3IF Ventures, an impact-focused venture capital firm investing in insurance technology businesses across Africa, has announced the first close of its Inclusive Insurance Investment Fund at USD 12 million.

The fund, which is focused exclusively on Africa’s insurance start-up market, has secured backing from FSD Africa Investments (FSDAi) and ZEP-RE (PTA Reinsurance Company), which are serving as anchor investors. According to 3IF Ventures, the fund will provide equity financing to early-stage companies from pre-seed through to Series B stages.

The company said the fund has been launched in response to Africa’s significant insurance protection gap, which continues to limit financial resilience for individuals and businesses across the continent. 3IF Ventures noted that low levels of awareness, accessibility and affordability remain key barriers to insurance uptake, resulting in more than one billion people lacking insurance cover.

Through the fund, 3IF Ventures intends to invest in technology-enabled insurance businesses operating within four core sectors: climate and disaster resilience, agriculture and rural livelihoods, digital health and wellbeing, and SME and asset protection. The company is targeting a final fund size of USD 30 million and expects to build a portfolio of approximately 15 to 20 companies. A technical assistance facility equivalent to around 20 per cent of total fund commitments will also be established to support portfolio businesses.

According to 3IF Ventures, the fund has been structured as a blended finance vehicle, incorporating a catalytic junior capital tranche designed to encourage greater participation from private investors. The company expects the fund to contribute to a range of social and economic outcomes during its investment period, including the issuance of more than 5.9 million new insurance policies, improved financial resilience for over 3.5 million households and SMEs, and the creation, retention or support of more than 1.7 million jobs.

Commenting on the first close, Anthony Chaillet and Dr Mario Wilhelm, General Partners at 3IF Ventures, said: “Reaching First Close with FSD Africa Investments and ZEP-RE on the same cap table is a market signal: impact and private capital are now investing in the same insurance technology pioneers.

“Africa’s protection gap is the most under-served commercial opportunity of the decade, closing it requires patient capital, local risk capacity and industry-grade portfolio support, working in concert. With a pre-qualified pipeline of fifteen insurance ventures across ten African markets, we are ready to deploy capital and look forward to engaging with strategic private and public partners as we enter the next stage of our growth.”

Anne-Marie Chidzero, Chief Investment Officer at FSD Africa Investments, added: “FSDAi’s investment in 3IF Ventures reflects our conviction that the insurtech sector is ready to scale – built on a pipeline of 135 early-stage businesses supported through BimaLab. As the first investment vehicle dedicated to inclusive insurance in Africa, 3IF Ventures brings institutional rigour to a segment that has long lacked it. This first close proves that when sector expertise, the right capital structure and the right partners align, the protection gap becomes an investable proposition.”

Hope Murera, Managing Director and Group Chief Executive Officer of ZEP-RE, said the organisation views the fund as an opportunity to support the development of innovative insurance solutions across Africa through collaboration between public, private and development-sector stakeholders.

She stated: “The fund aligns with our mission to deliver sustainable and innovative re/insurance solutions through collaboration with private, public and development sector partners to close the protection gap and promote economic growth. The Fund will assist in bringing together like-minded partners and capital providers to support technology enabled insurance businesses that help in closing the protection gap across Africa.

“Beyond the capital injection, ZEP-RE will offer further support to the investee companies through its technical experience in the re/insurance ecosystem such as product design and leverage off its existing networks among primary insurers and regulators to provide underwriting capacity and an enabling regulatory environment for investees to achieve shared success across the continent.”