Africa Finance Corporation (AFC) has the great ambition to integrate the consideration of the effects of climate change on its investments and thus promote the resilience of its funded infrastructure. AFC Capital Partners (ACP), a subsidiary of AFC, is launching the Infrastructure Climate Resilient Funds (ICRF) sized to USD 750 million to better realize this vision. It has developed a concept note for this proposed Fund with a budget up to 865million USD. The ICRF project is structured in two components and will benefit African countries with a rapidly growing youth population. The first component aims to provide ACP with the necessary anchor investment for the ICRF, allowing APC to mobilize concessional financing and co-invest with AFC in climate-resilient infrastructure projects. The second component is the tailored technical assistance program. AFC will move closer to its goal of de-risking climate-resilient infrastructure financing, overcoming barriers and risks, facilitating the financing and implementation of infrastructure projects, and improving the resilience of populations by ensuring effective implementation of these components.

This PPF, valued at USD 1,185,500, is submitted to the GCF to finance a range of studies ( Climate Rational assessment, System dynamic modeling for selected infrastructures, Feasibility Studies – Integrating climate risks assessments in AFC project design, Climate informed socio-economic analysis, including cost-benefit analysis, financial analysis and modeling, ESS Studies, Gender studies, Stakeholders’ consultations and engagement plan, and legal due diligence) required for the project to justify the relevance of the creation of the Fund and meet mainly the six investment criteria of the GCF. The studies will enrich the development of a Funding proposal for mobilizing equity and grant funding from the GCF. Advice will also be needed on the financial arrangement and donor roadshow, and deal structuring. The implementation plan for these studies is 12 months under the expertise of procured consultants and firms specialized in various relevant fields.