AFC Capital Partners (ACP), the asset management arm of Africa Finance Corporation (AFC), has launched the Infrastructure Climate-Resilient Fund Nigeria (ICRF Nigeria), a new investment platform aimed at mobilising domestic institutional capital for climate-resilient infrastructure projects in Nigeria and across Africa.

The fund, registered with the Securities and Exchange Commission (SEC) as a closed-end fund, will provide pension fund administrators (PFAs), insurance companies, asset managers and other Nigerian institutional investors with access to a diversified portfolio of commercially viable infrastructure projects.

ICRF Nigeria is part of ACP’s broader US$750 million Infrastructure Climate-Resilient Fund (ICRF), which is designed to strengthen the resilience of African infrastructure against increasing climate-related risks.
The initiative comes as African countries face growing infrastructure financing gaps, alongside rising risks from extreme weather events and other effects of climate change.

According to AFC, the ICRF has secured commitments from major global and African institutional investors, including a US$253 million first-loss commitment from the Green Climate Fund (GCF), its largest equity investment in Africa to date.

Other investors include the European Investment Bank (EIB), Development Bank of Southern Africa (DBSA), Cassa Depositi e Prestiti (CDP), Nigeria Sovereign Investment Authority (NSIA) and several African pension funds.
ACP said it expects the ICRF to mobilise up to US$3.7 billion in total financing and develop a portfolio of between 10 and 12 infrastructure projects across the continent.

Commenting on the initiative, AFC President and Chief Executive Officer, Samaila Zubairu, said Africa had substantial domestic financial resources that could be better deployed to support infrastructure development.

“Africa is not short of capital. The continent holds more than US$4 trillion in domestic resources, including significant pools of long-term capital in pensions, insurance and sovereign wealth funds,” Zubairu said.

He, however, noted that a significant portion of the capital remains invested in low-risk and short-term instruments instead of productive sectors such as infrastructure, industry and innovation.

According to him, the launch of ICRF Nigeria would help create a link between Africa’s long-term savings and its long-term development requirements.

“ICRF Nigeria is an important step in that direction, enabling Nigerian institutional capital to participate in the infrastructure that will drive more resilient and sustainable growth across Nigeria and the continent,” he added.
Also speaking, ACP Chief Executive Officer, Ayaan Adam, said the fund would give Nigerian institutional investors a dedicated channel to invest in climate-resilient infrastructure while gaining exposure to opportunities across the continent.

“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 said.

She added that the initiative would enable Nigeria’s long-term savings to support infrastructure development while providing investors with access to a diversified portfolio of projects.

The ICRF uses a combination of concessional and commercial capital to address barriers that have historically limited private investment in climate adaptation infrastructure in Africa.

Through blended finance and de-risking mechanisms, the fund seeks to incorporate climate resilience into infrastructure projects from the planning and design stages through construction and operations.

Its target sectors include renewable energy, transport and logistics, digital infrastructure and industrial development, areas considered critical to Africa’s economic transformation.

Investment decisions will take into account physical and transition climate risks, including exposure to extreme weather events, emissions pathways and climate governance.

AFC said each proposed investment would undergo climate risk screening and assessment to ensure resilience is incorporated throughout the infrastructure lifecycle.

The Green Climate Fund is expected to play a catalytic role through first-loss capital and technical assistance for climate-risk assessment and monitoring, helping to reduce investment risks and attract additional private and institutional capital.

The launch of ICRF Nigeria therefore positions domestic pension and insurance funds as potential sources of long-term financing for infrastructure, while providing an investment structure designed to balance commercial returns with climate resilience and development impact.