Author: Allan Musumba

RMB and INDLU launch R1bn blended finance programme to transform South African real estate

Posted on by Allan Musumba

Rand Merchant Bank (RMB) and INDLU have announced the launch of a R1 billion Blended Finance Programme, to formalise and scale South Africa’s burgeoning affordable rental market. INDLU is a South African property financial technology company that empowers landowners to build, manage, and earn from high-quality rental housing. The programme aims to bridge the national housing gap—currently estimated at 2.3 million units—by providing sustainable, affordable credit to micro-developers who have historically been excluded from traditional banking sectors due to a perceived lack of formal collateral.

Alessandro Scalco of RMB sustainable finance said:

“The Indlu Blended Finance Programme represents a blueprint for how South African capital markets can drive large-scale, powerful social impact without compromising financial performance. This programme attracts capital to critical development areas like financial inclusion and affordable housing, empowering entrepreneurs to develop their own communities.”

RMB acted as the structurer and one of the lenders for the programme, utilising blended finance to support affordable housing. A key component of this structure was the catalytic funding provided by the FirstRand Foundation (FRF) and FSD Africa Investments (FSDAi), with FRF providing a R30 million concessional loan commitment to establish the construction warehouse facility and FSDAi acting as the anchor funder of this facility. FSDAi has also committed funding as co-funder of the catalytic mezzanine tranche in the securitisation. In addition, to FRF commitment, FNB have committed a sizeable R400m for the long-term financing of the programme.

Anne-Marie Chidzero, Chief Investment Officer of FSDAi said:

“Low-income affordable rental housing is one of Africa’s most overlooked, and most bankable, real-economy markets. With INDLU, we are using catalytic capital to do what FSDAi was built to do: anchor a new asset class, prove it to institutional investors, and create a replicable pathway that can finance dignified housing well beyond South Africa’s borders.”

This programme expands access to affordable housing finance for small-scale, primarily black and women property owners. By addressing early-stage construction and tenanting risk, FSDAi and FRF’s catalytic funding unlocks private capital and ensures cost benefits are passed directly to developers and communities.

Cobus Truter, CEO of INDLU said:

“Our bold ambition is to fundamentally change the landscape of informal settlements. By turning each tile in the urban mosaic into formalised, dignified infrastructure, we are building better African cities from the ground up. “The R1 billion deployment is expected to have a profound multiplier effect on the economy through significant job creation and social upliftment.”

To date, the model has already delivered over 2 200 high-quality rental units in areas such as Tembisa, Mamelodi, and Cosmo City, proving the commercial viability of the “backyard” real estate sector. While INDLU has successfully facilitated approximately R311 million in financing to date, the new platform is designed to meet a massive surge in demand.

INDLU has identified an immediate project pipeline exceeding R915 million over the next 12 to 24 months, with a specific goal to raise R500 million for property entrepreneurs within the first year. The model has already supported over 1 000 short-term construction jobs and nearly 400 permanent roles through local SMEs. Furthermore, it serves as a powerful tool for gender equity, with 64% of INDLU’s current landowners being female. “By ensuring every unit is integrated into formal municipal infrastructure—including water, electricity, and sanitation—the programme significantly improves urban living standards and safety,” Truter added.

INDLU provides landowners with microfinance loans for construction, managed through a “closed-loop” digital ecosystem where the Indlu software application automates rental collection and loan servicing. This ensures transparency for investors and steady income for property owners.

Catalyst Fund Deepens Bet on Africa’s Climate Resilience Founders

Posted on by Allan Musumba

IFC, FASA, Shell Foundation, Trafigura Foundation, SpeedInvest, Blink Impact, We-Fi, and private investors join the fund which reaches $30m to back founders building climate tech solutions in Africa.

Across Africa, climate shocks are already reshaping food systems, supply chains, energy access, and infrastructure, and a new generation of founders is building the practical, scalable solutions communities need to adapt. Catalyst Fund, the pan-African venture fund and venture builder backing founders from pre-seed to Series A, has announced the completion of its second close, with total commitments now reaching $30 million, bringing the fund closer to its target fund size and adding fresh momentum to its mission of strengthening climate resilience across the continent. Led by partners Maelis Carraro, Maxime Bayen, Olúwatóyìn Emmanuel-Olubake, and Amolo Ng’weno, the fund plans to invest in 40 ventures across Africa.

The second close brings together IFC, FASA, Shell Foundation, Trafigura Foundation, Speedinvest, Blink Impact, and a group of high-net-worth individuals, joining early backers FSD Africa, Cisco Foundation, and others who validated the thesis at the first close. It also brings in Women Entrepreneurs Finance Initiative (We-Fi) to help the fund increase its pipeline of women-led companies. Catalyst Fund expects to reach final close later this year.

