The Green Climate Fund and Africa Finance Corporation sign project agreement for the Infrastructure Climate Resilient Fund (ICRF)

The Green Climate Fund (GCF) and Africa Finance Corporation (AFC) signed a project agreement to begin implementing the Infrastructure Climate Resilient Fund (ICRF).  As an innovative finance instrument established to climate proof Africa’s infrastructure, ICRF will introduce climate-resilient infrastructure as a new asset class in the African investment landscape.

GCF’s USD 240 million junior first-loss equity investment in the fund will catalyse investments from private sector investors and pension funds and unlock the financial potential that can benefit up to 50 million people directly and 144 million people indirectly by securing them reliable infrastructure services across 19 countries.  It is GCF’s largest equity investment in Africa to date.

The project agreement – also called the Funded Activity Agreement (FAA) - was signed on 22 September 2023, following GCF Board approval of the project at the 35th Board meeting in March 2023.  With the signing of the FAA, AFC, as the Accredited Entity, can move from approval to implementation.

At the signing ceremony, AFC President and CEO Samaila Zubairu commented on the partnership between GCF and AFC as the funds from GCF will enable AFC to catalyse climate finance at scale to transform infrastructure projects in Africa. GCF Executive Director Mafalda Duarte also expressed appreciation for the collaboration and on the significance of the project in mainstreaming investments in climate resilient infrastructure, which will be crucial to help climate-vulnerable communities adapt to the continent’s changing climate conditions.