Tenders are invited for Mobilising Insurance Capital for Africas Green Investments (Mica) Designing New Investment Products and Structures Insurance companies are among the most influential institutional investors, managing large pools of capital across diverse asset classes. Their financial strength positions them as critical enablers of economic growth and long-term development in countries where they operate. In Africa, insurance company assets under management (AUM) represent a substantial and growing share of domestic savings. According to the World Banks Global Financial Development Database, insurance assets across Sub-Saharan Africa averaged 1415% of GDP in recent years, though this varies widely by country. This financial strength positions them uniquely to support and accelerate sustainable development, particularly through investments in climate-resilient and green assets. Currently, a large share of insurance capital in Africa is concentrated in traditional government securities, such as bonds and treasury bills. These instruments are preferred for their low risk, predictable returns, and strong alignment with insurers need to meet long-term liabilities. While this conservative approach safeguards financial stability, it limits the sectors ability to diversify into other asset classes, especially those that can deliver measurable environmental and social impact. As Africa confronts escalating climate and development challenges, the opportunity to redirect insurance capital towards green and sustainable projects has never been more urgent. The sectors substantial financial resources could be leveraged to advance investments that strengthen climate resilience, promote renewable energy, enhance sustainable agriculture, and support other critical low-carbon initiatives. By developing innovative green investment products, fostering stronger partnerships with development finance institutions, and aligning investment strategies with sustainability objectives, insurers can unlock new growth opportunities. Mobilising insurance capital in this way would channel both domestic and international funding into transformative projects helping to build a greener, more resilient, and more prosperous future for Africa. Mobilising Insurance Capital for Africa (MICA) Programme will design innovative investment products that channel African insurance capital into climate-resilient and green projects. Through targeted research, market analysis, and stakeholder engagement, we will identify priority opportunities and develop fit-forpurpose investment structures that align with insurers risk-return profiles while delivering measurable environmental and social impact. The project will validate the priority areas for deployment, engage with key stakeholders across the insurance and investment ecosystem, and initiate the design of investment solutions that can unlock large-scale capital flows into high-impact, sustainable projects The programme will deliver two core outputs: first, comprehensive research, market analysis, and stakeholder engagement to identify viable green investment opportunities for insurance capital, assess barriers to entry, and prioritize thematic areas; and second, the design of innovative investment products and structures that align with insurers risk-return profiles while generating measurable climate and social impact. This project will lay the groundwork for subsequent implementation and scaling, with expected impact measured in mobilised capital, climate assets developed and financed, avoided emissions, and strengthened resilience FSD Africa is therefore seeking the services of a consultant or consulting firms to conduct targeted research, market engagement, and consultations to design specific de-risking interventions, build a strong local partner ecosystem and validating priority areas for investment. The selected countries are South Africa, Nigeria, Kenya, Zambia, Ghana, Namibia, Mauritius, Rwanda, Morocco, Uganda. The consultant will be expected to work closely with FSD Africas Principal, Adaptation & Resilience. 2. Background Financial Sector Deepening Africa (FSD Africa) FSD Africa is a specialist development agency working to reduce poverty by strengthening financial markets across sub-Saharan Africa. Based in Nairobi, FSD Africas team of financial sector experts work alongside governments, business leaders, regulators, and policy makers to design and build ambitious programmes that make financial markets work better for everyone. Established in 2012, FSD Africa is incorporated as a non-profit company limited by guarantee in Kenya. It is funded by UK aid from the UK government. 3. Objectives and Scope 3.1. Objective The overall objective of this assignment is to design innovative investment solutions and de-risking instruments that mobilise African insurance capital into climate-resilient and green sectors. Specifically, the consultancy will: Conduct research and stakeholder engagement to assess appetite, barriers, and opportunities for insurers participation in green finance. Develop tailored de-risking instruments that mitigate barriers and unlock insurance capital for priority sectors. Produce an implementation roadmap for scaling the mobilisation of insurance capital into sustainable investments. 3.2. Scope of work The consultant(s) will undertake the following activities: Phase I: Research, Analysis, and Stakeholder Engagement Conduct secondary research and data analysis on investor landscape, pipeline readiness, and barriers to investment. Engage insurers, regulators, DFIs, project developers, and other institutional investors through interviews, focus groups, and surveys. Map green project pipelines across selected countries (South Africa, Nigeria, Kenya, Zambia, Ghana, Namibia, Mauritius, Rwanda, Morocco, Uganda). Develop a risk matrix highlighting project-level and systemic risks relevant to insurers. Organise workshops/webinars to disseminate findings and secure stakeholder buy-in. Phase II: Design of De-risking Instrument Develop and assess de-risking options (guarantees, blended finance vehicles, risk-sharing mechanisms). Undertake scenario testing and financial modelling to assess commercial viability and scalability. Produce feasibility study and detailed instrument design options (governance, operational model, strategic focus). Develop a tailored risk taxonomy for climate and green investments for insurers. Draft implementation roadmap outlining sequencing, pilot design, and pathways to scale. Develop a stakeholder engagement strategy to secure buy-in from insurers, regulators, and DFIs. Deliverables The deliverables under this contract are as follows: a) Inception Report: Outline the approach, methodology, and work plan. b) Phase I Deliverables: o Consolidated report on investor landscape, pipeline readiness, and barriers. o Interview/engagement database and stakeholder consultation notes. o Risk matrix for insurance participation in green projects. o Workshop/webinar proceedings and consensus reports. c) Phase II Deliverables: o Feasibility study on design options. o Detailed instrument design report (governance, operational, strategic model). o Risk taxonomy tailored to insurers and institutional investors. o Implementation roadmap for pilot and scaling. Timelines The project shall be implemented under an 8-month consultancy contract as per the deliverables above and the workplan set. Tender Link : https://www.developmentaid.org/#!/tenders/search