“Climate adaptation is one of the defining investment themes of the next decade, especially in Africa, where the need is immediate, and the entrepreneurial talent is extraordinary. This second close allows us to double down on our mission: backing ambitious founders building practical, scalable solutions for a climate-changed world, and supporting them not just with capital, but with the hands-on venture-building support they need to grow.” — Maelis Carraro, Founder & General Partner, Catalyst Fund

The portfolio of 28 fast-growing companies already shows the breadth of that thesis in action. Keep It Cool, a 2024 Earthshot Prize winner, is building solar-powered cold-chain infrastructure for fisherfolk and poultry farmers in Kenya. MazaoHub, a Tanzanian agritech startup, combines AI-powered soil intelligence with on-the-ground agronomy support and digital market access to help smallholder farmers improve yields and livelihoods. Bekia runs a tech-enabled circular economy platform in Egypt connecting waste producers – households and businesses – with collectors, logistics partners, and trusted recyclers to turn recycling into a profitable, closed-loop. These are the kinds of practical, scalable businesses Catalyst Fund believes will deAfrica’sica’s climate resilience economy.

“Across Africa, entrepreneurs supported through Catalyst Fund are strengthening livelihoods, expanding access to essential services, and creating quality jobs in underserved communities. Through IFC’s partnership with Catalyst Fund, we are mobilizing capital and expertise to help these early‑stage ventures scale sustainably, attract private investors, and deliver lasting impact for people and markets.”

— Farid Fezoua, Global Director for Disruptive Technologies, Services, and Funds, International Finance Corporation (IFC)

“FASA’s mission is to reduce the funding gap faced by agri-SMEs in Africa by mobilizing catalytic capital, empowering investment managers, and fostering a supportive ecosystem. We chose Catalyst Fund because their investment strategy and their embedded venture-building model perfectly address the critical gaps faced by early-stage climate entrepreneurs. Beyond our $5 million junior equity investment to derisk the fund and unlock additional funding from co-investors, we are committed to providing targeted technical assistance to strengthen the fund’s capacities and support its most promising agri-startups”

— Mamadou Ndao, Investment Director, FASA

The company-building model is central to Catalyst Fund’s approach. Rather than acting as a passive investor, the firm works alongside founders as a true co-builder from the earliest stages of the journey. By pairing equity investment with embedded venture-building support from BFA Global, Catalyst Fund helps companies navigate the priorities that matter most – from refining strategy and product to hiring, commercial traction, partnerships, follow-on fundraising, and operational scale. The model is designed to keep incentives aligned from day one and give founders the kind of practical support that is often missing in early-stage investing.

“Climate shocks are already a reality for millions of people across Africa and founders building adaptation solutions urgently need access to the right kind of early support. Catalyst Fund backs entrepreneurs early and works alongside them to turn proven ideas into scalable businesses. We’re pleased to support this second close and help channel more capital to founders addressing critical climate resilience needs.” — Jonathan Berman, CEO, Shell Foundation

The second close also widens the fund’s circle of backers, bringing in a broad mix of development finance, corporate, family offices, and foundations – including some investors making their first commitment to Africa.

“We are proud to make our first impact investing commitment through Catalyst Climate Resilience Fund I, backing bold African founders building the adaptation solutions that vulnerable communities need most. By investing in the junior tranche, we aim to be catalytic, helping unlock additional capital into a space that is critical, yet chronically underfunded.” — Dario Soto-Abril, Trafigura Foundation

The firm is betting that climate resilience in Africa is not just an impact story, but one of the most important venture opportunities emerging on the continent. As climate shocks intensify, demand is rising for affordable, scalable solutions that help communities and economies adapt. Catalyst Fund believes the next generation of category-defining African startups will be built in that gap – and that backing them early can deliver outsized impact and strong returns for investors.

“Backing a first-time strategy early is where catalytic capital does its most important work. We committed to Catalyst Fund before first close, helping build the track record that has shown climate adaptation in Africa is investable from pre-seed to Series A, where the need is greatest, and capital is scarcest. The fund’s second close is a strong validation of that early conviction, and we’re pleased to see it attracting the broader investor base needed to scale climate adaptation investing across Africa.”

