Pan-African Investor Renew Capital Makes Its First Ghana Move, Backs Fintech Affinity
Renew Capital, a firm specializing in impact investments across Africa, has announced its debut investment in Ghana.
April 10, 2024
New Investments
ARM-Harith Secures $12.5 Million Investment from FSD Africa to Boost Climate Infrastructure in Nigeria
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.
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.
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.
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.
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.
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.
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.
Share :
“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...
Accion Launches $152.5 Million Fund to Drive Digital Transformation for Financial Inclusion in Africa
Accion, a non-profit focused on financial inclusion, has announced the launch of the Accion Digital Transformation Fund, a $152.5 million initiative designed to empower traditional financial institutions in serving underserved small businesses.
May 16, 2024
EIB Global Invests €25 Million in Amethis Fund III to Empower African Businesses
The European Investment Bank’s (EIB) global development arm, EIB Global, has committed €25 million to Amethis Fund III, a pan-African private equity fund.
June 10, 2024