The leading accelerator and pre-seed impact fund for entrepreneurs in emerging markets, Catalyst Fund, a global, inclusive tech fund managed by BFA Global, has announced that FSD Africa has committed $3.5M to establish the Fund’s footprint in Africa and expand its operations there.
“At FSD Africa, we think that a strong, equitable, and accessible financial system is important to a sustainable future for Africa’s people and its environment,” said Juliet Munro, Director, Digital Economy. Particularly, we think that the financial sector can significantly contribute to the fight against climate vulnerability and that by leveraging the potential of fintech innovation, we can assist remove market obstacles to the development of urgently required climate resilience solutions. By funding and assisting entrepreneurs, our cooperation with Catalyst Fund will promote innovation while also influencing and growing the pool of available capital for such endeavors.
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“We are happy to welcome FSD Africa as an anchor investor of Catalyst Fund to enable our next phase of expansion,” stated Maelis Carraro, managing director of Catalyst Fund. Our primary mission of driving innovation that enhances the resilience and livelihoods of the world’s most vulnerable groups, particularly women, places the challenge of climate adaptation at the center of our work. As a woman-led fund, we take great pride in the fact that at least 40% of the founders in our portfolio will be female and at least 80% of them will be residents of the nation in which the company is based. We want to advance the overall innovation ecosystem while also improving the lives of vulnerable households and companies.
61 firms from emerging economies that Catalyst Fund has supported to date have collectively generated more than US$573 million in follow-on funding and served over 13.2 million low-income clients.
The next batch of entrepreneurs will offer finance products that strengthen underprivileged and climate-vulnerable populations’ resilience.
Solutions for resilience-building and climate adaptation can be found in fintech and insurtech, agtech, carbon financing, water management, and other critical areas.
By energizing investors, capacity-building networks, and corporate innovators to unlock cash, recruit talent, and share knowledge about fintech solutions suited to those communities’ needs, the accelerator will also keep constructing robust innovation ecosystems.