— Juliet Munro, Director, Early-Stage Finance, for FSD Africa and FSD Africa Investments (FSDAi)

FSD Africa and Jubilee Group partner in an effort to double Jubilee’s customer base and expand insurance access across the region

Posted on by Allan Musumba

Specialist development finance agency FSD Africa and East Africa’s largest and composite insurer Jubilee Group have entered a Memorandum of Understanding (MoU), marking FSD Africa’s first partnership with an insurer, aimed at advancing financial inclusion by expanding access to insurance and investment solutions, with a particular focus on undeserved segments including Small and Medium Enterprises (SMEs).

This partnership will initially be implemented in Kenya as a strategic launch market before being scaled across Jubilee’s wider regional footprint. It forms part of the company’s broader growth agenda to double its customer base by deepening penetration across its integrated financial services offering and strengthening its role in delivering accessible and inclusive solutions across East Africa.

Under the MoU, Jubilee will work with BimaLab, FSD Africa’s flagship insurtech accelerator, to co-create and pilot inclusive, tech-driven solutions to reach millions of underserved and low-income Kenyans, opening a new customer segment for the Jubilee Group.

The partnership will operate through the BimaLab’s Insurtech-Insurer Partnership Framework, which pairs high-impact BimaLab alumni insurtechs with an established insurer to build, test, and launch joint tech enabled products in real markets.

The initiative will be rolled out through J-Hub, the Group’s innovation and technology arm, which accelerates development, testing and deployment of digital and AI-powered solutions across the business. By leveraging J-Hub’s innovation capabilities alongside FSD Africa’s expertise in inclusive finance, the partnership will fast-track the design and scaling of customer-centric solutions that address the evolving needs of underserved communities.

Speaking during the MOU signing, Jubilee Group Deputy CEO, Juan Cazcarra emphasised the need to expand insurance penetration and coverage across the region to ensure that the large segments of the population currently excluded for a variety of barriers are brought into insurance protection.

“Driving access is a key priority for our business. Too many people in East Africa remain outside the protection of insurance and financial security due to barriers we must continue to address. This partnership allows us to begin closing that gap by reaching segments that have previously been excluded. We will continue to pursue and scale innovative solutions that make it possible for more people across the region to participate in lasting financial security, better health outcomes and long-term well-being.” said Juan.

FSD Africa’s Chief Adaptation & Resilience and Strategy Integration Officer, Kelvin Massingham, said the partnership strongly aligns with BimaLab’s vision.

“A large majority of Africans face rising climate, health and economic risks with no insurance to fall back on. This is why closing Africa’s protection gap is one of the most urgent resilience challenges of our time. We built BimaLab to back the innovators solving it and when their solutions reach scale through partners like Jubilee, that is resilience made real for millions,” Massingham said.

Through a competitive process, Bimalab Insurtechs will work with Jubilee Group to co-design solutions for three priority areas: embedded and bundled distribution, SME ecosystems, and health, wellness & engagement. The shortlisted BimaLab insurtechs are expected to be named in August this year.

Kenya has achieved world-leading financial inclusion, with 85% of adults using a formal financial service, yet insurance remains the sector’s deepest gap. Insurance penetration in 2025 was only 2.4% of GDP against a global average of 7%. Health shocks, in the form of out-of-pocket medical costs, are estimated to push 1.5 million Kenyans below the poverty line each year.  The country’s SMEs, estimated at 7.5 million and employing 15 million people, are highly vulnerable to economic shocks, as witnessed during the COVID pandemic, where roughly a third shut down.

Launch of green project preparation facility to unlock investment in climate infrastructure in Ghana

Posted on by Allan Musumba

FSD Africa, the British High Commission, and the Ghana Infrastructure Investment Fund (GIIF) have launched a Green Project Preparation Facility (PPF) – a platform designed to bridge Ghana’s infrastructure financing gap by preparing climate-aligned projects for investment.

The Facility was formally launched yesterday evening in Accra. The PPF, initially capitalised with a commitment of GBP5mn from UK Government, was first announced during President H.E. John Dramani Mahama’s visit to the United Kingdom as part of the UK–Ghana Growth Partnership. The facility will be hosted and managed by FSD Africa, in partnership with GIIF. It is anticipated that the PPF will grow in size, with support from other development partners in due course.

The PPF seeks to build a robust investible pipeline of green infrastructure projects, reduce development risk and time to financial close, and mobilise private capital while strengthening national delivery systems.

Mr. Nana Dwemoh Benneh, Chief Executive Officer of the GIIF, highlighted the significance of the new Facility for Ghana’s broader climate investment agenda.

“We are delighted to be part of this important initiative with FSD Africa and sincerely grateful to the FCDO for its support in making this facility possible. The PPF is both timely and strategic. It presents a significant opportunity for GIIF and FSD Africa to collaborate in developing a robust pipeline of bankable, climate-resilient, and investment-ready infrastructure projects. By strengthening project preparation capabilities across both the public and private sectors, the facility has the potential to unlock much-needed climate and infrastructure finance, crowd in private capital, and accelerate Ghana’s transition towards a more resilient, low-carbon, and sustainable economy”.

