Cape Town, 27 February 2025 – The European Investment Bank (EIB) has committed $52.48 million to the Africa Finance Corporation’s (AFC) $750 million Infrastructure Climate Resilient Fund (ICRF), a landmark initiative to bolster climate adaptation and sustainable infrastructure across Africa. Managed by AFC Capital Partners (ACP), the fund has secured $253 million from the Green Climate Fund (GCF)—its largest equity investment in Africa to date—alongside commitments from the Nigeria Sovereign Investment Authority (NSIA) and two private African pension funds. Announced at the Finance in Common Summit in Cape Town, the fund aims to embed resilience in infrastructure projects while leveraging blended finance to attract private investment.
The ICRF targets Africa’s most climate-vulnerable regions, focusing on transport, logistics, clean energy, digital infrastructure, and industrial development. It will integrate innovative tools like climate risk parametric insurance to mitigate losses from climate-related events and provide technical assistance for climate risk assessment and adaptation. The initiative aligns with the EU’s Global Gateway strategy and the UN Sustainable Development Goals, addressing market failures and fostering sustainable growth. The partnership between the EIB, AFC, and GCF is expected to unlock up to $3.7 billion in financing, amplifying its impact across the continent.
EIB Vice-President Ambroise Fayolle underscored the strategic importance of the investment: “The EIB is committed to supporting private sector investment in climate-resilient infrastructure, especially in regions most vulnerable to climate change. This partnership with the Africa Finance Corporation and the launch of ACP’s Infrastructure Climate Resilient Fund are a significant step towards accelerating Africa’s green and digital transition and ensuring a sustainable future for all. 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.”
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AFC President & CEO Samaila Zubairu highlighted the fund’s broader economic implications: “This Fund is crucial for bridging the funding gap for climate adaptation in Africa. By focusing on climate-resilient infrastructure, we are not only securing our economic future but also creating opportunities for sustainable growth, and supporting job creation across the continent. We are glad to partner with the EIB and other investors who are committed to increasing the impact of climate finance.”
The fund’s strategy prioritizes infrastructure capable of withstanding climate change impacts while cutting carbon emissions. ACP will conduct rigorous climate risk screenings for each investment, ensuring assets are designed and operated to adapt to evolving conditions. The GCF will bolster this effort by covering first-loss tranches and providing technical support, de-risking projects to draw in private capital. The ICRF plans to back 10 to 12 projects across Africa, offering capacity building to enhance local expertise in climate resilience.
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This collaboration builds on the EIB’s Climate Bank Roadmap and the proven infrastructure expertise of AFC and EIB. By addressing Africa’s urgent need for resilient, low-carbon development, the fund sets a new standard for climate finance on the continent, promising both environmental and economic dividends.
