Infrastructure fund receives DBSA commitment
Managed by AFC Capital Partners, the vehicle is building a 10 to 12-project portfolio.
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Africa Finance Corporation (AFC) has announced a commitment from the Development Bank of Southern Africa (DBSA) to its $750 million Infrastructure Climate Resilient Fund (ICRF).
Designed to address the systemic risks posed by climate change to Africa’s infrastructure, the fund targets investment into renewable energy, transport and logistics, digital infrastructure, and industrial development – sectors central to enabling low-carbon economic growth across Africa while strengthening the resilience of the continent’s economic systems. The fund is building a diversified portfolio of 10 to 12 infrastructure projects across the continent.
Managed by AFC Capital Partners, ICRF has already attracted participation from global and African institutional investors, including a $253 million commitment from the Green Climate Fund, alongside the European Investment Bank, the Nigeria Sovereign Investment Authority, and a host of African pension funds.
Samaila Zubairu, president and CEO of AFC said: “ICRF is our response to a defining challenge – ensuring Africa’s infrastructure is built to withstand the growing impacts of climate change. With the continent losing an estimated 2% to 5% of GDP annually to climate shocks and adaptation needs reaching up to $50 billion each year, the urgency is clear. We are therefore pleased to welcome DBSA as a key partner for the fund. Their participation reflects strong African institutional alignment and marks a significant milestone in a partnership we look forward to deepening in the years ahead.”
Boitumelo Mosako, chief executive officer of DBSA commented: “Africa does not have the luxury of waiting. Climate shocks are outpacing adaptation finance, and vulnerable communities continue to bear the greatest burden. This partnership with the Africa Finance Corporation sends a clear signal that development finance institutions are pooling their mandates, capital, and risk appetite to achieve what neither institution can accomplish alone.”
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