The British Deputy High Commissioner to Ghana Ms. Terri Sarch reaffirmed the UK’s long-standing commitment to supporting Ghana’s economic development, emphasising that climate-resilient infrastructure is central to shared prosperity.:

“The UK–Ghana partnership is about turning shared ambitions into real results. Through the Green Project Preparation Facility, we are delighted to be partnering with FSD Africa and the Ghana Infrastructure Investment Fund (GIIF) to turn strong Ghanaian ideas into investable projects. Further, the PPF will help unlock much needed finance toward climate-resilient infrastructure, improving Ghana’s ability to tackle increasing challenges posed by climate change.” said Ms Sarch

Ghana, in common with many of its West African neighbours and global peers, faces intensifying climate impacts. Shifting rainfall patterns, rising sea levels and increased flood frequency place growing pressures on urban infrastructure, energy systems and rural livelihoods. Around a third of Ghana’s electricity generation relies on hydropower, directly exposed to drought and erratic rainfall, while over 40 per cent of the workforce depends on climate-sensitive agriculture. Ghana’s exposure to these shocks makes investment in climate-resilient infrastructure an immediate development priority.

FSD Africa is a specialist development agency working to make finance work for Africa’s future. Headquartered in Nairobi, they operate across more than thirty African countries through a range of funds, institutions, and projects. The PPF will be hosted and managed by FSD Africa, in partnership with the Ghana Infrastructure Investment Fund (GIIF). FSD Africa brings several years of direct in-country engagement, including advisory support to the Ministry of Finance on debt management and domestic capital market development, co-development of the Ghana Green Finance Taxonomy, capacity-building for the National Insurance Commission on ESG frameworks, and ongoing partnership with the GIIF to establish a dedicated Climate Sub-Fund.

Mark Napier, CEO of FSD Africa, welcomed the launch as a pivotal step for Ghana’s climate finance ecosystem:

“We are privileged to extend our collaboration with Ghana by hosting the Green Project Preparation Facility. We hope that the PPF will prove instrumental in crowding domestic private capital into a series of important projects that will add value to the economy and boost Ghana’s climate resilience. We look forward to the partnership with GIIF on this highly impactful initiative”.

The PPF is open to both public and private sector project developers working on climate-aligned infrastructure in Ghana. Projects will be assessed on the basis of their climate impact, financial viability and potential to attract investment, and are expected to cover a range of priority sectors, including renewable energy, waste and water management, urban infrastructure, transport, housing and social infrastructure.

An initial pilot cohort of projects is already in active preparation. The full PPF pipeline will be developed through a structured, transparent appraisal process in partnership with the GIIF and other Ghanaian stakeholders. Further details on eligibility criteria, the application process and contacts can be found at http://fsdafrica.org/

Africa’s Green Transition To Create Up to 84m Jobs by 2050

Posted on by Allan Musumba

Africa’s green transition could generate up to 84.5 million jobs by 2050 but without concerted policy action the benefits risk entrenching inequality rather than reducing it.

This is the key finding of a new report, Unlocking Africa’s Green Transition: Opportunities Towards a Green and Inclusive Workforce, launched by financial sector development agency FSD Africa in partnership with Shell Foundation, a philanthropic foundation working to raise incomes while lowering emissions, and Shortlist, a talent advisory firm working across Africa. Shell Foundation’s participation is funded by the UK Government via the Transforming Energy Access (TEA) platform.

A once-in-a-generation opportunity

The report shows that Africa’s green economy is already taking shape, with 3.8 to 7.9 million jobs projected by 2030, rising to between 65.9 and 84.5 million by 2050. Unlike other regions, Africa’s transition will be driven not by large infrastructure projects, but by decentralised, service-led industries, including clean cooking, off-grid solar, waste recycling, and electric mobility. These sectors are expected to create most jobs through installation, distribution, and last-mile services, providing critical entry points for youth, women, and low-income workers.

A critical workforce gap threatens progress

Despite the scale of the opportunity, the report highlights a major constraint: Africa lacks the workforce capacity needed to deliver the transition at scale.

  • Africa’s renewable energy workforce accounts for just 2% of the global total, despite the continent holding 60% of the world’s best solar resources
  • Only 5% of African youth have completed formal vocational training
  • Less than 1% of climate finance is directed toward skills development, creating a major bottleneck

Without urgent investment in training and workforce systems, projects will stall, rely on imported expertise, and fail to deliver local economic benefits, warns the report.

