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ARM-Harith Infrastructure Investments Limited has secured about $76 million as the first close of its Climate Transition Fund, a new investment vehicle aimed at financing climate-friendly infrastructure across Africa.
The fund, which targets a total of $200 million, is designed to channel both local and foreign capital into energy transition and climate-resilient projects in Sub-Saharan Africa. It will allow investments in both U.S. dollars and local African currencies within the same structure—an approach meant to reduce risks caused by currency differences that often discourage infrastructure funding on the continent.
According to the firm, the blended finance structure is also expected to attract more African institutional investors, especially pension funds, while still offering international investors dollar-based returns.
The first close was supported by a combined $20 million in catalytic capital from the African Development Bank (AfDB) through its Sustainable Energy Fund for Africa (SEFA) and FSD Africa Investments (FSDAi). The funds are intended to reduce risk for local investors and encourage more private capital into infrastructure projects. ARM-Harith Chief Executive Officer Rachel More-Oshodi said the fund builds on the company’s earlier work in mobilising domestic institutional money for infrastructure.
She said the structure is designed to better match how African infrastructure assets generate income, while making the investment model more scalable.
AfDB’s Joao Duarte Cunha described the development as an important step for renewable energy financing in Africa, saying blended finance can help unlock long-term institutional investment.
FSDAi Chief Investment Officer Anne-Marie Chidzero said the main barrier for pension funds has not been lack of money, but the absence of investment structures that fit their long-term obligations and risk profiles.
The Climate Transition Fund is expected to support renewable energy and climate-resilient infrastructure projects while increasing participation from African institutional investors in the continent’s infrastructure development.
