First phase will focus on Angola, Benin, Côte d’Ivoire and Nigeria
Africa Finance Corporation (AFC) and the Green Climate Fund (GCF) have launched the Africa Sovereign Climate Facility (ASCF), a US$690 million programme designed to scale up climate finance and accelerate low-carbon, climate-resilient development across Africa. The facility was launched at a signing ceremony in Korea.
The programme will combine technical assistance, capacity building and large-scale blended finance to support governments in integrating climate considerations into national development planning and accelerating the implementation of their Nationally Determined Contributions (NDCs).).
The first phase will focus on Angola, Benin, Côte d’Ivoire and Nigeria, countries facing significant climate vulnerabilities, infrastructure deficits and rising greenhouse gas emissions. Through an integrated, country-led approach, the ASCF will support interventions across clean energy, health and well-being, food and water security, and climate-resilient infrastructure and the built environment.
As part of its participation, AFC will arrange and fully fund a parallel commercial facility of up to US$260 million, with a tenor of up to 10 years, for the four countries through their respective Ministries of Finance. The facility will complement concessional climate financing and expand the capital available to support eligible investments. Catherine Koffman, GCF Regional Director for Africa, said GCF’s US$280 million is designed to work alongside substantial co-financing.
Over its lifetime, the ASCF is expected to reduce, avoid, remove or sequester approximately 3.4 million tonnes of carbon dioxide equivalent (tCO₂e) and reach 4.5 million beneficiaries through climate adaptation interventions. The facility aims to help the four countries turn national climate priorities into investable projects in clean energy, resilient infrastructure, food systems and water security.
Samaila Zubairu, President and Chief Executive Officer of AFC, said the partnership pairs concessional finance with AFC’s project development expertise and capital to help governments turn national priorities into reliable energy, stronger food and water systems, and resilient infrastructure. Success will be judged by business continuity, community protection and jobs sustained, which is how “climate finance becomes an investment in Africa’s lasting prosperity.”
Africa remains particularly exposed to climate change, with rising temperatures, increasingly unpredictable rainfall and more frequent extreme weather events threatening livelihoods, food and water security, infrastructure and economic productivity. Rapid population growth and urbanisation are adding further pressure on public services and infrastructure systems.
The Africa Sovereign Climate Facility builds on AFC’s longstanding partnership with GCF. In 2023, GCF committed US$253 million to AFC Capital Partners’ Infrastructure Climate Resilient Fund (ICRF), supporting climate-resilient infrastructure as an investable asset class and helping catalyse additional investment from institutional and private-sector investors.
The ASCF aims to strengthen the link between national climate priorities and investable infrastructure opportunities, helping participating countries move beyond incremental responses towards more coordinated and transformational climate action. Its integrated financing model is designed to mobilise additional concessional and commercial capital alongside technical assistance and capacity building. Through the partnership, AFC aims to help bridge the gap between Africa’s climate ambitions and the financing required to translate them into tangible development outcomes.