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Africa has contributed the least to climate change but is the continent most exposed because of housing, transport, industrial and energy structures unsuited to surviving storms, floods, droughts, wildfires and other hazards caused by extreme weather patterns.

The UN Office for Disaster Risk Reduction gauges that without urgent intervention, the cost of structural damage caused by natural disasters will increase to $415 billion annually by 2030, from between $250-300 bn right now.

Damage to rail tracks, roads, bridges, seaports and power grids will add to an infrastructure deficit currently sitting at $130-170 bn a year. The UN Conference on Trade and Development estimates a total of $2,3 trillion worth of infrastructure is needed across Africa.

“Significant financing is urgently required to build physical infrastructure that will survive the forces of climate change. The good news is that much of this investment is compatible with competitive returns for investors through leveraging the expertise, relationships and blended finance models that have been tried assessed for many years by Africa Finance Corporation.

The mandate of AFC Capital Partners is aligned to AFC’s in offering attractive investment opportunities to the global development finance and commercial investor community seeking long-term returns through structures that protect African built infrastructure from climate risks. The newly created fund, incorporated in Mauritius, will employ traditional project finance and private equity structures, supported by a blend of concessional finance, grants and ‘soft equity’.

“Our objective is to stay true to AFC’s track record, competency and investor interest without compromising on the ability to provide timely exits and a seamless entry by new investors on an arm’s length basis,” said Adams.