Sierra Leone Telegram: February 27, 2025:
The European Investment Bank (EIB) has committed to financing the $750 million Infrastructure Climate Resilience Fund (ICRF) in partnership with the African Finance Corporation (AFC). This groundbreaking initiative will accelerate climate adaptation and sustainable infrastructure across Africa.
As part of this commitment, the EIB has today confirmed a $52.48 million investment in the fund, which will be managed by AFC Capital Partners (ACP), the asset management arm of the AFC. ACP has already secured a $253 million investment from the Green Climate Fund (GCF), making it GCF’s largest equity investment in Africa to date.
In addition, the Nigerian Government Investment Authority (NSIA) and two African private pension funds also participate in the fund, demonstrating strong institutional support within the continent and internationally.
The Infrastructure Climate Resilience Fund aims to accelerate climate adaptation in Africa by embedding resilience measures at every stage of infrastructure development, from design to construction to operation. The Fund uses blended finance to de-risk private investments and also integrates innovative tools such as climate risk parametric insurance to enhance protection against climate-related risks and losses.
Additionally, the Fund will provide technical assistance to strengthen the capacity of countries seeking to assess and adapt to climate risks, in line with the European Union’s Global Gateway Initiative and the United Nations Sustainable Development Goals.
The EIB formally signed the agreement today at the Finance in Common Summit (FICS) in Cape Town, demonstrating the close collaboration between the EIB, AFC and other strategic partners.
“The EIB is committed to supporting private sector investment in climate-resilient infrastructure, particularly in the regions most vulnerable to climate change,” EIB Vice-President Ambroise Fayol said at today’s ceremony. “This partnership with Africa Finance Corporation and the launch of ACP’s Infrastructure Climate Resilience Fund are important steps towards accelerating Africa’s green digital transition and securing a sustainable future for all. EIB’s investment is not just an initial capital injection, but also aims to create synergies by attracting more investors, mitigating risks, showcasing successful projects and promoting best practices in climate finance.”
ACP’s funds aim to demonstrate that Africa can pursue a climate-resilient and sustainable development path by addressing market failures, reducing environmental risks, strengthening logistics, trade and industrialization, and accelerating the continent’s digital and energy transition.
“This fund is critical to filling the financing gap for climate adaptation in Africa,” AFC President and CEO Samaira Zubair said at today’s launch event. “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 the continent. We are delighted to partner with the EIB and other investors committed to amplifying the impact of climate finance.”
Developing climate-resilient infrastructure
ICRF is focused on Africa, the world’s most climate-vulnerable continent, by investing in infrastructure that can withstand the effects of climate change while reducing carbon emissions. The Fund will prioritize resilient, low-carbon solutions across transport and logistics, clean energy, digital infrastructure and industrial development to ensure sustainable growth.
ACP’s investment strategy assesses climate risks across both physical and transition dimensions, including emissions and climate governance. The Fund is committed to ensuring that infrastructure assets are designed, constructed and operated to withstand and adapt to evolving climate conditions. To achieve this, ACP conducts rigorous climate risk screening and assessment of all investments, establishing new benchmarks for selecting and implementing the most effective adaptation solutions.
The Fund leverages the strong partnership between three key institutions: the EIB, AFC and GCF, bringing together their respective expertise, capital and climate resilience efforts. In line with the EIB’s climate banking roadmap, the ACP will leverage both the EIB’s and AFC’s proven track record and deep technical expertise in infrastructure investment to create an attractive platform to attract further investors.
Through this strategic collaboration, the $750 million fund will raise up to $3.7 billion to accelerate the deployment of climate-resilient infrastructure across Africa.
The GCF will play an important role by providing technical assistance for due diligence and monitoring of climate change resilience, as well as covering the initial loss portion of new investments, effectively mitigating project risks and attracting private capital.
Once operational, the fund aims to invest in a diversified portfolio of 10 to 12 projects across Africa. We also support countries and organizations in capacity building and deployment of climate risk assessment and adaptation solutions.
Leverage partnerships
The Fund is built on a strong partnership between three key institutions: the European Investment Bank (EIB), the African Finance Corporation (AFC) and the Green Climate Fund (GCF). AFC, through its asset management arm AFC Capital Partners (ACP), is working with the EIB to deploy the fund, leveraging both institutions’ proven track record and technical expertise in infrastructure investing to attract additional investors.
This partnership is further strengthened by GCF’s critical role in providing early loss protection and technical assistance, ensuring a strong framework for expanding climate-resilient infrastructure across Africa.
