New Investments

Accion Launches $152.5 Million Fund to Drive Digital Transformation for Financial Inclusion in Africa

| Article

Accion, a non-profit focused on financial inclusion, has announced the launch of the Accion Digital Transformation Fund, a $152.5 million initiative designed to empower traditional financial institutions in serving underserved small businesses.

The fund targets microfinance banks and similar institutions in Africa, South and Southeast Asia, and Latin America.

By providing growth capital and strategic support, the initiative aims to bridge the gap between traditional financial institutions and digitally underserved populations.

“We’ve seen firsthand how many people, especially in rural areas, lack access to essential financial services,” said Abhishek Agrawal, Managing Partner at the Accion Digital Transformation Fund.

“This fund addresses two key challenges: building trust in digital finance among rural customers and equipping traditional institutions with the knowledge and resources to effectively engage them.”

The fund prioritizes investments in institutions serving micro, small, and medium enterprises (MSMEs).

Preferred targets include traditional microfinance institutions, affordable housing companies, and those transitioning to full-fledged banks.

Investments will range from $12 million to $15 million, with additional contributions from the fund’s limited partners, which include prominent organizations like British International Investment (BII) and Mastercard.

This initiative marks a strategic shift for Accion. Previously, the Accion Venture Lab focused on early-stage fintech startups.

The new fund, however, will invest directly in established financial institutions to accelerate their digital transformation journey.

“Our goal is to empower existing institutions to leverage technology and reach a wider customer base,” explained Agrawal. “This approach complements our existing work with fintech startups, fostering a more inclusive financial ecosystem overall.”

The Accion Digital Transformation Fund is managed by Accion Impact Management, which also oversees the Accion Venture Lab.

Accion Emerge, another Accion initiative, continues to support growth-stage companies in embedded finance, agritech, and the future of work.

Related Articles

Register Now

Empower Africa Times Newsletter

Share :

“We are delighted to partner with ISA to support the development of solar energy in Africa,” said Alain Ebobissé, CEO of Africa50. “This partnership will help to accelerate the deployment of solar energy in Africa and improve the lives of millions of Africans,” he added.

You may also like...

© 2021 Empower Africa. All rights reserved.