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

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

April 16, 2025

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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.

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