Joanna Govender, CEO of EPF Tech Fund.

Venture capital firm EPF Tech Fund has announced a new investment in Acorn Fintech, which has a strong presence in the insurance sector.

The South African based multimillion-rand start-up fund, which launched last year, invests in pre-seed-stage companies on the continent.

EPF Tech Fund identifies and rewards young, high-potential, innovative entrepreneurs to spur on economic development in the country using technology.

Current beneficiaries include start-ups such as Agricode, Digital Pulse, What the Hack, MicroApps, Tech Swat and Makwarela Campus 123.

Joanna Govender, CEO of EPF Tech Fund, announced the new investment in Acorn Fintech on Tuesday.

Acorn Fintech focuses on risk identification, evaluation and mitigation across various market sectors, with insurance as a prime target.

Govender said: “Acorn Fintech is paving the way for the future of insurance and fintech with its cutting-edge technology and customer-centric mindset. The company has developed a comprehensive suite of solutions, integrating insurance in financial services, empowering individuals and businesses to manage their risk and finances.

“One of the key strengths of Acorn Fintech is its ability to leverage data analytics and artificial intelligence to drive insights and deliver personalised experiences. Through technology, Acorn Fintech is reshaping traditional insurance models, making them more accessible, efficient, and tailored to individual needs.”

The EPF Tech Fund investment comes as African fintech is becoming visible as a hotbed for investment and the momentum is likely to increase.

South Africa is one of the four key markets (the others being Egypt, Kenya and Nigeria) that are leading Africa’s fintech growth, according to a new report released by Boston Consulting Group and QED Investors.

The Global Fintech 2023: Reimagining the Future of Finance report forecasts that Africa will be the fastest growing region and projects a fintech revenue compound annual growth rate of 32% until 2030.

For Govender, the investment in Acorn Fintech appealed to EPF Tech Fund because the company wants to “reshape the landscape of insurance and fintech”, making it more inclusive.

She added: “With this partnership, we envision a future where insurance and fintech converge seamlessly, enabling individuals and businesses to navigate financial risks with confidence and unlock new opportunities.”