EIB Partners with Africa Finance Corporation to Launch $750 Million Infrastructure Climate Resilient Fund for Africa’s Green Future

Photo credit: EIB

(IN BRIEF) The European Investment Bank (EIB) is joining forces with Africa Finance Corporation (AFC) to finance the $750 million Infrastructure Climate Resilient Fund (ICRF), a major step towards advancing climate adaptation and sustainable infrastructure across Africa. EIB’s contribution of $52.48 million complements commitments from other key institutional backers, including the Green Climate Fund (GCF), Nigeria Sovereign Investment Authority (NSIA), and several African pension funds. The ICRF aims to embed climate resilience into infrastructure development, de-risk private investment, and promote sustainable growth across the continent.

(PRESS RELEASE) LUXEMBOURG, 27-Feb-2025 — /EuropaWire/ — The European Investment Bank (EIB) has announced its commitment to partner with Africa Finance Corporation (AFC) in financing a groundbreaking initiative to advance climate resilience across Africa. The Infrastructure Climate Resilient Fund (ICRF), with a target value of $750 million, is designed to promote sustainable and climate-adaptive infrastructure development across the continent.

As part of the collaboration, the EIB has confirmed an investment of $52.48 million into the Fund, which is managed by AFC Capital Partners (ACP), the asset management division of AFC. This investment builds on significant support already secured by ACP, including a $253 million commitment from the Green Climate Fund (GCF), marking GCF’s largest equity investment in Africa to date. Additionally, the Nigeria Sovereign Investment Authority (NSIA) and two private African pension funds have joined in backing the Fund, underscoring the broad institutional support for the initiative both within Africa and globally.

The ICRF is designed to enhance climate adaptation efforts by integrating resilience into the full life cycle of infrastructure projects—spanning from design and construction to ongoing operation. Through the use of blended finance, the Fund aims to mitigate the risks that typically discourage private investment in climate-resilient projects. Moreover, the Fund will implement innovative solutions, such as climate risk parametric insurance, to protect against climate-related losses and promote greater financial stability. It will also provide essential technical assistance for countries seeking to assess and adapt to climate risks, aligning its efforts with the EU’s Global Gateway initiative and supporting the United Nations Sustainable Development Goals (SDGs).

The official signing of the agreement occurred at the Finance in Common Summit (FICS) in Cape Town, marking a milestone in the EIB’s and AFC’s ongoing efforts to foster collaboration among strategic partners focused on driving climate resilience and sustainability.

Ambroise Fayolle, Vice-President of the EIB, emphasized the significance of this partnership in his remarks: “The EIB is steadfast in its dedication to supporting private sector investment in climate-resilient infrastructure, particularly in regions most vulnerable to climate change. This partnership with AFC and the launch of ACP’s Infrastructure Climate Resilient Fund represent a critical step toward accelerating Africa’s green and digital transition, ensuring a sustainable future for all. Our investment goes beyond the initial capital injection; it aims to attract more investors, lower risks, and promote successful climate finance projects.”

Samaila Zubairu, President & CEO of AFC, also highlighted the transformative potential of the Fund: “This Fund is pivotal in addressing the funding gap for climate adaptation in Africa. By focusing on resilient infrastructure, we’re not just securing our economic future; we’re also creating jobs and opportunities for sustainable growth across the continent. We’re proud to partner with the EIB and other investors who share our vision for impactful climate finance.”

The ICRF focuses on addressing the vulnerabilities of Africa, the continent most affected by climate change, by supporting the development of infrastructure capable of withstanding its adverse impacts while simultaneously reducing carbon emissions. Priority areas for investment include low-carbon solutions for transport and logistics, clean energy, digital infrastructure, and industrial development—key sectors that are vital for Africa’s long-term sustainable growth.

ACP’s investment strategy rigorously assesses both physical and transition climate risks, incorporating detailed evaluations of emissions and climate governance. To ensure resilience, every project funded by the ICRF will undergo climate risk screenings and assessments, setting new benchmarks for effective adaptation solutions. This careful approach aligns with the EIB’s Climate Bank Roadmap and draws on the combined expertise of the EIB and AFC in infrastructure investment.

The partnership between EIB, AFC, and GCF forms a robust framework to leverage their respective strengths and attract additional investment, with the potential to unlock up to $3.7 billion in financing. Once fully operational, the Fund will invest in a diverse range of 10 to 12 infrastructure projects across Africa, while also providing crucial capacity-building support for nations and organizations working to implement climate risk assessments and adaptation strategies.

The GCF will play a central role in supporting the Fund’s efforts, offering technical assistance and de-risking investments by covering the first-loss tranches on new projects.

This collaboration signals a significant step toward Africa’s green and sustainable future, positioning the ICRF as a key vehicle for climate adaptation and infrastructure development across the continent.

About EIB Global

EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance.  EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.

About AFC

AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments across Africa. AFC’s approach combines specialist 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.

Seventeen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 44 member countries and has invested over US$15 billion in 36 African countries since its inception.

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SOURCE: European Investment Bank