FSD Africa Investments and Allied Climate Partners (ACP) have committed $50 million in catalytic capital to the inaugural financing of the African Transition Acceleration Fund (ATAF), designed to support early-stage energy transition projects across Africa.
The fund, managed by African Infrastructure Investment Managers, has a $200 million target and aims to accelerate investment in climate infrastructure while supporting economic development and job creation across the continent.
Catalytic capital targets gaps in early-stage projects
ATAF focuses on the lack of funding that often prevents promising infrastructure efforts from progressing beyond initial development. Many infrastructure funds prioritize projects that have already reached loanable value, leaving early-stage ventures without access to the capital they need to scale.
Anne-Marie Chisero, Chief Investment Officer at FSD Africa Investments, said: “Africa’s energy transition cannot be financed by waiting for projects to be safe enough for traditional capital. Someone has to act first. This partnership with ACP, and our core commitment to ATAF, is that we will be the first to act.”
The fund will direct capital to early-stage developers and companies working on climate infrastructure platforms across three areas: renewable power and energy efficiency, sustainable transportation including electric vehicles, and clean fuels such as green ammonia, fertilizers and biofuels.
pan-african investment strategy
ATAF will adopt a pan-African investment strategy aimed at accelerating project development, strengthening management teams and creating a platform capable of attracting commercial capital at scale.
The initiative aims to deliver environmental and economic benefits, including creating jobs, reducing emissions and expanding access to clean electricity, green fuels and low-carbon transportation systems across the continent.
“ATAF is a testament to the power of partnerships with purpose. Together with FSDAi and others, we will empower ATAF to foster new markets and accelerate innovative infrastructure platforms and enterprises, creating jobs, empowering economies and strengthening communities across Africa at risk of the devastating impacts of global change,” said Ahmed Saeed, CEO of Allied Climate Partners.
Experienced managers lead fund development
The African Infrastructure Investment Manager will manage the fund drawing on more than 20 years of investment experience in sectors such as renewable energy, transport and digital infrastructure across Africa.
The investment strategy will be led by Lisa Pinsley, who has over 18 years of experience investing in energy projects across the continent.
Additional investors supporting the completion of the initial transaction include the International Finance Corporation through the Frontier Opportunities Fund, development finance institutions such as KfW and Proparco, and private sector co-investors.
Partnership expands climate investment efforts
This investment is the first initiative under a strategic partnership established in 2024 between FSD Africa Investments and Allied Climate Partners.
FSD Africa Investments is supported by the UK Foreign Office and is focused on developing financial markets across Africa by deploying risk-bearing long-term capital.
ATAF forms part of a broader portfolio of climate and infrastructure investments supported by FSD Africa Investments, including initiatives such as InfraCredit Nigeria, Acre Impact Fund, African Local Currency Bond Fund and African Climate Transformation Fund.
www.fsdafrica.org
www.alliedclimate.org
www.aiimafrica.com
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