Nairobi. The Africa Finance Corporation (AFC) has secured a fresh commitment from the Development Bank of Southern Africa (DBSA) for its $750 million Infrastructure Climate Resilient Fund (ICRF), in a move aimed at accelerating climate adaptation financing across the continent.
The agreement was signed on the sidelines of The Africa We Build Summit in Nairobi, signalling growing alignment among African institutions on the need to embed climate resilience in infrastructure development.
Managed by AFC Capital Partners, the fund is designed to integrate climate resilience measures across the full lifecycle of infrastructure projects—from planning and design to construction and operation.
The initiative seeks to ensure infrastructure systems in African economies can withstand increasingly severe and unpredictable climate shocks.
The DBSA’s participation adds to a pool of institutional investors that have already backed the fund, including the Green Climate Fund, which has committed $253 million—its largest equity investment in Africa to date. Other contributors include the European Investment Bank and the Nigeria Sovereign Investment Authority, alongside several African pension funds.
AFC said the fund is structured to attract both public and private capital through blended finance mechanisms, combining concessional and commercial funding to overcome long-standing barriers to climate adaptation investment.
AFC President and Chief Executive Officer, Samaila Zubairu, said the initiative responds to mounting climate pressures on the continent.
“Africa is already losing between two and five percent of GDP annually due to climate shocks, while adaptation needs are estimated at up to $50 billion each year,” he said. “This partnership with DBSA reflects strong institutional alignment and marks an important milestone.”
DBSA Chief Executive Officer, Boitumelo Mosako, said the pace of climate impacts demands urgent and coordinated action.
“Africa does not have the luxury of waiting. Climate shocks are outpacing adaptation finance, and vulnerable communities continue to bear the greatest burden,” she said.
The fund targets investments in renewable energy, transport and logistics, digital infrastructure and industrial development—sectors considered critical to low-carbon growth and economic resilience.
Each project will undergo detailed climate risk assessments, including exposure to extreme weather, emissions pathways and governance standards, to ensure resilience is embedded from the outset.
The Green Climate Fund is expected to play a catalytic role by providing first-loss capital and technical support for climate risk analysis, helping to crowd in additional institutional investors.
AFC Capital Partners estimates the fund could mobilise up to $3.7 billion in total financing, supporting a pipeline of between 10 and 12 infrastructure projects across Africa.
