Accion, Quona Capital extend $141million for fintech innovations to Sub Saharan Africa
The fund will follow fintech innovations aimed at enhancing access to financial servicesAccion and Quona Capital has raised $141 million to stimulate development of fintech innovations that will make formal financial services accessible to the unbanked in Sub Saharan Africa. The fund which comes under the newly launched Accion Frontier Inclusion Fund (AFIF) was raised from various participating funders including JP Morgan Chase & Co., MasterCard, AXA Impact Fund, Prudential Financial and MetLife respectively. Through AFIF, funds will be channelled to support fintech innovations in the areas of alternative credit and payments, tech in the insurance industry and funding for small businesses. The fund which is the first global fund for the underserved will cover Sub Saharan Africa and other developing continents with a focus on Kenya, South Africa, Nigeria, Mexico, Brazil, Philippines and Peru. Monica Brand Engel, a partner at Quona Capital while speaking about the newly launched initiative said, "this is the first time institutional capital is coming together and targeting emerging markets. We want to show that these markets have the potential to have the outsize returns we've seen in western markets." Quona Capital is a US-based investment fund designed to make financial products and services accessible and affordable to consumers in emerging markets across the world while Accion is a nonprofit organization that facilitates microfinance institutions in their bid to provide financial services to low-income clients.