First investment in groundbreaking strategic partnership to accelerate clean infrastructure projects and business in Africa
Nairobi, Kenya, March 12, 2026 /PRNewswire/ — FSD Africa Investments (FSDAi) and Allied Climate Partners (ACP) have jointly announced an anchor commitment totaling $50 million in facilitation capital to first close of the Africa Transition Acceleration Fund (ATAF), a facilitation vehicle managed by the African Infrastructure Investment Management Company (AIIM). The fund has a target of $200 million and aims to accelerate investment in Africa’s energy transition, revitalize the economy and create sustainable jobs. ACP and FSDAi are joined by the International Finance Corporation’s (IFC) Frontier Opportunities Fund. Multiple senior equity co-investors including IFC, KfW, Proparco and other private investors.
Photo provided by: AIIM
FSDAi Chief Investment Officer Anne-Marie Chidozero said: “We cannot fund Africa’s energy transition by simply waiting for projects to be safe enough for traditional capital.” “Someone has to act first. Our core commitment to this partnership with ACP, and to ATAF, is that we act 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 achieve bankability. ATAF was purposefully established through a structured market evaluation and selection process to focus capital on this gap and provide economically viable platforms and support to companies during the earliest and most critical stages of project development and company growth.
FSDAi and ACP aim to work with partners to bridge this gap by locking in funds with catalytic capital. The fund seeks to invest in early-stage developers and companies looking to advance climate infrastructure projects to finance and scale across three key energy transition themes:
Clean electronics such as on-grid and off-grid renewable energy, energy efficiency and power transmission Sustainable transportation such as electric vehicles and low carbon transport systems Clean molecules such as green ammonia, fertilizers and biofuels
With a pan-African strategy, ATAF’s investments will focus on accelerating projects, attracting and strengthening management teams, and building platforms that can grow and attract commercial capital. The Fund aims to generate meaningful environmental, economic and social benefits, including tens of thousands of green jobs, reduced emissions and expanded access to clean electricity, green fuels and low-carbon transportation.
This investment builds on the partnership established in 2024 between FSDAi and ACP, bringing together two mission-aligned complementary investment organizations. FSDAi, supported by the UK Foreign and Commonwealth Office (FCDO), provides patient risk-taking capital and deep expertise in African financial market development. ACP brings experience building and anchoring junior equity pro-climate investment funds across emerging markets to leverage philanthropic capital and promote sustainable development and positive climate outcomes. Together, FSDAi and ACP are supporting ATAF to accelerate Africa’s energy transition, send market signals and demonstrate the model for more investors to follow.
“ATAF is a testament to the power of purposeful partnerships,” said Ahmed Saeed, CEO of Allied Climate Partners. “Together with FSDAi and others, we will help ATAF foster new markets and accelerate transformative infrastructure platforms and enterprises that can create jobs, revitalize economies, and strengthen communities across Africa at risk of devastating impacts from global change.”
ATAF will be managed by AIIM, one of Africa’s most experienced infrastructure investment managers with over 20 years of experience investing in renewable energy, transport and digital infrastructure in Africa. AIIM’s team of more than 40 locally based investment professionals brings the execution capabilities and domain depth required for early-stage energy transition investments. ATAF will be led by Lisa Pinsley, a veteran investor with over 18 years of experience investing in energy across Africa.
ATAF is the first investment in the FSDAi-ACP strategic partnership and complements FSDAi’s extensive portfolio of investments in Africa’s green growth, including InfraCredit Nigeria, Acre Impact Fund, African Local Currency Bond Fund (ALCB Fund), and ARM-Harris Africa Climate Change (ACT) Fund. Through these efforts, FSDAi’s consistent objective is to attract private capital and establish new financing routes for energy and climate change in Africa.
ATAF is ACP’s first catalytic investment in Africa. ACP also supports SEACEF II (managed by Clime Capital) and Green Investments Partnership (managed by Pentagreen) in Southeast Asia, and the Caribbean Community Resilience Fund (managed by Sygnus Capital) in the Caribbean.
For media inquiries, please contact us below.
FSD Africa Investment:
Joyce Waihiga
communications manager
(email protected)
Climate Alliance Partners:
Shayna Burglas
fellow
(email protected)
About FSD Africa Investments
FSD Africa Investments (FSDAi) is a specialist financial sector investor established by FSD Africa and the UK Foreign and Commonwealth Office (FCDO) to strengthen and deepen Africa’s financial markets. We fill critical funding gaps by patiently and risk-taking capital invested in new financial products, facilities and intermediaries. Our strategic investments take early risks, test new models, and catalyze capital from others to gradually transition the financial sector to fund the resilience and growth of Africa’s economies. To date, with FCDO investment, FSDAi has committed £150m to 27 investments, with one in two investments in the region successfully exiting for twice the amount.
For more information, please visit https://fsdafrica.org/fsdai-investments/.
About ACP
Allied Climate Partners (ACP) is a philanthropic investment organization working to address climate finance bottlenecks in emerging markets. ACP focuses on the specific constraints that prevent finance from reaching climate projects and companies, and works closely with local investors to design and anchor funds that bridge these gaps. Through this model, ACP helps businesses launch and scale to achieve catalytic impact on the environment where financing can be difficult. All investments aim to significantly increase additional public and private investment and unlock market power to serve targeted communities.
ACP is a 501(c)(3) nonprofit organization, and ACP’s net investment income is recycled into future funding. Through its investment activities, ACP aims to create a positive impact for vulnerable and at-risk communities, including improving access to clean and resilient infrastructure (energy, transportation, etc.) and strengthening resilience to climate risks.
For more information, please visit https://alliedclimate.org.
SOURCE Allied Climate Partners
