AFRICA: Acre launches $200 million fund for climate finance

By - Published on / Modified on

AFRICA: Acre launches $200m climate finance fund© kostasgr/Shutterstock

The investment company Acre Impact Capital is launching a $200 million investment fund dedicated to Africa. This mechanism supported by the European Investment Bank (EIB) will contribute to climate financing.

The European Investment Bank (EIB) says it is ready to contribute $40 million to the Acre Export Finance Fund I. It is an initiative of the London, UK-based investment firm Acre Impact Capital. The fund is dedicated to climate finance in Africa. As such, the facility will provide loans for the construction of green and resilient infrastructure.

The fund will target several key sectors, including renewable energy, access to clean water, health, agriculture, sustainable cities and green mobility. The Acre Export Finance Fund I “will provide unsecured commercial loans to complement long-term loans from international banks and guaranteed by export credit agencies to finance sustainable greenfield infrastructure projects,” the EIB says.

Read also- AFRICA: IPCC recommends 4 to 8 times more climate finance than the current rate

The Sustainable Development Finance Facility is being launched at a time when Africa needs climate finance more than ever. The Climate Policy Initiative estimates the continent’s climate finance needs at $277 billion. Africa has received only $30 billion in climate finance, with 50% allocated to 10 countries. And in this financing, the private sector has contributed only 14%.

Through its new fund, Acre Impact Capital is contributing to private sector participation in climate action in Africa. The investment company was founded in 2019 by Hussein Sefian, a sustainable finance specialist and former executive at several financial institutions, including BNP Paribas Corporate and Institutional Banking, a subsidiary of the French BNP Paribas Group.

Jean Marie Takouleu


More on the same theme

More on the same area

We respect your privacy

When you browse on this site, cookies and other technologies collect data to enhance your experience and personalize the content you see. Visit our Privacy Policy to learn more. By clicking "Accept", you agree to this use of cookies and data.

Newsletter AFRIK 21