“Unlike other regions, the employment dividend of Africa’s green transition will be realised through service value chains, not construction sites, and we have to invest accordingly,” said Kevin Munjal, Director, Development Impact, at FSD Africa. “Finance directed towards sectors such as clean cooking, distributed solar, waste recycling and e-mobility will generate substantially more employment than utility-scale infrastructure. But we also need the right policy frameworks to make that happen.”

Most green jobs will be informal raising risks of inequality

The report also challenges assumptions about the nature of green employment:

  • 86% of green jobs in 2030 are expected to be informal
  • The fastest-growing sectors: clean cooking, waste recycling, and solar home systems — are those with the lowest barriers to entry but weakest job protections
  • Women and young people are expected to benefit significantly from job creation but largely in informal, lower-value roles

Without targeted interventions, most workers will remain outside formal labour protections. Women in particular are concentrated in commission-based, lower-value roles without progression pathways or social protection.

“Africa’s green transition represents one of the most significant economic opportunities of our generation. However this vision can only be realised if the green economy is designed to work for the lower-income and informal workers who power our society – and in particular for the women,” said Richard Gomes, Chief Programme Officer at Shell Foundation. “The prize here is not ‘more green jobs’. The prize is future-proofed jobs anchored in sectors that will continue to grow as the world navigates compounding climate, energy and economic disruption.”

Policy and financing decisions will determine the outcome

The report makes clear that the difference between high and low job scenarios is not inevitable, it is the result of policy choices. If governments and investors act decisively, Africa could create nearly 8 million green jobs by 2030. Without action, the figure could be less than half that level and by 2050 the result would be 18.5m fewer jobs.

Key priorities include:

  • Redirecting finance toward high-employment sectors such as clean cooking, distributed solar, waste and e-mobility
  • Investing in green skills systems, including modular training and recognition of informal skills
  • Embedding workforce and gender inclusion targets into climate finance
  • Extending social protection to informal workers, including through mobile platforms
  • Developing innovative financing mechanisms to unlock capital for skills development

“The right human capital is an important input for successful climate-positive growth, so we have to be sure Africa’s workforce is ready for what’s needed. But high-quality jobs are also an exciting benefit of the green transformation. Now we have an even better idea where these millions of jobs and livelihood opportunities will come from and what we can do to make sure the market is ready,” said Paul Breloff, Co-Founder & CEO of Shortlist Africa.

No one size fits all

The report takes an in-depth look at three countries: Kenya, Nigeria and South Africa, concluding that there is no one green transition and a single continental strategy would fail. Key findings include:

  • Nigeria’s projected 2030 green workforce is around 87% informal and driven by nano-enterprises
  • South Africa’s is around 70% formal and shaped by regulated procurement frameworks
  • Kenya’s occupies a distinctive middle ground anchored by mobile money infrastructure and devolved governance.

Overall, East and Southern Africa are projected to capture 58% of 2050 high-scenario green employment despite housing only 40% of Sub-Saharan Africa’s population, reflecting deeper enabling conditions already in place.

From research to action: launching the Green Jobs Innovation Hub

To help address these barriers, FSD Africa is launching the Green Jobs Innovation Hub, aimed at mobilising finance and partnerships to scale workforce solutions across the continent. The initiative will focus on unlocking new financing models to ensure that workforce development keeps pace with investment in green infrastructure.

A call to governments, investors and industry

The report calls on stakeholders across the ecosystem to act urgently:

  • Governments to integrate jobs and skills into climate and industrial strategies
  • Development finance institutions to embed workforce investment in funding decisions
  • Private sector actors to invest in training and improve job quality
  • Training providers to modernise curricula for emerging green roles

Only a coordinated response, the report warns, will ensure the green transition delivers both climate outcomes and broad-based economic opportunity.

FSD Africa welcomes three new board members

Posted on by Allan Musumba

FSD Africa is pleased to welcome three new Non-Executive Directors to its Board: Rolake Akinkugbe-Filani, Ramatoulaye Adama Diallo and Cheikh Oumar Seydi.

Our new Board members bring perspectives and expertise aligned with FSD Africa’s mandate and operating context, including market development, capital mobilisation and governance in complex, multi-stakeholder and multi-donor environments.

Together, they have worked with and alongside development partners, institutional investors, governments, and the private sector to align interests and support the delivery of long-term, system-level outcomes. They bring depth in energy and infrastructure finance, digital financial systems, and development finance, complementing our existing Board.

