The Africa Finance Corporation (AFC) has secured a new commitment from the Development Bank of Southern Africa (DBSA) to its US$750 million Infrastructure Climate Resilient Fund (ICRF), in a deal signed at AFC’s ongoing The Africa We Build Summit in Nairobi on 24 April 2026.
The partnership represents a meaningful escalation in efforts to direct dedicated capital toward protecting Africa’s infrastructure from the accelerating effects of climate change — and a sign that African development institutions are increasingly aligning around the issue.
A Fund Built for the Climate Crisis
Managed by AFC Capital Partners (ACP), AFC’s asset management subsidiary, the ICRF was purpose-built to embed climate resilience across the full lifecycle of infrastructure assets — from initial planning and design through to construction and long-term operation. The fund targets key sectors including renewable energy, transport and logistics, digital infrastructure, and industrial development.
The urgency behind the initiative is stark. Africa loses an estimated 2% to 5% of its GDP annually to climate shocks, with adaptation needs running as high as $50 billion per year. Yet financing for climate adaptation has historically lagged far behind what is required.
Building a Coalition of Capital
DBSA’s entry adds institutional weight to a fund that has already attracted significant backing. The Green Climate Fund (GCF) has committed US$253 million — its largest equity investment in Africa to date — alongside the European Investment Bank (EIB), the Nigeria Sovereign Investment Authority (NSIA), and a number of African pension funds.
The fund is structured around a blended finance model, combining concessional and commercial capital to lower barriers that have long deterred private investment in climate adaptation. The GCF also provides first-loss capital and technical assistance for climate risk assessment, helping to de-risk investments and draw in additional institutional players.
AFC President and CEO Samaila Zubairu welcomed the partnership: “We are pleased to welcome DBSA as a key partner for the Fund. Their participation reflects strong African institutional alignment and marks a significant milestone in a partnership we look forward to deepening in the years ahead.”
DBSA CEO Boitumelo Mosako struck an equally direct tone: “Africa does not have the luxury of waiting. Climate shocks are outpacing adaptation finance, and vulnerable communities continue to bear the greatest burden. This partnership sends a clear signal that development finance institutions are pooling their mandates, capital, and risk appetite to achieve what neither institution can accomplish alone.”
Scale and Ambition
Through the ICRF, AFC Capital Partners expects to mobilise up to $3.7 billion in total financing and build a diversified portfolio of 10 to 12 infrastructure projects across the continent. Every investment undergoes rigorous climate risk screening — covering both physical risks such as extreme weather exposure and transition risks including emissions pathways and climate governance — ensuring resilience is baked in from day one.
For DBSA, the commitment aligns with its broader mandate to drive infrastructure-led development and mobilise private sector investment, particularly across Southern Africa, while contributing to continental adaptation goals.
Together, the two institutions are betting that climate-resilient infrastructure — properly financed and rigorously designed — can serve as both a shield against climate shocks and an engine for long-term economic transformation across Africa.