In a significant push for climate resilience, the European Investment Bank (EIB) has pledged its support to the Africa Finance Corporation (AFC) by investing $52.48 million. This greatly boosts the $750 million Infrastructure Climate Resilient Fund (ICRF).
Managed by AFC Capital Partners (ACP), it aims to accelerate climate adaptation and sustainable infrastructure development across the continent.
In addition to the EIB climate funding, ICRF has already secured substantial backing, including a $253 million commitment from the Green Climate Fund (GCF). This marks GCF as the largest-ever equity investment in Africa. Moreover, the Nigeria Sovereign Investment Authority (NSIA) and two private African pension funds have also committed to the fund.
According to EIB Vice-President Ambroise Fayolle, “The EIB is committed to supporting private sector investment in climate-resilient infrastructure, especially in regions most vulnerable to climate change.”
He also insisted that the partnership with the Africa Finance Corporation and the launch of ACP’s Infrastructure Climate Resilient Fund are significant steps towards accelerating Africa’s green and digital transition.
The Fund will utilize blended finance to de-risk private investment and integrate innovative tools. They include factors like climate risk and parametric insurance to enhance protection against climate-related issues. Therefore, the initiative will align with the EU’s Global Gateway and UN Sustainable Development Goals.
Moreover, the ICRF will focus on resilient, low-carbon solutions in sectors like transport, clean energy, digital infrastructure, and industrial development. It will address Africa’s vulnerability to climate change and promote sustainable growth.
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