Announced on October 13 at the Carbon Markets Africa Summit in Kigali, Rwanda, the initiative aims to help projects secure financing before they generate steady revenue.

The fund is seeking a $20 million first close in 2027, supported by a cornerstone commitment of approximately $6.6 million from FSDAi.

London-based environmental investment manager Finance Earth will manage the planned closed-end debt fund. The $100 million represents its fundraising target rather than capital already raised.

Its financing model addresses the long wait between project development and commercial income.

According to the fund, nature-based carbon projects often take three to seven years after implementation begins to earn their first revenue, creating a need for capital with repayment terms suited to that timeline.

Africa Nature plans to combine repayable financing with technical support to help developers progress toward reliable income.

Initial investments will focus on carbon projects involving reforestation, agricultural land management, mangrove restoration and assisted natural regeneration.

Support will cover project preparation, commercial pilots and implementation, helping developers demonstrate delivery and secure longer-term buyers for carbon credits.

“Catalytic capital works hardest when it unlocks markets that would otherwise remain out of reach,” said Anne-Marie Chidzero, chief investment officer at FSD Africa Investments.

She said FSDAi’s commitment aims to reduce investment risks and attract institutional and local investors into nature projects.

The initiative builds on FSD Africa’s Carbon Accelerator Programme for the Environment, delivered with Finance Earth.

The program has assessed more than 300 projects, providing a foundation for identifying and preparing potential investments.

The fund’s broader targets include protecting or regenerating 4.5 million hectares and removing or avoiding more than 100 million metric tons of CO₂ equivalent over project lifetimes.

Community participation will form part of investment eligibility. The fund requires affected communities’ free, prior and informed consent, independently audited benefit-sharing agreements and clear land rights.

These requirements connect project financing with how carbon income is distributed and how local people participate in decisions about the land involved.

Africa Nature also plans to work with African banks, pension funds and insurers to strengthen their ability to assess and finance nature-based projects.

Building a record of projects that reach verified delivery and dependable revenue could give these institutions a stronger basis for investment decisions, supporting greater African participation in financing the continent’s natural assets.