The Africa Finance Corporation (AFC) and the Green Climate Fund (GCF) have launched a $690 million financing facility aimed at helping African countries strengthen climate resilience, expand clean energy and develop infrastructure capable of withstanding climate-related risks.
The Africa Sovereign Climate Facility (ASCF) was officially launched following a signing ceremony in South Korea, bringing together concessional and commercial financing to support climate-related investments across the continent.
The first phase will target Angola, Benin, Côte d’Ivoire and Nigeria, countries identified as facing significant climate vulnerabilities and infrastructure development challenges.
The facility will finance projects in clean energy, food and water security, public health systems and climate-resilient infrastructure. It will also provide technical assistance and capacity-building support to help governments integrate climate considerations into national development strategies and implement their commitments under the Paris Agreement.
The financing structure combines $280 million in concessional funding from the GCF with a parallel commercial facility of up to $260 million to be structured and fully funded by AFC. The commercial financing will offer loan tenors of up to 10 years through the respective finance ministries of participating countries.
The initiative is designed to address the financing gap between national climate commitments and the implementation of bankable infrastructure projects, while encouraging greater participation from private investors.
“The infrastructure we build today must both power Africa’s growth and withstand the climate pressures of tomorrow,” said Samaila Zubairu, President and Chief Executive Officer of AFC.
He said the partnership would combine concessional financing with AFC’s project development expertise and capital to help governments translate national priorities into investments in energy, food and water systems, and resilient infrastructure.
Catherine Koffman, GCF Regional Director for Africa, said the facility would help participating countries turn their climate priorities into investable projects, while strengthening sovereign investment systems and expanding access to climate finance.
Over its operational lifetime, the facility is expected to reduce, avoid or remove approximately 5.78 million tonnes of carbon dioxide equivalent emissions. Its adaptation and resilience interventions are also projected to directly benefit 5.2 million people.
Beyond financing individual projects, the programme aims to strengthen governments’ capacity to design and implement climate-aligned investment and economic development plans.
The launch builds on the existing partnership between the two institutions. In 2023, the GCF committed $253 million to AFC Capital Partners’ Infrastructure Climate Resilient Fund to attract additional institutional and private investment into climate-resilient infrastructure.
Established in 2007, AFC has invested more than $20 billion across 36 African countries, with operations spanning power, transport, heavy industry and natural resources.
