ARM-Harith Secures $12.5 Million Investment from FSD Africa to Boost Climate Infrastructure in Nigeria

New Investments

ARM-Harith Secures $12.5 Million Investment from FSD Africa to Boost Climate Infrastructure in Nigeria

April 16, 2025

| Article

FSD Africa Investments (FSDAi), a UK-backed development finance investor, has announced a $12.5 million investment into the ARM-Harith Climate and Transition Infrastructure Fund (ACT Fund) to attract more local capital into climate-related infrastructure projects across Nigeria.

The ACT Fund, managed by ARM-Harith Infrastructure Investment Limited, focuses on sustainable investments in energy, transport, water, and digital infrastructure.

This latest funding move seeks to make it easier for Nigerian pension funds to invest in infrastructure, which has long been seen as high-risk and lacking in short-term returns.

A key feature of the FSDAi investment is a new structure that allows pension funds to earn regular returns early in the investment cycle—something that has been a barrier for many local investors.

By providing liquidity early on, the model reduces the perceived risk and encourages participation from Nigerian institutional investors.

In a significant development, 75% of FSDAi’s contribution will be in Nigerian naira.

This local currency financing model helps protect investors from exchange rate fluctuations, which have often discouraged long-term investment in infrastructure.

This structure is expected to bring in an extra $38.75 million from pension funds, nearly five times what was raised for ARM-Harith’s previous fund.

FSDAi’s Chief Investment Officer, Anne-Marie Chidzero, said the partnership with ARM-Harith shows how strategic investments can attract more local funding to support Africa’s shift to a green economy.

She highlighted the importance of risk-bearing capital in building stronger financial systems and driving long-term sustainability.

ARM-Harith CEO Rachel Moré-Oshodi described the investment as a “game-changer” for infrastructure finance in Africa.

She noted that the model could transform how pension funds participate in large-scale projects, not only in Nigeria but across the continent.

The investment also aligns with the UK’s broader commitment to supporting Nigeria’s financial sector.

Speaking on the announcement, British Deputy High Commissioner Jonny Baxter emphasized the role of local currency financing in reducing economic vulnerability and promoting long-term development.

The initiative supports at least four of the United Nations Sustainable Development Goals and is expected to generate or sustain around 3,000 green jobs, underscoring its potential to deliver both economic and environmental impact.

“We are delighted to partner with ISA to support the development of solar energy in Africa,” said Alain Ebobissé, CEO of Africa50. “This partnership will help to accelerate the deployment of solar energy in Africa and improve the lives of millions of Africans,” he added.

You may also like...

SunCulture Gets Backing From Investment Energy Platform Nithio to Drive Solar Irrigation, Farming Innovations Across Africa

Nithio, a leading energy investment platform, has invested in SunCulture, a Kenyan solar irrigation company.

September 27, 2023

Wetility Secures $27.8 Million Investment to Expand Clean Energy Access Across South Africa

South African solar-as-a-service company Wetility has raised ZAR500 million (US$27.8 million) through a structured capital partnership with Jaltech to boost access to clean, affordable energy across the country.

June 19, 2025

Tanzanian Fintech NALA Secures $40 Million in Series A Funding to Expand Services

Tanzanian fintech startup NALA has secured $40 million in a Series A funding round, one of the largest of its kind in Africa according to TechCrunch.

July 10, 2024

New Investments