New York, New York – September 25, 2024 – The Children’s Investment Fund Foundation (CIFF) in partnership with Prosper Africa, and in support of the African Venture Philanthropy Alliance (AVPA) is proud to announce the Catalytic Pooled Fund (CPF), a transformative collective designed to mobilize catalytic capital in Africa to drive private sector investment in social development at scale. The announcement took place at the Global Africa Forum on the sidelines of the 79th session of the United Nations General Assembly.

The CPF aims to drive social investment by pooling $200 million (USD) of catalytic capital over the next five years, sourced from African and global philanthropies, as well as government donors. This capital is expected to leverage five to ten times its value in private capital – potentially unlocking up to $2 Billion. The initiative will play a critical role in closing Africa’s financing gap by testing the use of innovative financing mechanisms as well as scaling those with proven track records for delivering high impact and  crowding in private capital into social investments. Notably, the fund aims to tap into the $1.8 trillion of dormant domestic private capital held by insurance companies, pension funds and dormant bank accounts.

“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,” said AVPA’s CEO, Dr. Frank Aswani. “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.

By mobilizing private capital at scale, this initiative seeks to create sustainable impact across Africa. The collective will initially prioritize four key sectors for Africa’s sustainable economic growth: agribusiness; education; healthcare; and renewable energy. It will also address five cross-cutting development themes, such as: inclusive supply chains; climate change; women’s economic empowerment; youth empowerment; and large-scale job creation.

“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.

“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.”

In addition to providing catalytic capital and closing the social financing gap, the initiative will offer technical assistance to high-impact investment opportunities, spurring investor activity by addressing perceived risks and proving the viability of development solutions. The fund will further attract domestic, U.S., and international private capital further strengthening Africa’s social finance architecture by blending investments to create a sustainable social financing pathway.