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The European Investment Bank (EIB), today, announced it has committed to join Africa Finance Corporation (AFC) in financing a $750 million Infrastructure Climate Resilient Fund (ICRF). The ICRF aims to accelerate climate adaptation and sustainable infrastructure across Africa.

As part of this commitment, EIB said it will invest $52.48 million in the fund, which is managed by AFC Capital Partners (ACP), the asset management arm of AFC.

ACP has already secured a $253 million commitment from the Green Climate Fund (GCF), marking GCF’s largest-ever equity investment in Africa. In addition, the Nigeria Sovereign Investment Authority, which manages Nigeria’s sovereign wealth fund, and two private African pension funds have also committed to the fund.

The ICRF aims to accelerate climate adaptation in Africa by embedding resilience measures at every stage of infrastructure development, from design and construction to operation, according to a statement EIB sent to Financial Nigeria. Using blended finance to de-risk private investment, the fund also integrates innovative tools such as climate risk parametric insurance to enhance protection against climate-related risks and losses. EIB disclosed that the fund will also provide technical assistance to enhance the capacity of countries seeking climate risk assessment and adaptation, aligning with the European Union’s Global Gateway initiative and the UN Sustainable Development Goals.

The EIB formally signed the agreement today at the Finance in Common Summit (FICS) in Cape Town, South Africa.

"The EIB is committed to supporting private sector investment in climate-resilient infrastructure, especially in regions most vulnerable to climate change,” EIB Vice-President Ambroise Fayolle stated at the ceremony today. “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."

AFC’s President/CEO, Samaila Zubairu, said 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,” said Mr. Zubairu.

Providing further information on the ICRF, EIB said the fund focuses on Africa, the world’s most climate-vulnerable continent, by investing in infrastructure that can withstand the impacts of climate change while reducing carbon emissions. It added that the ICRF prioritises resilient, low-carbon solutions across transport and logistics, clean energy, digital infrastructure, and industrial development, ensuring sustainable growth.

Once operational, the fund aims to invest in a diversified portfolio of 10 to 12 projects across Africa. It will also assist countries and entities in capacity building and deployment of climate risk assessment and adaptation solutions.

Key projects in the ICRF pipeline include the Lobito Corridor, for which AFC is the lead developer. The project is expected to provide a critical trade and logistics route linking Angola, the Democratic Republic of Congo (DRC), and Zambia.

EIB said its investment in the fund aligns with EU strategies, the African Union's Agenda 2063, and the UN Sustainable Development Goals, and aims to support the implementation of Nationally Determined Contributions, an initiative based on voluntary commitment of countries to cut their carbon emissions under the 2015 Paris climate accord.

AFC was established in 2007 to be the catalyst for infrastructure and industrial investments across Africa. It invests in infrastructure assets in the power, natural resources, heavy industry, transport, and telecommunications sectors. With 44 member countries, AFC has invested over $15 billion in 36 African countries since its inception.