Meet our new board members

Rolake Akinkugbe-Filani brings deep expertise in energy finance, infrastructure, and investment banking across more than 30 African markets. As the founding CEO of EnergyInc Advisors, and through senior roles at Ecobank, FBNQuest, Mixta Africa (now part of ARM), and Zenith, she has structured transactions and mobilised capital in complex environments. Her background will support FSD Africa’s work to build investible pipelines and develop financial instruments that channel capital into energy and infrastructure at scale..

Ramatoulaye Adama Diallo (Rama) brings extensive leadership across financial services, fintech, and digital platforms, with particular insight into how digital systems are reshaping market participation and access. She has held CEO, CFO, and COO roles across Africa, Europe, the Middle East and the United States, scaling regulated financial institutions and expanding financial inclusion. Her background, including roles at Morgan Stanley, Orange, Etisalat, and Google, combines financial expertise with a strong understanding of how digital financial systems are evolving. This will support FSD Africa’s work to connect financial market development with the continent’s fast-evolving digital ecosystem.

Cheikh Oumar Seydi brings more than three decades of leadership across development finance, investment, and philanthropy in emerging markets. At the International Finance Corporation, he led investment and advisory operations across Sub-Saharan Africa, and at the Gates Foundation he oversaw the expansion of programmes across the continent. He brings deep experience in building partnerships and delivering at scale across public and private sectors, which is central to FSD Africa’s work to shape markets and unlock capital.

Looking ahead

These appointments bring immensely valuable experience to FSD Africa as it continues its work of transforming Africa’s financial markets and supporting long-term growth and resilience across economies, businesses, and communities.

FSD Africa Board Chair, Dr Frannie Léautier, said:  “We warmly welcome Rolake, Rama and Cheikh Oumar to our Board. As Africa’s financial landscape evolves, the need for bold, and forward-looking governance has never been greater. Their insight and collective experience will help shape the future of finance in Africa and deepen our impact at scale.”

 

FSD Africa Investments and Allied Climate Partners commit $50 million in catalytic capital to anchor the African Transition Acceleration Fund (ATAF)

Posted on by Allan Musumba

March 12, 2026 | Nairobi, Kenya— FSD Africa Investments (FSDAi) and Allied Climate Partners (ACP) have jointly announced their combined anchor commitment of $50 million in catalytic capital to the first close of the African Transition Acceleration Fund (ATAF), a catalytic vehicle managed by African Infrastructure Investment Managers (AIIM). The fund, which is targeting $200 million, is designed to accelerate investment in Africa’s energy transition, vitalise economies, and create sustainable jobs. ACP and FSDAi are joined by the International Finance Corporation’s (IFC) Frontier Opportunities Fund; and several senior equity co-investors including the IFC, KfW, Proparco, and other private investors.

“Africa’s energy transition will not be financed by waiting for projects to become safe enough for conventional capital,” said Anne-Marie Chidzero, FSDAi’s Chief Investment Officer. “Someone has to go first. This partnership with ACP – and our anchor commitment to ATAF – is us going first.”

Across Africa, most infrastructure funds are not structured to commit significant capital to early-stage project development. As a result, promising opportunities stall before they can launch, scale, and reach bankability. ATAF was purposefully created through a structured market assessment and selection process to focus capital on this gap, and provide support to economically viable platforms and companies at the earliest and most critical stages of project development and company growth.

By anchoring the fund with catalytic capital, FSDAi and ACP aim to help close this gap, alongside partners. The fund seeks to invest in early-stage developers and companies looking to advance climate infrastructure projects toward bankability and scale across three core energy transition themes:

  • Clean electrons such as on-grid and off-grid renewables, energy efficiency, and transmission
  • Sustainable transport such as electric vehicles and low-carbon transport systems
  • Clean molecules such as green ammonia, fertilizers, and biofuels

With its pan-African strategy, ATAF will invest with a focus on accelerating projects, attracting and strengthening management teams, and building platforms capable of scaling and attracting commercial capital. The fund intends to generate meaningful environmental, economic, and social benefits, including tens of thousands of green jobs, emissions reductions, and expanded access to clean power, green fuels, and low-carbon transport.

This investment builds upon the partnership established in 2024 between FSDAi and ACP which brings together two mission-aligned and complementary investment organisations. FSDAi, backed by the UK’s Foreign Commonwealth and Development Office (FCDO), provides patient, risk-bearing capital and deep expertise in African financial market development. ACP, utilizing philanthropic capital, brings experience in architecting and anchoring catalytic climate investment funds with junior equity across emerging markets to promote sustainable development and positive climate outcomes. Together, FSDAi and ACP are backing ATAF to accelerate Africa’s energy transition, send a market signal, and help prove the model so more investors follow.

