The continent’s efforts to strengthen its resilience to climate change have been given a boost with a US$50 million-plus investment,
The European Investment Bank (EIB) has agreed to invest US$52.48 million in the $750 million Infrastructure Climate Resilient Fund (ICRF). Managed by AFC Capital Partners (ACP), the asset management arm of the African Finance Corporation (AFC), the fund’s goal is to accelerate climate adaptation and sustainable infrastructure across Africa.
Africa Business Communities reports that ACP has already secured a $253 million commitment from the Green Climate Fund (GCF), marking GCF’s largest-ever equity investment in Africa. The Nigeria Sovereign Investment Authority and two private African pension funds are also contributing to the fund
The ICRF aims to embed resilience measures at every stage of infrastructure development – from design and construction to operation. Using blended finance to de-risk private investment, the fund also integrates tools such as climate risk parametric insurance to guard against climate-related risks and losses.
‘The EIB’s investment is not just about the initial capital injection; it is also intended to have a multiplier effect by attracting more investors, reducing risk, showcasing successful projects, and promoting best practices in climate finance,’ says EIB vice-president Ambroise Fayolle.
