AIIM’s African Transition Acceleration Fund secures $50m
The fund is targeting $200 million and will invest across power, transport and green fuels.
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FSD Africa Investments (FSDAi) and Allied Climate Partners (ACP) have announced their combined anchor commitment of $50 million to the first close of the African Transition Acceleration Fund (ATAF), a vehicle managed by African Infrastructure Investment Managers (AIIM).
The fund, which is targeting $200 million, is designed to accelerate investment in Africa’s energy transition. ACP and FSDAi are joined by the International Finance Corporation’s Frontier Opportunities Fund, and several senior equity co-investors including the IFC, KfW, Proparco, and other private investors.
“Africa’s energy transition will not be financed by waiting for projects to become safe enough for conventional capital,” said Anne-Marie Chidzero, FSDAi’s chief investment officer. “Someone has to go first. This partnership with ACP – and our anchor commitment to ATAF – is us going first.”
Across Africa, most infrastructure funds are not structured to commit significant capital to early-stage project development. As a result, promising opportunities stall before they can launch, scale, and reach bankability. ATAF was purposefully created through a structured market assessment and selection process to focus capital on this gap, and provide support to economically viable platforms and companies at the earliest and most critical stages of project development and company growth.
The fund seeks to invest in early-stage developers and companies looking to advance climate infrastructure projects toward bankability and scale across three core energy transition themes:
Clean electrons such as on-grid and off-grid renewables, energy efficiency, and transmission;
Sustainable transport such as electric vehicles and low-carbon transport systems; and
Clean molecules such as green ammonia, fertilisers, and biofuels.
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