The European Investment Bank (EIB) has teamed up with the Africa Finance Corporation (AFC) to launch a $750 million fund aimed at building climate-resilient infrastructure across Africa, a continent disproportionately battered by climate change.
The Infrastructure Climate Resilient Fund (ICRF), managed by AFC’s investment arm, AFC Capital Partners (ACP), will prioritize projects in transport, clean energy, digital connectivity, and industrial development, with a focus on embedding climate adaptation measures at every stage. The EIB’s $52.48 million commitment, announced at the Finance in Common Summit in Cape Town, joins a $253 million anchor investment from the UN’s Green Climate Fund (GCF)—the largest single equity pledge the GCF has ever made in Africa.
The initiative marks a critical effort to address Africa’s dual challenges of infrastructure deficits and climate vulnerability. With the continent responsible for less than 4% of global carbon emissions yet facing severe droughts, floods, and rising temperatures, the fund seeks to close the gap between climate rhetoric and on-the-ground action. By blending public and private financing, the ICRF aims to de-risk projects for institutional investors while integrating tools like climate risk insurance and technical support for nations struggling to assess environmental threats.
“This isn’t just about building roads or power plants—it’s about ensuring those roads don’t wash away in the next flood and that power grids can withstand extreme weather,” said EIB Vice-President Ambroise Fayolle, underscoring the fund’s mission. The EIB’s involvement is strategic, designed to attract further capital by mitigating risks for private investors. Analysts note that sub-Saharan Africa currently receives less than 2% of global climate finance despite facing some of the worst climate impacts, a disparity the ICRF hopes to narrow.
The fund’s structure reflects a growing recognition that traditional aid models are insufficient for Africa’s needs. Alongside the GCF’s financial backing, which includes first-loss guarantees to cushion investors, the Nigeria Sovereign Investment Authority and two African pension funds have also signed on—a rare show of local institutional confidence. AFC President Samaila Zubairu stressed the fund’s broader economic implications: “Resilient infrastructure isn’t a luxury. It’s the foundation for job creation, trade, and long-term stability.”
One flagship project in the pipeline is the Lobito Corridor, a transnational trade route linking Angola, Zambia, and the Democratic Republic of Congo. The corridor, developed in partnership with the EU, US, and African governments, aims to streamline mineral exports and regional trade while incorporating climate-smart designs. Critics, however, caution that such large-scale projects often face delays or corruption risks, particularly in politically volatile regions.
The ICRF’s success will hinge on its ability to balance ambition with practicality. While the fund aims to mobilize up to $3.7 billion in total financing and create thousands of jobs, skeptics question whether blended finance mechanisms can truly overcome Africa’s chronic underinvestment in infrastructure. Others argue that climate resilience must go hand-in-hand with debt relief for nations already drowning in loans.
For now, the partnership signals a shift in how global institutions approach Africa’s climate crisis—moving from piecemeal projects to systemic solutions. As heatwaves and erratic rainfall disrupt livelihoods, the fund’s test will be whether it can deliver infrastructure that not only survives a changing climate but also empowers communities to thrive within it. With the first projects expected to break ground in 2026, the world will be watching to see if this collaboration becomes a blueprint—or another well-funded promise lost in translation.
