Firm unveils SEC-approved $150m climate fund

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AFC Capital Partners, the asset management subsidiary of the Africa Finance Corporation, has launched its $150m Infrastructure Climate-Resilient Fund in Nigeria following regulatory approval from the Securities and Exchange Commission.

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The formal signing ceremony, held in Lagos on Monday, established the SEC-registered closed-end vehicle to channel domestic institutional capital into critical green infrastructure across the country.

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As part of a larger $750m pan-African climate initiative, the Nigerian platform aims to unlock investments from pension fund administrators, insurance firms, and sovereign wealth funds, targeting an overall project financing pool of $3.7bn.

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Speaking with journalists on the sidelines of the event, the Chief Financial Officer of AFC Capital Partners Nigeria Limited, Chika Dotimi-Beke, stated that the immediate priority is capital raising and deployment.

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“The primary goal is to bring investors into the fund. Today marks the approval of our license from the SEC, so our focus is now on onboarding institutional investors,” Dotimi-Beke said.

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She added that capital deployment would follow quickly: “We anticipate making our first investment before the end of the year. Once we achieve our first close for the Nigerian fund, we are set to prioritise investments in the transport and renewable energy sectors.”

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Highlighting the capacity of the local market, the Managing Director/CEO of Investment Banking at United Capital Plc and the financial adviser and issuing house for the transaction, Gbadebo Adenrele, pointed to the expansion of domestic savings.

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“Nigeria’s investment pool, especially within pension funds, is currently estimated at about N31tn to N32tn and is still growing,” Adenrele stated.

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He noted that Africa’s annual infrastructure financing gap stands between $130bn and $170bn, stressing the need to de-risk projects to attract institutional investors, development finance institutions, and commercial banks.

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Addressing the economic impact of climate change, the Chief Risk Officer of Africa Finance Corporation, David Johnson, revealed that Africa suffers an estimated $200bn in annual losses due to climate disruptions.

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“In Nigeria, flooding damages roads and causes severe traffic delays, while rising temperatures accelerate the wear and tear of transport networks. Transport costs currently make up nearly 40 per cent of the cost of goods,” Johnson explained.

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He emphasised that investing in resilient transport assets would lower logistics costs for businesses and consumers while generating competitive returns for investors.

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To mitigate project execution hazards and currency volatility, Johnson explained that the fund will invest across a balanced portfolio comprising early-stage projects, mid-stage financings, and mature operational assets.

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Also speaking, the Chief Executive Officer of AFC Capital Partners, Ayaan Adam, stated that the ICRF Nigeria offers institutional investors a dedicated pathway into high-yield, climate-resilient assets.

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“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.

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The vehicle is supported by the Green Climate Fund, which provides first-loss capital and technical assistance to de-risk investments and crowd in private finance.

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AFC Capital Partners is an SEC-licensed asset manager registered in Mauritius and Nigeria. Its parent body, the AFC, was established in 2007 and has deployed over $20bn across 36 African nations.

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