Financial sector development organisation FSD Africa has announced the establishment of a US $30 million Inclusive Insurtech Investment Fund (3iF), a pan-African venture capital vehicle designed to stimulate private investment in insurance technology and support early-stage insurtech startups, according to multiple reports.
Unveiled at the BimaLab Africa Insurtech Summit in Nairobi, the fund aims to accelerate insurance innovation and help bridge Africa’s significant protection gap, where insurance penetration remains among the lowest globally. The initiative targets startups developing products that expand access, affordability and relevance of insurance services, particularly in areas such as climate resilience, health coverage and financial inclusion.
The 3iF is structured to attract private capital by combining junior equity from catalytic investors anchored by FSD Africa Investments with senior equity from commercial and strategic partners, with Zep Re cited as a key participant in the blended capital vehicle. The fund is expected to launch in January 2026.
FSD Africa said the vehicle will not only provide growth capital to standout startups emerging from its BimaLab Accelerator Programme which has supported more than 135 startups in 28 countries but will also draw in new early-stage ventures poised to scale innovative insurance solutions.
Officials framed the new venture as a strategic response to the continent’s ongoing insurance challenges, where traditional models have struggled to meet the needs of underserved populations and small businesses, leaving communities vulnerable to climate and economic shocks.
In tandem with the fund launch, FSD Africa highlighted the adoption of a Regulatory Sandbox Eligibility Assessment Toolkit, a resource aimed at helping African insurance regulators evaluate and integrate emerging insurtech innovations within regulatory frameworks, potentially lowering barriers to market entry.
The announcement reflects a broader push to catalyse innovation and private investment in the insurtech sector, with the fund expected to play a major role in supporting startups positioned to transform insurance access and resilience across the continent.
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