore at the forefront of creating the tools and services people need to manage disasters, adopt their assets and livelihoods, and build long-term resilience, They ore collecting data on disaster risk, launching insurance products, crafting regenerative agricultural models, and designing ways to access carboncredit markets.

As promising and impoctful as these innovations ore, they struggle with many of the challenges that face early-stage ventures: funding, talent, customer acquisition, partnerships, and more. At the heart of these challenges Is a commontheme: the difficulty of creating monetizable, commercial models that ore scalable with venture funds.

Fortunately, !he last decade hosshown us that fintech can enable greater accessibility and affordability of products for underserved, last­ mile populations, leveraging digital payments, satellite data, online marketplaces, and embedded finance infrastructure lo bring down costs. deliver access for low-income populations, and drive scalability of business models. Such achievements explain why investments in fintech companies increased from nine billion in 2010 lo over 220 billion in 2Q21.

Regulating for innovation in Africa – Cross-country synthesis note

This document outlines the findings across a series of studies commissioned by FSD Africa on the state of insurance innovation and regulation in eight countries in Sub-Saharan Africa (SSA): Ethiopia, Ghana, Kenya, Malawi, Nigeria, Rwanda, Uganda and Zimbabwe. It aims to inform regulatory authorities across the continent in the quest for balancing the mandate for market development and innovation with that of consumer protection.

 Innovation snapshot

Cross-cutting challenges to market development highlight untapped market potential. Across the study countries, low insurance penetration rates persist. Though the share of life insurance premiums in total premiums is growing, the market is for the most part still dominated by non-life insurance, and compulsory insurance plays a strong role. The result is that the voluntary retail insurance market still reaches a limited number of policyholders, and that large population segments such as rural inhabitants, informal sector workers and MSMEs remain un- or underserved. This indicates substantial untapped market potential in all the study countries.

More – and different – innovation needed. While innovation is present in all the study countries, each country is at a different stage along the innovation journey, depending on its unique country and market context. Some insurers have started to digitalise their processes and client engagement journey, and COVID-19 has provided an added impetus to do so. Some are implementing or pursuing alternative distribution partnerships, and some are doing market research to help target new market segments such as MSMEs. Partnerships with insurtech firms are emerging to help streamline internal systems and processes. On the whole, however, the cross-country innovation assessment shows that innovation is not yet entrenched in the fabric of the market or leveraged to reach underserved target market segments at scale.

 Key constraints to innovation

Various elements of the enabling environment or ecosystem shape the current innovation picture.