FSD Africa Investments backs ARM-Harith fund
FSD Africa Investments is investing £10 million into ARM-Harith’s Climate and Transition Infrastructure Fund.
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FSD Africa Investments (FSDAi), the UK-backed specialist development finance investor, is investing £10 million (about $13.2 million) into ARM-Harith’s Climate and Transition Infrastructure Fund to unlock local institutional capital for climate infrastructure.
FSDAi’s investment introduces an innovative solution to allow Nigerian pension funds to address a longstanding challenge in infrastructure equity finance: the ability to invest while receiving early liquidity. By enabling predictable interim distributions during the early phases of investment, this facility directly addresses a key barrier that has historically deterred domestic institutional capital from entering the asset class.
In addition, 75% of the FSDAi facility will be provided in local currency – a first-of-its-kind approach specifically designed to mitigate the impact of foreign exchange volatility for pension funds. This structure is expected to unlock an additional £31 million in pension fund contributions – nearly five times the participation achieved in ARM-Harith’s first fund.
FSDAi’s chief investment officer, Anne-Marie Chidzero said: “We are thrilled to collaborate with ARM-Harith to showcase how riskbearing capital from a market-building investor like FSDAi can be strategically structured to unlock domestic institutional capital. This approach strengthens Africa's financial markets and facilitates capital allocation towards sustainable, green economic growth across the continent.”
ARM-Harith CEO, Rachel Moré-Oshodi added: “For too long, domestic pension funds have remained on the sidelines of infrastructure equity due to liquidity constraints and heightened perception of risk. We are proud to have collaborated with FSDAi to design a pioneering solution that reduces risk for pension funds while delivering both early liquidity and long-term capital growth. This is a global first – a groundbreaking private sector-led solution that could fundamentally change how infrastructure equity is financed – not just in Nigeria, but across Africa.”
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