The African Venture Philanthropy Alliance (AVPA) has unveiled an ambitious initiative to address the pressing need for risk capital in Africa’s social investment landscape. The announcement took place at the Global Africa Forum on the sidelines of the 79th session of the United Nations General Assembly.
AVPA Catalytic Pooled Fund seeks to accelerate social investment in Africa by mobilizing $200 million in catalytic capital over five years. Sourced from African and global philanthropies, as well as government donors, this capital aims to attract five to ten times its value in private investments, potentially unlocking $2 billion.
The initiative focuses on bridging Africa’s financing gap through innovative mechanisms, scaling proven high-impact models, and drawing in private capital for social projects. A significant aspect is targeting $1.8 trillion in dormant domestic private capital held by Insurance Companies, pension funds, and dormant bank accounts, highlighting the untapped financial resources available for transformative impact.
This fund, supported by major partners such as the Children’s Investment Fund Foundation (CIFF) and Prosper Africa, seeks to close the financing gap that hampers progress toward achieving the United Nations Sustainable Development Goals (SDGs).
AVPA’s CEO, Dr. Frank Aswani, emphasized the necessity of risk capital, noting, “Africa is on course to meet only 2 of the 17 Sustainable Development Goals (SDGs) by 2030 and this is happening against the triple challenge of declining aid, rising public debt and a growing and young population,” he said.
“In order to close the $200 billion annual SDG financing gap and drive Africa’s sustainable growth, we need to crowd in more private capital into social investments and for that to happen, we need catalytic capital to not only de-risk high impact social investments but also to unlock new markets, test innovation and scale high impact concepts.” he added.
AVPA Catalytic Pooled Fund is designed to act as a bridge, blending philanthropic capital with private investments to amplify its impact. By deploying this hybrid approach, the fund will target projects across health, education, clean energy, and other areas crucial for sustainable development. AVPA’s strategy includes incentivizing private sector participation while mitigating risks through strategic collaborations.
“Africa’s future growth hinges on harnessing its untapped domestic capital. By providing the right blend of catalytic capital and strategic enablers, we can close the bankability gap and de-risk high-impact projects. This initiative goes beyond financing it’s about building a sustainable, self-sustaining ecosystem that drives long-term, inclusive growth across the continent while improving health, social, economic and climate outcomes.” Faustina Fynn-Nyame, Executive Director Africa, at the Children’s Investment Fund Foundation.
The launch underscores the growing importance of collective efforts to spur economic and social development. With Africa home to some of the world’s fastest-growing economies and pressing challenges, the fund has garnered widespread support from global stakeholders, including development finance institutions, impact investors, and philanthropists.
“We are pleased to launch the Catalytic Pooled Fund in an effort to mobilize Africa’s domestic capital and with our support, U.S. capital, for Africa’s economic and social development.,” said British A. Robinson, Coordinator of Prosper Africa. “By working together, in mobilizing resources and unlocking private capital to drive sustainable development across Africa.”
The initiative aims to bridge the social financing gap by providing catalytic capital and offering technical assistance to high-impact investment opportunities. By addressing perceived risks and demonstrating the feasibility of development solutions, it seeks to boost investor confidence and activity.
Additionally, the fund will attract domestic, U.S., and international private capital, enhancing Africa’s social finance ecosystem. Through blended investments, it aims to establish a sustainable pathway for financing social projects, strengthening the continent’s social finance infrastructure.
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