The European Investment Bank (EIB) has made a significant contribution to the creation of the $750 million Infrastructure Climate Resilience Fund in partnership with the African Finance Corporation (AFC). The initiative aims to strengthen climate adaptation efforts across Africa by ensuring resilience measures are embedded at every stage of infrastructure development, from the initial design and construction stages to ongoing operations.
As part of this strategic partnership, the EIB has committed to invest $52.48 million in the fund, which will be overseen by AFC Capital Partners (ACP), the asset management arm of AFC. Notably, ACP has already secured a significant investment of $253 million from the Green Climate Fund (GCF), making it GCF’s largest equity investment in Africa to date. Additionally, the fund also has support from the Nigerian Government Investment Authority and two African private pension funds, further strengthening its financial backing.
The Infrastructure Climate Resilience Fund’s main objective is to accelerate climate adaptation efforts across Africa. This is achieved by incorporating resilience strategies into the infrastructure development process, thereby effectively addressing climate-related challenges. The fund employs a blended financing mechanism to reduce risks associated with private investments and incorporates innovative solutions such as climate risk parametric insurance that enhances protection against potential climate-related risks and losses.
Additionally, the Fund is committed to providing technical assistance to strengthen countries’ capacities in conducting climate risk assessments and implementing adaptation strategies. This is in line with the European Union’s Global Gateway Initiative and the United Nations Sustainable Development Goals.
EIB Deputy President Ambroise Fayol underlined the Bank’s dedication to promoting private sector investment in climate-resilient infrastructure, particularly in regions most vulnerable to the effects of climate change. He said: “This partnership with Africa Finance Corporation and the launch of ACP’s Infrastructure Climate Resilience Fund signify a major step forward in accelerating Africa’s green digital transition and securing a sustainable future for all. EIB’s investment is not just an initial capital injection, but is designed to create synergies by attracting additional investors, mitigating risks, showcasing successful projects and promoting best practices in climate finance.”
Samaira Zubair, President and CEO of AFC, emphasized the critical importance of the Fund in addressing the financing gap for climate adaptation in Africa. He said: “By focusing on climate-resilient infrastructure, we are not only securing the future of our economies, but also creating opportunities for sustainable growth and supporting job creation across Africa. We are pleased to partner with the EIB and other investors dedicated to amplifying the impact of climate finance.”
Once operational, the Infrastructure Climate Resilience Fund aims to invest in a diversified portfolio of 10-12 projects across Africa. Additionally, it will build capacity and provide support to countries and organizations to deploy effective climate risk assessment and adaptation solutions, thereby contributing to a more resilient and sustainable future for the continent.
