Lagos: AFC Capital Partners (ACP), the asset management arm of Africa Finance Corporation (AFC), has introduced the Infrastructure Climate-Resilient Fund Nigeria (ICRF Nigeria). This platform aims to mobilize domestic institutional capital for climate-resilient infrastructure projects in Nigeria and across Africa.
According to African Press Organization, the ICRF Nigeria is registered with the Securities and Exchange Commission (SEC) as a closed-end fund. Its goal is to channel investments from pension fund administrators, insurers, asset managers, and other Nigerian institutional investors into a diverse array of commercially viable infrastructure opportunities. This initiative is part of ACP’s broader US$750 million Infrastructure Climate-Resilient Fund, which seeks to fortify Africa’s infrastructure by integrating climate considerations throughout project lifecycles.
The fund has garnered support from global and African institutional investors, including a significant US$253 million first-loss commitment from the Green Climate Fund. Other participants include the European Investment Bank, Development Bank of Southern Africa, Cassa Depositi e Prestiti, the Nigeria Sovereign Investment Authority, and several African pension funds. ACP aims to mobilize up to US$3.7 billion and develop 10 to 12 infrastructure projects across the continent.
Samaila Zubairu, President and CEO of AFC, highlighted Africa’s abundant domestic resources, noting that ICRF Nigeria provides a channel for Nigerian institutional investors to engage in climate-resilient infrastructure projects, fostering sustainable growth. Ayaan Adam, CEO of ACP, emphasized the fund’s role in connecting institutional capital with infrastructure expertise and blended finance to address both financing needs and climate risks.
The fund employs concessional and commercial capital to overcome investment barriers in climate adaptation. Through blended finance and de-risking strategies, it integrates climate resilience into infrastructure, unlocking private capital for challenging projects. The fund targets sectors crucial to Africa’s economic transformation, including renewable energy, transport, digital infrastructure, and industrial development, with each investment undergoing rigorous climate risk assessment.
The Green Climate Fund’s contribution of first-loss capital and technical assistance for climate risk assessment plays a pivotal role in de-risking investments and attracting additional institutional capital.