Cassa Depositi e Prestiti, the manager of Fondo Italiano per il Clima on behalf of the Italian Ministry of the Environment and Energy Security (MASE), agreed to invest up to a 35 million US Dollars in Infrastructure Climate Resilient Fund LP (ICRF), an equity vehicle for the development of climate-resilient infrastructure in Africa that is part of Africa Finance Corporation (AFC) through AFC Capital Partners.
A&O Shearman advised CDP (qpress release).
The Public Finance Policy Document 2025 already anticipated the financial aspect of the operation that is part of Italy’s initiatives to support infrastructure and the climate transition in developing countries (Note of the Italian Government). The update that A&O Shearman announced therefore concerns the finalisation of the investment without providing specific details about the timing of the capital calls.
ICRF set a fundraising target of 750 million to finance the development and upgrading of African infrastructure exposed to climate risks, with 70% of the resources allocated to adaptation measures and the remaining 30% to emissions mitigation projects. The investments will cover transport infrastructure, such as roads, bridges, ports and railways, as well as photovoltaic plants, energy systems, telecommunications networks and digital infrastructure.
The fund will be able to invest in both new projects and the upgrading of existing infrastructure, with the aim of improving its resilience to extreme weather events and extending its useful life. The strategy draws on the project origination and development capabilities of AFC, which is active since 2007 in financing strategic infrastructure in Africa.
ICRF has a blended finance structure mixing government and multilateral capital on favourable terms using funds from institutional and private investors, with the aim of reducing the risk profile of the investments and attracting commercial capital. Green Climate Fund (GCF) is ICRF main investor and in March 2023 committed for 253.8 million (240 million subordinated equity with first loss function) and 13.8 million in non-refundable grants (press release).
In February 2025, the European Investment Bank (EIB) committed to invest 52.48 million in ICRF that also attracted the resources of Nigeria Sovereign Investment Authority (NSIA) and two African pension funds (press release).
In April 2026, AFC said that Development Bank of Southern Africa (DBSA) also decided to invest in ICR as part of an agreement signed in Nairobi during the Africa We Build Summit. AFC Capital Partners launched Infrastructure Climate-Resilient Fund Nigeria, a closed-end vehicle with Nigeria’s Securities and Exchange Commission authorization for local institutional investors and that is part of a 750 million programme for to channel resources towards resilient infrastructure in Nigeria and across the rest of Africa (press release).The firm said that the fund aims to build a diversified portfolio of 10–12 infrastructure projects, with the potential to mobilise a total of up to 3.7 billion in funding with the partial involvement of other investors and lenders (press release).
Scaling Blended Finance II, a June 2026 report of British International Investment, Boston Consulting Group and Glasgow Financial Alliance for Net Zero, says that ICRF already raised over 500 million US dollars, even though it was still in the fundraising phase. Such resources also include 60 million US dollars from the sponsor, the AFC.
The ICRF project dates to 2021, when AFC announced the establishment of AFC Capital Partners as a platform dedicated to managing third-party capital and the launch of its first fund for resilient infrastructure. At that time, the initial fundraising target was 500 million, subsequently increased to the current 750 million, partly thanks to the involvement of multilateral investors (statement of AFC).
The Italian investment forms part of the activities of the Italian Climate Fund, established by the 2022 Budget Act and managed by CDP, with a total budget of 4.2 billion euros, intended to support climate mitigation and adaptation measures in emerging and developing countries. Operational management is entrusted to CDP, whilst strategic and investment decisions are the responsibility of the relevant interministerial committees chaired by MASE. At least 70 per cent of the Fund’s resources are earmarked for Africa. According to CDP’s 2025 annual report, by the end of the last financial year, six initiatives totalling approximately 550 million euros had been agreed under the Italian Climate Fund, of which 10 million was earmarked for technical assistance, whilst the governance committees had approved interventions and contributions amounting to approximately one billion euros (2025 financials of CDP).
