AFC Capital Partners plans to raise US$500m in the next twelve months and US$2 billion over the next three years. The ICRF will act as a direct investor and a co-investment fund to enhance the quality of African ports, roads, bridges, rail, telecommunications, clean energy, and logistics in the face of rising temperatures and sea levels due to climate change. The continent that has contributed the least to climate change is the most exposed because of housing, transport, industrial, and energy structures ill equipped to survive storms, floods, droughts, wildfires, and other hazards from extreme weather patterns. According to the UN Office for Disaster Risk Reduction, without urgent intervention, the cost of structural damage caused by natural disasters will increase to US$415 billion a year by 2030 from between US$250-300 billion now. Damage to rail tracks, roads, bridges, seaports, and power grids will add to an infrastructure deficit currently at US$130–170 billion per year. The UN Conference on Trade and Development estimated that a total of US$2.3 trillion worth of infrastructure is needed across Africa.
The mandate of AFC Capital Partners is aligned to AFC’s in offering attractive investment opportunities to the global development finance and commercial investor community seeking long-term returns through structures that protect African built infrastructure from climate risks. The newly created fund, incorporated in Mauritius, will employ traditional project finance and private equity structures, supported by a blend of concessional finance, grants and “soft equity.” AFC Capital Partners is a 100% owned subsidiary of Africa Finance Corporation, with a Board and Executive Committee independent of the Corporation. Its collective investment vehicles are guided by specific investment themes that mobilize third party funds for financing of infrastructure. AFC Capital Partners seeks to leverage the scale and breadth of Africa Finance Corporation’s experience across the investment lifecycle to enhance value-add for investors and offer unique access to impactful co-investment opportunities.