“ATAF is a testament to the power of purposeful partnership,” said Ahmed Saeed, CEO of Allied Climate Partners. “Together with FSDAi and others, we will empower ATAF to catalyse new markets and accelerate transformative infrastructure platforms and companies – creating jobs, powering economies, and strengthening communities across Africa at risk of the devastating impacts of a changing planet.”

ATAF will be managed by AIIM, one of Africa’s most experienced infrastructure investment managers with more than two decades’ experience investing across renewables, transport, and digital infrastructure on the continent. AIIM’s team of more than 40 locally-based investment professionals brings the execution capability and sectoral depth that early-stage energy transition investment demands. ATAF will be led by Lisa Pinsley, a seasoned investor with 18+ years’ experience investing in energy across Africa.

ATAF is the first investment of the FSDAi-ACP strategic partnership, and complements FSDAi’s wider portfolio of investments in African green growth, including InfraCredit Nigeria, the Acre Impact Fund, the Africa Local Currency Bond Fund (ALCB Fund), and ARM-Harith’s Africa Climate Transformation (ACT) Fund. Across these commitments, FSDAi’s consistent aim is to crowd in private capital and establish new financing channels for Africa’s energy and climate transition.

ATAF is ACP’s first catalytic investment in Africa. ACP has also supported SEACEF II (managed by Clime Capital) and the Green Investments Partnership (managed by Pentagreen) in Southeast Asia, and the Caribbean Community Resilience Fund (managed by Sygnus Capital) in the Caribbean.

Africa’s green growth needs skills: Where and how can finance help?

Posted on by Allan Musumba

Next week, FSD Africa will participate in Africa’s Green Economy Summit (AGES). Our presence reflects a clear strategic view: Africa’s green transition will only succeed if investments in climate-aligned sectors are matched with investments into building the  workforce required to deliver them. Financial markets cannot deepen around green growth without trained and skilled workers capable of sustaining it.

Across the continent, momentum is building. Countries like Kenya, Ghana, South Africa and Morocco have recognised the green jobs skills gap and have developed country strategies to this . The African Development Bank and African Union are also pushing for green skills as part of their commitment to driving green and inclusive growth across the continent.

Tackling Africa’s green skills gap will require cross-sector collaboration and coordination among stakeholders, including skilling and training partners; employers and industry associations; government regulators and policymakers; and funders and investors. All this effort will be happening against a backdrop of dwindling public finance and development funding.

In light of this, FSD Africa has begun exploring innovative and sustainable financing mechanisms that could enhance Africa’s green workforce development. The green jobs financing imperative is what underpins our participation at this year’s Africa Green Economy Summit, between 24 – 27 February in Cape Town, South Africa

Why financial markets matter for green skills

Our mandate is to strengthen financial markets so they can mobilise domestic capital, crowd in private investment, and support sustainable economic growth. Financial sector deepening depends not only on liquidity and regulation, but on productive enterprises and stable income generation. Green sectors such as renewable energy, electric mobility, and climate-smart agriculture are not only capital-intensive, they are also labour-dependent. The quality and availability of skills affect productivity, cost structures, and long-term viability.

Recent analysis in our 2024 Forecasting Green Jobs in Africa report estimates that more than three million direct green jobs could be created across key value chains by 2030. This presents a significant opportunity to address vast swathes of unemployment across Africa, particularly the youth. However, without deliberate investment in vocational training systems, certification pathways, and workforce planning, many roles will remain difficult to fill, and project pipelines will face constraints.

At AGES, we hope to engage partners on several critical questions:

  • How can workforce planning be embedded into climate infrastructure financing from the outset?
  • What financing mechanisms can support large-scale skills development linked to green sectors?
  • How can domestic institutional capital, including pension funds and insurance assets, align with long-term human capital investment strategies?
  • And where are the most pressing labour bottlenecks already emerging across markets?

FSD Africa will be aggregating these perspectives and partnerships into a Green Jobs Innovation Hub that aims to translate research insights into investable, demonstrable green workforce solutions. Our approach focuses on strengthening labour market data to inform capital allocation, convening stakeholders across finance and workforce ecosystems, and designing demonstration models that treat skills as an investable component of green growth rather than a standalone social expenditure. We believe that integrating human capital considerations into financial structuring will be key to improving project outcomes and strengthening market resilience.

As a Silver Sponsor at AGES, we see the Summit as more than a platform for dialogue — it’s an opportunity to shape the evolution of green finance. We are keen to connect with investors, development finance institutions, governments, asset managers, and workforce actors who recognise that green growth development is embedded into investment strategies — not treated as an afterthought. We are particularly interested in building partnerships that will enable us to pilot innovative financing approaches that can link capital deployment with measurable employment outcomes.

