Cathay AfricInvest Innovation Fund I

The Cathay AfricInvest Innovation Fund I (CAIF I) is a pan-African fund that targets post-revenue, growth stage ventures that leverage recent technological advancements - including the mainstreaming of mobile connectivity and internet penetration- and innovative business models to provide Africa’s growing population with increased access to products and services. Target sectors include education, where e-learning technology could increase reach and provide access to educational material at lower costs, and agriculture, where, for example, technology could provide data to farmers to allow for better access to markets. Further sectors for investment include energy and clean technology, healthcare, financial services, and retail and distribution.

Many African countries face important socio-economic disparities with significant portions of their populations lacking access to finance, energy, and basic services. Innovative businesses offering technology-driven solutions are increasingly recognized as important drivers of economic growth and social impact. They will leapfrog existing delivery mechanisms and provide previously excluded populations access to many of these basic products and services. SIFEM’s investment of EUR 7 million in CAIF I will therefore support a response to Africa’s socio-economic challenges with innovative products and services. It will foster financial sector deepening, financial innovation, and support technological research and innovation as well as social inclusion.