Featured: Policy Corner
Investing in the economic determinants of a healthy democracy. As the US approaches the 250th birthday of the Declaration of Independence, multiple indicators show a weakening in the strength of American democracy in the past decade, with notable declines in 2025. The ratings and analyses generally consider the strength of institutions that undergird the rule of law, ensure free and fair elections, maintain checks and balances, and protect civil liberties and civil rights. But it is economic inequality that has fueled the political division and made it easier to exploit, argues Fran Seegull of the US Impact Investing Alliance. “Democracy extends beyond the voting booth and into our daily lives. It is tangibly connected to where we work, live, and how we participate in the economy,” Seegull writes in a guest post on ImpactAlpha. “America’s architects, from the revolutionaries and founders to the freedom riders and civil rights heroes, have fought for shared prosperity right alongside a government by and for the people.”
Dealflow: Impact insurance
Inclusive Insurtech Investment Fund raises $12 million to expand insurance adoption in underserved communities. The PTA Reinsurance Company, also known as Zep-Re, was set up in 1990 by the economic community Common Market for Eastern and Southern Africa, or COMESA to expand affordable insurance for underserved populations. It launched as a public-private partnership with support from Tanzania’s Public Service Social Security Fund, German development bank KfW, the Trade and Development Bank among others. With FSD Africa Investments, Zep-Re has invested $12 million in the first close of the Inclusive Insurtech Investment Fund, which was launched in Nairobi last year with a $30 million target. The blended finance fund will cut pre-seed to Series B checks of between $250,000 and around $1 million for insurtech startups in climate resilience, health, rural livelihoods, financial inclusion and small business insurance. “Impact and private capital are now investing in the same insurance technology pioneers,” said 3IF Ventures’ Anthony Chaillet and Mario Wilhelm. “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.”
Signals: Food Systems
A new generation of agricultural funds in Africa seeks impact – and investors. Fund managers in Africa are reaching deeper into agricultural value chains with smaller investments, more flexible capital and a focus on frontier markets. These high-impact managers, many of them raising their first funds, face steep challenges. A landscape analysis by Small Foundation and Financing for Agricultural SMEs in Africa, or FASA, analyzed 175 funds backing the continent’s small and growing agricultural businesses. “What we are seeing now is really exciting. A new generation of fund managers emerging, closer to the market, better positioned to take risks, and better positioned to reach the ‘missing middle,’” wrote FASA’s Anders Aabo in an introduction to the report. The fund managers, he said, “are deploying smaller tickets, working hands-on with companies, and building the pipeline of businesses that the rest of the market depends on.”