Africa’s green transition offers an opportunity to decarbonise economies while deepening financial markets and expanding domestic capital mobilisation. Realising that opportunity requires aligning capital with capability. We look forward to engaging in Cape Town on how to ensure that financial flows translate into productive, inclusive growth supported by the right skills at scale.

 

 

Nature-based carbon projects in Ethiopia invited to apply for support from The Carbon Accelerator Programme for the Environment (CAPE)

Posted on by Allan Musumba
CALL FOR APPLICATIONS

Addis Ababa, Ethiopia, 9 September 2025: The Carbon Accelerator Programme for the Environment (CAPE), in partnership with FCDO Ethiopia, is pleased to announce that it is seeking applications from impactful nature-based carbon and biodiversity projects in Ethiopia for its next cohort.

Local nature-based carbon project developers are invited to submit an Expression of Interest (EOI) via this link: https://forms.gle/Yq9eQ4Pc2HyCfNLB8 no later than 17:00 EAT on Friday 26th September.

CAPE is an initiative being delivered by FSD Africa in partnership with Finance Earth and the African Natural Capital Alliance (ANCA) to mobilise investment into projects across Africa to cut carbon emissions and protect biodiversity while also benefitting local communities.

Who is eligible for this cohort?

  • Location: Projects located in Ethiopia
  • Project Type: Nature-based carbon projects with strong biodiversity and local community impact potential
  • Development stage: We encourage projects at any stage of their development journey to apply

CAPE provides project development support and transaction advisory services to accelerate high-integrity, nature-based projects towards investment.

The first cohort of CAPE is already underway, with support being provided to four projects in Kenya, Tanzania, Zambia and Nigeria.

CAPE is particularly interested in projects that:

  • Have a clear pathway to financial viability
  • Are considering biodiversity and social impact beyond carbon standard requirement (e.g., Verra CCB)
  • Intend to use a robust standard for validation and verification
  • Can be scaled and/or replicated

By applying, you wlll be considered for tailored support from the CAPE team to strengthen your project’s technical, financial, and impact foundations, and prepare it for investment.

FSD Africa at ACS 2

Posted on by Allan Musumba

It is two years since African leaders gathered in Nairobi for the first African Climate Summit. The resulting pledges, amounting to $26bn, were strong evidence of a real commitment to Africa-led climate solutions. But even more important was the summit’s assertion of African self-determination and specifically the need to mobilise Africa’s domestic private capital in the continent’s climate efforts.

As leaders gather again for the second Africa Climate Summit (ACS2) in Addis Ababa, the world looks very different. There is huge global uncertainty, and the economic headwinds are even stronger. Never has the vision set out at that first summit, and in the subsequent Nairobi Declaration, of a green path to economic growth that delivers both prosperity and environmental benefits, been more relevant and more important.

This is why we wholeheartedly support the aims of ACS2 and hope to see emerging from it an even greater consensus around the value of investing in climate. The summit is also a chance to set out even more compellingly the argument that investing in climate and economic growth are not mutually exclusive but rather complementary and to make the case for greater private sector, particularly domestic, investment in the continent.

The recent cuts to overseas aid have only added to the urgency for the continent to become more economically independent and resilient. That will require stronger domestic financial markets and more long-term financing in local currency to make growth less reliant on international finance, including aid, and more resilient to economic shocks, not least those resulting from climate change.

Indeed, our belief that a green path to growth will deliver a stronger and more resilient economy and that mobilising domestic private capital will be key to this, are central to FSD Africa’s mission to make finance work for Africa’s future. This approach is embodied in our new strategy which is based around three key imperatives: increasing economic opportunity, protecting the environment and increasing resilience to climate and economic shocks. We have an ambitious target to mobilise and catalyse £10bn of private capital for sustainable development, 84% of it in local currency.

But the strategy also reflects the immediate problems facing many countries in Africa with a focus on sustainable debt, more adaptation finance, job creation and the need for more climate finance to power the energy transition – all areas we will be discussing across the more than half a dozen events we are hosting or co-hosting at ACS2.

Above all this summit is an opportunity to show how Africa can be at the forefront of finding solutions to the twin threats of climate change and nature loss by highlighting proven Africa-led climate solutions and the continent’s bold efforts to re-green its landscapes. In that spirit, we and our partners will also be highlighting examples of the extraordinary financial innovation that is taking place across different parts of the financial system and presenting some of the transactions that have resulted.

Please join us at ACS II in Addis Ababa from 08th to 10th September to discuss these issues