LR Boladele Odunlami, Commercial Manager, Nestlé Nigeria; Akujize Ejiofor, grand prize winner; Omofasa Orhinu, Category Manager, Healthy Cereal Solutions, Nestlé Nigeria; and Josu Mbasi, Financial Controller, Nestlé Nigeria, at the unveiling of the grand prize winner of the Golden Morn Golden Hunt Promo in Lagos on Friday. Photo by Olawale Amoo
Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, has announced a commitment from the Development Bank of Southern Africa (DBSA) to its $750 million Infrastructure Climate Resilient Fund (ICRF).
The agreement, signed at the ongoing AFC The Africa We Build Summit in Nairobi, is an important step in scaling up climate adaptation finance across Africa and emphasizes strengthening African institutional alignment around climate resilience, regional integration and infrastructure as a catalyst for long-term economic transformation.
Managed by the Corporation's asset management subsidiary AFC Capital Partners (ACP), the ICRF is a leading infrastructure fund designed to climate-proof Africa's infrastructure by incorporating resilience measures across the entire asset lifecycle, from planning and design to construction and operation. The Fund directly addresses a critical development challenge facing the continent: ensuring that infrastructure systems can withstand increasingly severe and unpredictable climate impacts.
DBSA's commitment to the ICRF reinforces the growing African institutional alignment and momentum around climate-resilient infrastructure as a distinct and investable asset class.
The fund has already attracted strong participation from leading global and African institutional investors, including a $253 million commitment from the Green Climate Fund (GCF), the European Investment Bank (EIB), the Nigeria Sovereign Investment Authority (NSIA) and several African pension funds, as well as its largest equity investment in Africa to date.
The entry of the DBSA further strengthens the Fund's position as a leading vehicle for mobilizing climate finance into transformative climate-resilient infrastructure across Africa.
The ICRF is structured to attract both public and private capital into infrastructure projects that integrate climate resilience from the outset. By combining concessional and commercial capital, the Fund addresses long-standing market barriers that have historically hindered investment in climate adaptation in Africa. Through blended finance and targeted de-risking mechanisms, the Fund enables the integration of resilience measures that would otherwise be difficult to finance, thereby unlocking large-scale private capital.
Samaila Zubairo, President and CEO of Africa Finance Corporation, commented, “The ICRF is our response to a defining challenge, ensuring that Africa's infrastructure is built to withstand the increasing impacts of climate change. With the continent facing an estimated 2 percent to 5 percent of GDP loss annually due to climate-related shocks and adaptation needs, amounting to $50 billion each year, the urgency is clear. That's why we are calling for the Fund. “We are pleased to welcome DBSA as a key partner. Their partnership reflects strong African institutional alignment and marks an important milestone in the partnership, which we look forward to deepening in the years to come.”
Boitumelo Mosako, Chief Executive Officer of the Development Bank of Southern Africa, commented: “Africa does not have the luxury of waiting. Climate shocks are outpacing adaptation finance, and vulnerable communities are bearing the greatest burden. This partnership with Africa Finance Corporation sends a clear signal that development finance institutions are pooling their mandate, capital and risk appetite to achieve what no single institution can accomplish alone.”
