We invest to build Africa’s economic resilience by strengthening its financial systems

FSD Africa Investments (FSDAi) is the UK-backed specialist development finance investor that supports FSD Africa’s market building initiatives in the early-stage finance, capital and insurance markets.

We invest in novel financial intermediaries, facilities and instruments by providing patient, risk-bearing capital that strengthens the role of finance in driving sustainable economic development.


Why Our Work Matters

Finance plays a critical role in enabling Africa to realise its economic potential for people and planet. Strengthening its current financial system to deliver accessible and sustainable capital will position the Continent to develop its domestic financial markets and better engage in the global financial system.

Private investors in Africa are limited by a high level of risk, both real and perceived, as well as a lack of viable projects and insufficient financial infrastructure. Local markets are small and fragmented, and financing models for green and inclusive growth are still emerging. This leads to a mismatch between the supply of capital and Africa’s urgent financing needs.

FSDAi exists to tackle these challenges. We unlock investment by backing innovative financial intermediaries, structures and instruments that are more suited to Africa’s needs and thus expand access to finance. Our investments demonstrate new pathways to address gaps in Africa’s financial system.

Programme Video

Our Approach

We’re not a traditional investor. Our job is to take on early risk, test new models and catalyse capital from others, to build momentum behind promising solutions. We invest at the frontier of finance where commercial capital is hesitant to go.

FSDAi works with the wider FSD Africa team and our strategic partners to align investment with market-building efforts, unlocking long-term capital to support sustainable development. 

Our strategy is built around a three-part ‘Test, Accelerate, Mobilise’ model:


Test

We support novel, high-potential financial solutions that lack a track record.

Accelerate

We back early-stage platforms and intermediaries to help them grow and demonstrate viability.

Mobilise

We de-risk investments to crowd in capital from local and international investors at scale.

Our Toolkit


We deploy a range of financial and non-financial tools to deliver our unique approach:

Flexible capital:

Equity, debt and blended finance solutions tailored to the needs of early-stage and high-impact initiatives.

Risk-sharing instruments:

Guarantees, credit enhancements and insurance-backed structures to align risk for co-investors.

Investment vehicles:

Platforms and funds focused on sectors like renewable energy, climate adaptation, nature and inclusive infrastructure where there is need to demonstrate the investment case.

Market infrastructure:

Support for the development of bond markets, exchanges and digital finance platforms that create more efficiency and liquidity.

Strategic partnerships:

Collaboration with development finance institutions, philanthropic organisations, asset managers and local institutions, to scale impact and share risk.

With a capital commitment of £309 million from FCDO, our investments are making a significant contribution to Africa’s financial sector and sustainable development, as of April 2025:


 
capital invested to 20 investments (exited two, one at 2x money)

 
amount of public and private capital mobilised and catalysed since launch in 2017

 
people enabled with access to finance to grow their businesses

 
people provided with access to basic services, including clean energy, housing and healthcare.

Investments

View All  
Green infrastructure
Green infrastructure
Committed Capital
GBP 11.6m
Market Impact Segment
Financial intermediaries
Focus Countries
SSA
Status
Active
+

Acre Impact Capital

Active

Invests in climate-aligned infrastructure in emerging markets by partnering with leading commercial lenders and export credit agencies.

Domain

Green infrastructure

Market Impact Segment

Financial intermediaries

Committed Capital

GBP 11.6m

Location

SSA

In Portfolio Since

Investment Lead

−
Carbon markets
Carbon markets
Committed Capital
GBP 1m & Grant-GBP 0.075k
Market Impact Segment
Early-Stage Ventures
Focus Countries
Pan-African
Status
Active
+

Africa Climate Ventures

Active

Africa Climate Ventures (ACV) is a pioneering venture builder working to build a portfolio of businesses focused on climate action across Africa, boosting continental participation in global carbon markets. ACV aims to launch and scale a portfolio of 15 climate positive ventures, over the next four years, by investing to: i) bring proven global climate technology to Africa, ii) accelerate and de-risk the continental expansion of technologies and business models that have gained traction in one or a few African market(s), and iii) add carbon revenue streams to existing African businesses with the potential to scale climate positive solutions.

Domain

Carbon markets

Market Impact Segment

Early-Stage Ventures

Committed Capital

GBP 1m & Grant-GBP 0.075k

Location

Pan-African

In Portfolio Since

2023

Investment Lead

−
Local bond markets
Local bond markets
Committed Capital
GBP 15m
Market Impact Segment
Financial architecture
Focus Countries
Pan-African
Status
Active
+

ALCB Fund

Active

The ALCBF promotes primary corporate bond issuances in local currency by working with African issuers, investors, and intermediaries to bring new deals to market. The Fund does so by acting as an anchor investor and through technical assistance, investing in transactions where the ultimate beneficiaries are low-income households and MSMEs. Focus sectors include financial inclusion, infrastructure, agriculture, housing, education, healthcare, and renewable energy.

Domain

Local bond markets

Market Impact Segment

Financial architecture

Committed Capital

GBP 15m

Location

Pan-African

In Portfolio Since

2017

Investment Lead

−
Green infrastructure
Green infrastructure
Committed Capital
GBP 10m
Market Impact Segment
Financial architecture
Focus Countries
Nigeria
Status
Active
+

ARM-Harith

Active

Invests in infrastructure and energy projects to address critical needs in key sectors and contribute to Nigeria’s sustainable growth and development.

Domain

Green infrastructure

Market Impact Segment

Financial architecture

Committed Capital

GBP 10m

Location

Nigeria

In Portfolio Since

Investment Lead

Stephen Macharia

−
Women-led businesses
Women-led businesses
Committed Capital
Market Impact Segment
Early-Stage Ventures
Focus Countries
West Africa
Status
Active
+

Aruwa Capital

Active

An early-stage growth equity and gender lens fund manager backing impact-driven businesses in Nigeria and Ghana.

Domain

Women-led businesses

Market Impact Segment

Early-Stage Ventures

Committed Capital

Location

West Africa

In Portfolio Since

Investment Lead

−
MFI liquidity
MFI liquidity
Committed Capital
GBP 7.4m
Market Impact Segment
Financial intermediaries
Focus Countries
SSA
Status
Active
+

BlueOrchard

Active

BlueOrchard is a leading global impact investment manager that is dedicated to generating lasting positive impact for communities and the environment, while aiming to provide attractive returns to investors. BlueOrchard’s Covid-19 Emerging and Frontier Markets MSME Support Fund is a facility set up to address the liquidity and solvency challenges faced by MFIs due to the Covid-19 crisis.

Domain

MFI liquidity

Market Impact Segment

Financial intermediaries

Committed Capital

GBP 7.4m

Location

SSA

In Portfolio Since

2020

Investment Lead

−

Contact Us

If you have an inquiry, please email fsdai-info@fsdafrica.org