FSD Africa announces $30m insurtech fund
Africa faces a significant protection gap, with insurance penetration below 3% in most countries.
** For the best experience, download the free Africa Private Equity News app Android | iOS **
FSD Africa today announced its new $25–30 million Inclusive Insurtech Investment Fund (3iF) to accelerate insurance innovation and help 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.
The fund will have a blended structure, combining junior equity from catalytic investors – anchored by FSD Africa Investments, the organisation’s investment arm – with senior equity from commercial and strategic investors led by Zep Re.
Kelvin Massingham, director for adaptation and resilience at 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.”
Africa faces a significant protection gap, with insurance penetration below 3% in most countries. The result is that individuals and small businesses remain highly exposed to shocks. In 2022, about 80% of economic losses from natural disasters were uninsured, up from 58% the year before.
Want to know who is raising, investing, and exiting in Africa? Get Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Subscribe now