New Investments

FSD Africa Investments (FSDAi) Announces $19.5 Million Investment in African Climate Projects

FSD Africa Investments (FSDAi), the investment arm of FSD Africa, has made a significant financial commitment of $19.5 million towards climate adaptation and climate-aligned infrastructure projects across Africa.

This announcement marks a significant stride towards bolstering the continent’s resilience against climate change while supporting innovative financing mechanisms for sustainable development.

Strategic Investments to Foster Sustainability

FSDAi’s investments in Acre Impact Capital’s Export Finance Fund I, Catalyst Fund, and Camco’s Spark Energy Services reflect their strategic approach to collaborate with local asset managers and venture builders.

The primary objective is to inject much-needed funding into climate-smart projects that often struggle to secure financial backing.

Breaking Down the Investment:

$12 Million in Acre Impact Capital’s Export Finance Fund I

This fund addresses the challenge of obtaining commercial debt financing for sustainable infrastructure projects backed by official Export Credit Agencies (ECAs).

FSDAi’s investment is expected to facilitate the flow of ECA finance for social and green infrastructure, ultimately unlocking $67 million in funding.

This initiative is projected to improve access to essential services for over 500,000 people and create more than 2,000 jobs.

$4.5 Million in Catalyst Fund

The Catalyst Fund is a pre-seed venture capital fund and accelerator focused on tech start-ups dedicated to enhancing climate resilience in Africa.

The investment aims to demonstrate the viability of venture building as a model to accelerate the growth of climate-smart businesses in Africa, with a target of creating or advancing 40 such businesses and assisting 5 million individuals and households in adapting to climate change.

$3 Million in Spark Energy Services (Spark)

Managed by climate and impact fund manager Camco, Spark Energy Services seeks to provide financing to captive solar and energy efficiency developers in Sub-Saharan Africa.

This platform aims to address the financing challenges faced by smaller-scale projects by aggregating them to reduce transaction costs and diversify risk.

FSDAi’s investment in Spark is set to support a just transition, reducing greenhouse gas emissions by 0.61 million metric tons of carbon dioxide equivalent (MtCO2e), creating 1,400 jobs, and providing affordable, reliable, and clean power to commercial and industrial SMEs.

FSDAi’s Unique Approach

FSDAi specializes in investments that support innovative financial instruments, facilities, and intermediaries, accelerating finance’s role in Africa’s green economic growth.

It is funded through UK International Development from the Foreign, Commonwealth & Development Office (FCDO).

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