AFC, DBSA Partner to Scale Climate-Resilient Infrastructure Investment Across Africa
Africa Finance Corporation (AFC) has secured a major commitment from the Development Bank of Southern Africa (DBSA) towards its US$750 million Infrastructure Climate-Resilient Fund (ICRF), reinforcing efforts to strengthen climate adaptation across Africa’s infrastructure systems.
The agreement was signed at AFC’s ongoing Africa We Build Summit in Nairobi, underscoring growing alignment among African financial institutions to position infrastructure as a driver of climate resilience, regional integration and long-term economic transformation.
Managed by AFC Capital Partners (ACP), the ICRF is designed to embed climate resilience across the full lifecycle of infrastructure projects, from planning and design to construction and operation. The fund aims to address the increasing vulnerability of infrastructure to climate-related shocks across the continent.
DBSA’s participation adds to a growing pool of institutional investors backing the fund, including the Green Climate Fund (GCF), which has committed US$253 million in what is its largest equity investment in Africa to date.
Other contributors include the European Investment Bank (EIB), the Nigeria Sovereign Investment Authority (NSIA), and several African pension funds.
The ICRF is structured to attract both public and private capital into climate-resilient infrastructure by blending concessional and commercial financing. This approach is intended to overcome long-standing barriers to investment in climate adaptation, while enabling large-scale private sector participation through targeted risk mitigation mechanisms.
AFC President and Chief Executive Officer, Samaila Zubairu, said the fund responds to the urgent need to safeguard Africa’s infrastructure against the growing impacts of climate change.
“ICRF is our response to a defining challenge, ensuring Africa’s infrastructure is built to withstand the growing impacts of climate change. With the continent losing an estimated 2 to 5 per cent of GDP annually to climate shocks and adaptation needs reaching up to US$50 billion each year, the urgency is clear,” he said.
DBSA Chief Executive Officer, Boitumelo Mosako, emphasised the importance of collective action among development finance institutions.
“Africa does not have the luxury of waiting. Climate shocks are outpacing adaptation finance, and vulnerable communities continue to bear the greatest burden. This partnership sends a clear signal that development finance institutions are pooling their mandates, capital and risk appetite to achieve what neither institution can accomplish alone,” she said.
The fund targets investment in key sectors including renewable energy, transport and logistics, digital infrastructure and industrial development, sectors considered essential for enabling low-carbon growth while strengthening economic resilience.
ICRF integrates both physical and transition climate risks into its investment strategy, with each project undergoing rigorous climate risk screening to ensure resilience is embedded from the outset. The GCF plays a catalytic role by providing first-loss capital and technical support, helping to de-risk investments and attract additional institutional funding.
Through the ICRF, AFC Capital Partners is expected to mobilise up to US$3.7 billion in total financing, supporting a diversified portfolio of 10 to 12 infrastructure projects across Africa.
