In Africa, the fintech sector stands out as the most attractive. In 2022, Norfund decided to also position itself in this segment alongside strategic partners.

Norfund, a Norwegian state-owned investment fund, announced on Wednesday, July 3, a $20 million investment in a new fund by the British private equity firm Apis. Named Apis Growth Markets III, the fund will invest in high-growth, technology-focused financial services companies worldwide, with a particular emphasis on Africa and Asia.

"Apis’ expertise in payment solutions and embedded finance is profound. Seamless and cashless digital payments can significantly boost productivity and enhance digital inclusion, an area where Apis truly excels. In addition, we recognize the vital role of embedded finance in helping entrepreneurs and small businesses access the productive assets they need to thrive," said Kathy Chang, Investment Director at Norfund.

This investment comes at a time when funding for start-ups is declining globally. In Africa, funds raised by the continent's start-ups in the first half of this year fell by 56% compared to 2023, amounting to $530 million, according to data from Disrupt Africa. The scarcity of large deals over $100 million (funding winter) and the refocusing of investments by major global funds not primarily focused on Africa may explain this drop in funding.

Apis Growth Markets III plans to finance between 10 and 15 fintech start-ups. Amounts between $60 million and $70 million will be injected into various young companies for upcoming equity stakes.

Adoni Conrad Quenum