AFC Launches Infrastructure Climate-resilient Fund Nigeria to Mobilise Domestic Institutional Capital

AFC Capital Partners (ACP), the asset management arm of Africa Finance Corporation (AFC), has launched the Infrastructure Climate-Resilient Fund Nigeria (ICRF Nigeria). This new platform is specifically designed to channel domestic institutional capital into climate-resilient infrastructure projects throughout Nigeria and the broader African continent.

Registered as a closed-end fund with the Securities and Exchange Commission (SEC), ICRF Nigeria seeks to direct funds from Nigerian pension fund administrators, insurers, asset managers, and other institutional investors. The capital will be deployed into a diversified portfolio of commercially viable, high-impact infrastructure opportunities.

ICRF Nigeria is part of ACP's larger $750 million Infrastructure Climate-Resilient Fund (ICRF). This pioneering initiative aims to bolster the resilience of Africa's infrastructure by integrating climate considerations across the entire asset lifecycle, from initial planning and design through to construction and ongoing operation.

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Africa is not short of capital. The continent holds more than $4 trillion in domestic resources, including significant pools of long-term capital in pensions, insurance and sovereign wealth funds. Yet too much of this wealth remains invested in low-risk, short-term instruments rather than being channeled into productive sectors such as infrastructure, industry and innovation.

AFC's President and CEO, Samaila Zubairu, highlighted that Africa possesses significant domestic capital, exceeding $4 trillion, including substantial long-term funds held by pensions, insurance, and sovereign wealth funds. He noted that much of this wealth remains in low-risk, short-term instruments instead of being directed towards crucial sectors like infrastructure, industry, and innovation.

Ayaan Adam, CEO of ACP, emphasized that ICRF Nigeria offers Nigerian institutional investors a direct pathway into robust, climate-resilient infrastructure investments. "By combining institutional capital with AFC’s infrastructure expertise and the catalytic power of blended finance, we can address both the financing needs of critical infrastructure and the growing risks posed by climate change," Adam stated. She added that this initiative allows Nigeria's long-term savings to support infrastructure development while providing investors access to a diverse range of continental opportunities.

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ICRF Nigeria gives Nigerian institutional investors a dedicated route into high-quality, climate-resilient infrastructure investments across Nigeria and Africa. By combining institutional capital with AFC’s infrastructure expertise and the catalytic power of blended finance, we can address both the financing needs of critical infrastructure and the growing risks posed by climate change.