The European Investment Bank (EIB) has joined the Africa Finance Corporation (AFC) in financing a $750 million Infrastructure Climate-Resilient Fund (ICRF), aimed at strengthening climate adaptation across Africa. As part of its commitment, the EIB will invest $52.48 million in the fund, which is managed by AFC Capital Partners (ACP), the asset management arm of AFC. The fund has already secured a $253 million commitment from the Green Climate Fund (GCF), marking GCF’s largest-ever equity investment in Africa. The Nigeria Sovereign Investment Authority (NSIA) and two private African pension funds have also pledged contributions, demonstrating strong institutional backing across the continent and internationally.
According to the EIB, the ICRF aims to accelerate climate adaptation by embedding resilience measures at every stage of infrastructure development—from design and construction to operation. By leveraging blended finance to mitigate investment risks, the fund integrates tools such as climate risk parametric insurance to enhance protection against climate-related threats and losses. Additionally, the fund will provide technical assistance to help countries assess climate risks and implement adaptation strategies, aligning with the European Union’s Global Gateway initiative and the United Nations Sustainable Development Goals. The EIB formally signed the agreement at the Finance in Common Summit (FICS) in Cape Town last week.
“The EIB is committed to supporting private sector investment in climate-resilient infrastructure, particularly in regions most vulnerable to climate change,” EIB Vice President Ambroise Fayolle said at the ceremony. “This partnership with the Africa Finance Corporation and the launch of ACP’s Infrastructure Climate-Resilient Fund mark a significant step in accelerating Africa’s green and digital transition. Our investment is not just about initial capital—it’s about attracting more investors, reducing risk, and showcasing best practices in climate finance.”
ACP’s fund aims to demonstrate that Africa can pursue a climate-resilient and sustainable development path by addressing market failures, mitigating environmental risks, and enhancing logistics, trade, and industrialization. The fund also seeks to accelerate Africa’s digital and energy transition. “This fund is crucial for bridging the climate adaptation financing gap in Africa,” AFC President and CEO Samaila Zubairu said at the launch event. “By focusing on climate-resilient infrastructure, we are not only securing our economic future but also fostering sustainable growth and job creation across the continent.” The ICRF focuses on Africa, the world’s most climate-vulnerable continent, by investing in infrastructure that can withstand climate change impacts while reducing carbon emissions. The fund prioritizes resilient, low-carbon solutions in transport and logistics, clean energy, digital infrastructure, and industrial development to ensure sustainable growth.