Africa Finance Corporation (AFC) and the Green Climate Fund (GCF) have launched the Africa Sovereign Climate Facility (ASCF), a US$690 million climate finance programme aimed at accelerating low-carbon development and strengthening climate resilience across African countries. The facility was launched at a signing ceremony in South Korea and is designed to help governments address climate-related challenges while supporting their economic development priorities.
The programme will combine concessional financing, commercial capital, technical assistance and capacity building to support climate-resilient infrastructure and sustainable development. It will also help participating governments integrate climate considerations into national development strategies and accelerate the implementation of their Nationally Determined Contributions (NDCs).
The first phase of the facility will cover Angola, Benin, Côte d’Ivoire and Nigeria. These countries face significant climate vulnerabilities, infrastructure gaps and increasing greenhouse gas emissions. The programme will support investments across several important sectors, including clean energy, healthcare, food and water security, climate-resilient infrastructure and the built environment.
As part of the financing structure, the Green Climate Fund will provide US$280 million in concessional climate finance. This contribution will be supported by additional co-financing to develop projects that address climate risks and promote sustainable economic growth. According to the GCF, its investment is expected to reach approximately 4.5 million people and help avoid 3.4 million tonnes of greenhouse gas emissions.
AFC will also arrange and fully fund a parallel commercial financing facility of up to US$260 million. The facility will have a repayment period of up to 10 years and will be made available to Angola, Benin, Côte d’Ivoire and Nigeria through their respective Ministries of Finance. This commercial financing will complement the concessional funding and expand the capital available for eligible climate-related investments.
Samaila Zubairu, President and Chief Executive Officer of AFC, said the partnership would combine concessional finance with AFC’s project development expertise and capital to help governments translate national priorities into infrastructure projects. He highlighted the importance of developing reliable energy systems, strengthening food and water security and building infrastructure capable of withstanding future climate pressures.
Catherine Koffman, GCF Regional Director for Africa, said the facility would help participating countries convert their climate priorities into investable projects. She noted that the GCF’s US$280 million contribution would work alongside additional financing to support climate-resilient infrastructure, clean energy, food systems and water security.
Over its lifetime, the Africa Sovereign Climate Facility is expected to reduce, avoid, remove or sequester approximately 5.78 million tonnes of carbon dioxide equivalent (tCO₂e). This is comparable to removing around 1.3 million cars from roads for one year. The programme is also expected to benefit approximately 5.2 million people through climate adaptation interventions.
The launch builds on the existing partnership between AFC and GCF. In 2023, the GCF committed US$253 million to AFC Capital Partners’ Infrastructure Climate Resilient Fund, supporting climate-resilient infrastructure development and attracting additional investment from institutional and private-sector investors.
Africa is increasingly exposed to rising temperatures, unpredictable rainfall and extreme weather events, which threaten agriculture, water resources, infrastructure and economic productivity. Rapid urbanization and population growth are further increasing pressure on essential services.
Through the new facility, AFC and GCF aim to bridge the financing gap between Africa’s climate commitments and actual project implementation. The initiative is expected to strengthen national investment systems, mobilize private and public capital and support sustainable, inclusive and climate-resilient economic growth across the continent.
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