FSD Africa Investments (FSDAi) is the investing arm of FSD Africa, a UK International Development funded regional programme operating in more than 30 countries from its Kenya base, to make finance work for Africa’s future. While FSD Africa supports market development through advocacy, thought leadership, and capacity support, FSDAi makes investments in support of these policy objectives in novel financial instruments, facilities and intermediaries that can accelerate the role of finance in Africa’s green economic growth. As a private company limited by shares, FSDAi’s shareholders include both FSD Africa and the UK’s Foreign, Commonwealth & Development Office (FCDO).
FSDAi uses a range of equity, debt and guarantee-like investment instruments specifically designed to accommodate early-stage commercial risk, drive high market development impact, and generate acceptable risk-adjusted financial returns on investment. Across its portfolio it has invested alongside private capital strengthening Africa’s financial systems to deliver better-quality jobs and economic opportunities, equitable access to basic services, reduction of human vulnerability and inequity, and environmental benefits.
With a mandate to take significant investment risk, FSDAi fills an important funding gap by assuming the commercial risk of novel financial solutions that neither development finance institutions nor private investors are prepared to take. In this way, FSDAi assumes the investment risk necessary to drive structural change in Africa’s financial markets.
As the investment arm of FSD Africa, FSDAi deploys early-stage, risk-bearing capital to unlock green economic growth, benefiting both people and planet. Our investments are catalytic, serving to crowd-in larger volumes of private capital, and patient, with long-term horizons.
Our mission is to become a leading African impact investor at the forefront of efforts to solve critical development challenges across the continent. We are working towards this goal by investing in organisations that improve the availability and efficiency of funding for productive activities, basic social services and addressing climate change.
FSD Africa (Investments) Limited is a private company, limited by shares. It has 2 shareholders, FSD Africa and the UK’s Foreign, Commonwealth & Development Office (FCDO). We use a range of equity, debt and grant-based investment instruments specifically designed to accommodate early-stage commercial risk, drive high market development impact, and generate acceptable risk-adjusted financial returns on investment.
Our distinctive approach focuses on backing ambitious management teams with innovative financing solutions that fill a critical gap in the existing financial system – gaps requiring an investor with appetite for proof-of-concept investment risk. In this way, innovation potential and scalability lie at the heart of each investment decision we make.
Across our portfolio we also seek to invest in, and mobilise private capital for, mitigation and adaptation solutions that will address climate change. We believe strongly in the need for scalable private sector solutions to climate change in Africa– a continent in which extreme climate conditions are affecting livelihoods day-to-day, and where millions of vulnerable people are falling into poverty as a direct consequence of climate change.
We seek to achieve widespread and long-lasting developmental impact through our investments, measured by additional capital un-locked and improved availability of financial services. By enhancing the depth and availability of local capital, we are strengthening Africa’s financial systems to deliver better-quality jobs and economic opportunities, equitable access to basic services, reduction of human vulnerability and inequity, and environmental benefits.
As a catalytic investor, we seek out financial ventures with the potential to test and drive innovative models and products that can transform Africa’s financial markets, whilst mobilising significant co-investment finance from the private sector. We are prepared to assume early-stage investment risk for business models that show the potential for commercial returns and high impact. Selected examples from our three focus areas – Capital Markets, Digital Economy, and Risk & Resilience – are provided below.
To increase public and private access to long term and patient finance, as well as the availability of local money market instruments, green financing tools and affordable housing finance, among other key sectors.
To support business models that accelerate digital financial transformation in order to boost food security, energy access, intra-African trade, agricultural productivity, and climate and health resilience.
To increase insurance coverage, penetration and the management of catastrophic climate and disaster risk.