Mobilizing climate finance
The EIB’s $52.48 million contribution is a strategic step towards the Fund’s $750 million target and aims to stimulate additional investment in climate-resilient infrastructure from both public and private partners. The initiative will raise a total of approximately $3.7 billion and is expected to have tangible on-the-ground impact across Africa.
Focus on the EIB’s core priorities agreed by ECOFIN
The EIB’s investment will support the Climate Bank’s ambition to accelerate international action on adaptation and resilience. The project is expected to contribute approximately 80% to climate action and environmental sustainability, contributing to the EIB’s goals of (i) 50% of financing to climate action and environmental sustainability and (ii) 15% of financing to climate adaptation by 2025.
The Fund supports three of the EU Global Gateway’s five thematic priorities: i) climate and energy, ii) transport, and iii) digital.
Dealing with market failures
The EIB’s investment in the ACP’s Infrastructure Climate Resilience Fund aims to address the lack of equity capital for greenfield infrastructure projects and help overcome other market failures, such as the lack of incentives for green energy solutions and market failures related to transport access and digital connectivity. The fund also aims to improve the efficiency of logistics and trade routes and contribute to the digital and energy transition.
Supporting green and digital transitions
By investing in clean energy and digital infrastructure, the Fund aims to support Africa’s broader green and digital transition, contributing to the diversification and security of energy supplies and improved access to digital connectivity.
Strengthening climate risk management capacity
ACP’s Infrastructure Climate Resilience Fund provides technical assistance to build climate risk assessment and adaptation capacity, with a focus on integrating climate risk considerations into project design and construction.
Creating jobs and economic opportunities
Projects supported by ACP’s Infrastructure Climate Resilience Fund help create jobs, grow the economy, and improve the quality of life in targeted regions. These projects are expected to create permanent jobs during operation as well as significant temporary jobs during construction.
Major projects in the ICRF pipeline, such as the Lobito Corridor, highlight the pivotal role of the AFC in driving transformative, climate-resilient infrastructure investments across Africa.
As the project’s lead developer, AFC is spearheading efforts to strengthen regional connectivity and economic integration through the corridor, which is expected to be an important trade and logistics route linking Angola, the Democratic Republic of the Congo (DRC) and Zambia.
The Lobito Corridor is expected to generate enormous economic opportunities by facilitating the efficient transportation of critical minerals, agricultural products and other goods, reducing dependence on other congested export routes, and fostering industrial development along the wider corridor.
AFC is working with partners such as the European Union, the U.S. government, the African Development Bank, and the governments of Angola, the Democratic Republic of the Congo, and Zambia to ensure the corridor is developed with climate resilience in mind, integrating sustainable infrastructure solutions that can withstand environmental challenges while fostering long-term economic growth.
Beyond Lobito, the ICRF pipeline includes other strategic projects across transport, clean energy, and digital infrastructure, all aimed at attracting institutional investment and addressing Africa’s pressing infrastructure deficit.
Through these initiatives, ACP continues to emphasize its commitment to mobilizing capital for projects that deliver both economic benefits and lasting development impact.
Investments supported by the Fund actively promote the adoption of environmental, social and governance (ESG) best practices, including gender equality, protection and anti-discrimination policies.
Investment without risk
The fund’s structure, with support from other institutions such as the EIB and the Green Climate Fund (GCF), aims to de-risk climate investments.
GCF offers grants to support due diligence and climate change resilience monitoring to make investments more attractive to other investors. In addition, the fund will integrate innovative climate risk insurance to complement traditional compensation programs.
Alignment with global and regional goals
EIB’s investments are in line with the EU’s strategy, the African Union’s Agenda 2063 and the United Nations’ Sustainable Development Goals and aim to support the implementation of nationally determined contributions.
About EIB Global
EIB Global (https://apo-opa.co/3CYKtgF) is a specialized division of the EIB Group dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong and focused partnerships within Team Europe (https://apo-opa.co/41x4cxk), together with other development finance institutions and civil society. EIB Global connects the Group more closely with local people, businesses and institutions through its offices around the world (https://apo-opa.co/3CWIAkA).
About AFC
AFC was established in 2007 with the aim of promoting viable infrastructure and industrial investment across Africa. AFC’s approach combines industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.
After 17 years, AFC has established itself as Africa’s partner of choice for investing in and delivering high-quality infrastructure assets that provide essential services to core infrastructure sectors such as power, natural resources, heavy industry, transportation and telecommunications. AFC has 45 member countries and has invested more than US$15 billion in 36 African countries since its founding.
www.AfricaFC.org
