Overview

We support innovative solutions and ecosystem building initiatives that strengthen Africa’s transition to an inclusive and sustainable digitalised economy.

Mission Statement

Our mission is to capitalise on the digital evolution that is already taking place across Africa, accelerating projects that combine finance and digital technology in ways that are sustainable and lead to value creation for businesses and communities, particularly those impacted by climate change.

 

Strategy

Our approach combines two interlinked perspectives:

  • Digitising Finance: supply-side (“roots”): building efficiencies within financial sectors and enabling further reach into real economy sectors
  • Financing a digitalised transformation: demand-side (“fruits”): financing new needs and opportunities created through ongoing economic change

While our primary focus is on the demand-side, we recognise that both approaches are needed for Africa’s green economic transformation, given the continent’s current stage of digital evolution.

Current Portfolio

Financing a digitalised transformation:

  • Piloting a venture launcher that creates novel solutions to build climate resilience amongst vulnerable communities (TECA)
  • Investing in a fund to support African start-ups providing climate resilience solutions (Catalyst Fund)
  • Investing in a digital carbon credit marketplace that aggregates and links small-scale pro-climate projects to global buyers (CaVEX)
  • Supporting and actively participating in the CIFAR Alliance, a global network of public, private and development organisations focused on the nexus of financial innovation and climate resilience
  • Funding research on climate-related vulnerabilities and financing needs amongst communities in Nigeria (CGAP)

Digitising Finance:

  • Advising on the implementation of the Bank of Ghana’s regulatory sandbox that will prioritise solutions for underserved markets
  • Partnering with financial institutions to extend agent outreach and deliver financial services to vulnerable communities (Equity Bank Rwanda and Equity Bank DRC)
  • Partnering with learning institutions to strengthen the capacities of digital finance market actors and professionalise the sector (DFI, CCAF)

Tools

The Pillar uses a range of instruments depending on project need.  These include research, advocacy, technical assistance and grant funding.

Investment criteria

We seek innovative solutions and ecosystem building initiatives that combine finance and digital technology to reduce vulnerabilities and create value for Africans and businesses.  

Impact

The Pillar focuses on four strategic drivers, aligned with FSD Africa’s overall theory of change:

  • Environmental benefits delivered
  • Economic opportunities created
  • Fragility and vulnerability addressed
  • Gender equity realised
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