Africa finance corporation launches infrastructure climate-resilient fund Nigeria to mobilise domestic institutional capital

AFC Capital Partners (ACP), a subsidiary of the Africa Finance Corporation (AFC), has introduced the Infrastructure Climate-Resilient Fund Nigeria (ICRF Nigeria) to attract domestic institutional capital for climate-friendly projects in Nigeria and across Africa. Registered as a closed-end fund with the Securities and Exchange Commission (SEC), ICRF Nigeria aims to gather investments from pension fund administrators, insurers, asset managers, and other Nigerian institutional investors.

The fund, part of ACP's $750 million Infrastructure Climate-Resilient Fund (ICRF), focuses on diverse, high-impact infrastructure opportunities that prioritize climate resilience.

According to a statement, ICRF Nigeria complements ACP's efforts to bolster Africa's infrastructure resilience by integrating climate considerations into each project stage—from planning and design to construction and operation. AFC's President and CEO, Samaila Zubairu, highlighted that Africa possesses over $4 trillion in domestic resources, including substantial pools in pensions, insurance, and sovereign wealth funds.

However, the current investment pattern favors low-risk, short-term instruments over productive sectors such as infrastructure, industry, and innovation.

ACP CEO, Ayaan Adam, emphasized that ICRF Nigeria provides Nigerian institutional investors with a streamlined approach to enter high-quality, climate-resilient infrastructure ventures across Nigeria and the continent. By merging institutional capital with AFC's infrastructure expertise and blended finance mechanisms, the fund addresses both the financing requirements of crucial infrastructure and the escalating risks associated with climate change.

Importantly, this arrangement allows Nigeria's long-term savings to support infrastructure development while offering investors access to a diversified range of opportunities across Africa.