As part of its commitment, the EIB has pledged an investment of $52.48 million into the Fund, which is managed by AFC Capital Partners (ACP), the asset management arm of AFC.

The ICRF has already garnered significant financial backing, including a $253 million commitment from the Green Climate Fund (GCF), marking GCF’s largest-ever equity investment in Africa.

Other key investors include the Nigeria Sovereign Investment Authority (NSIA) and two private African pension funds, demonstrating substantial institutional support both within the continent and on an international scale.

The Fund is designed to integrate climate resilience into all stages of infrastructure projects, from conceptualization and construction to operation.

By employing blended finance mechanisms, it aims to mitigate risks for private investors while incorporating innovative tools such as climate risk parametric insurance to safeguard against climate-related losses.

Additionally, the Fund will provide technical assistance to support countries in conducting climate risk assessments and implementing adaptation strategies, aligning with global initiatives such as the European Union’s Global Gateway and the United Nations’ Sustainable Development Goals (SDGs).

The EIB formalized its participation in the initiative at the Finance in Common Summit (FICS) in Cape Town, underlining the collaborative effort between the EIB, AFC, and other strategic partners.

EIB Vice-President Ambroise Fayolle highlighted the institution’s commitment to promoting private sector investment in climate-resilient infrastructure, particularly in regions most vulnerable to climate change.

“This partnership with the Africa Finance Corporation and the launch of ACP’s Infrastructure Climate Resilient Fund mark a critical step in Africa’s green and digital transition,” Fayolle stated.

“Beyond our initial capital commitment, our goal is to attract further investment, mitigate risks, and establish a precedent for best practices in climate finance.”

The ICRF is positioned to play a pivotal role in addressing climate adaptation challenges while fostering economic growth in Africa.

ACP’s investment strategy incorporates climate risk assessments covering both physical vulnerabilities and transition-related risks, ensuring that infrastructure assets are built to withstand changing climate conditions.

Through rigorous climate risk screenings, ACP aims to set a new industry benchmark for selecting and implementing effective adaptation solutions.

Samaila Zubairu, President and CEO of AFC, emphasized the Fund’s significance in bridging the climate financing gap in Africa.

“This initiative is critical for ensuring a climate-resilient future for Africa,” Zubairu noted.