FSD Africa launches $30m insurtech fund to expand financial resilience across the continent

The new pan-African venture fund will back early-stage startups improving insurance access and affordability in underserved markets.

Kelvin Massingham, director for adaptation and resilience at FSD Africa. 

FSD Africa has unveiled a new insurtech investment initiative worth between $25 million and $30 million, aimed at boosting innovation and expanding access to insurance across the continent. The organisation, a specialist development agency focused on strengthening Africa’s financial markets, supports solutions that enhance financial inclusion and resilience in emerging economies.

The new Inclusive Insurtech Investment Fund (3iF) will operate as a pan-African venture vehicle investing in early-stage startups that make insurance more accessible, affordable and relevant for underserved populations. The blended capital structure brings together junior equity from catalytic backers, led by FSD Africa Investments, alongside senior equity from commercial and strategic investors headed by Zep Re.

According to FSD Africa, the initiative is designed to help close Africa’s wide protection gap, where insurance penetration remains below 3% in most markets. This gap leaves individuals, farmers and small businesses vulnerable to unexpected shocks, a challenge amplified by climate-related disasters. In 2022 alone, roughly 80% of the continent’s economic losses tied to natural hazards were uninsured.

Kelvin Massingham, director of adaptation and resilience at FSD Africa, said the fund marks a pivotal step for the region’s financial resilience. By nurturing a new generation of insurtech innovators, he noted, 3iF aims to support solutions that strengthen climate resilience, promote financial security and deliver long-term economic benefits for communities and enterprises across Africa.