AFC Capital Partners Launches $150M Climate Fund in Nigeria

AFC Capital Partners, the asset management subsidiary of the Africa Finance Corporation, has launched its $150 million Infrastructure Climate-Resilient Fund in Nigeria following regulatory approval from the Securities and Exchange Commission (SEC). The signing ceremony took place in Lagos on Monday, establishing a closed-end vehicle to channel domestic institutional capital into critical green infrastructure.

This initiative is part of a larger $750 million pan-African climate initiative, aiming to unlock investments from pension fund administrators, insurance firms, and sovereign wealth funds, targeting an overall project financing pool of $3.7 billion. Chika Dotimi-Beke, Chief Financial Officer of AFC Capital Partners Nigeria Limited, stated that the immediate priority is capital raising and deployment, with expectations to make the first investment before the end of the year, focusing on transport and renewable energy sectors.

Gbadebo Adenrele from United Capital Plc noted Nigeria's investment pool is estimated at about N31 trillion to N32 trillion. David Johnson, Chief Risk Officer of Africa Finance Corporation, highlighted the economic impact of climate change, revealing Africa suffers $200 billion in annual losses due to climate disruptions.