ARM-Harith Infrastructure Investments Limited (ARM-Harith) has successfully closed the first tranche of approximately $76 million for its Climate Transition Fund, marking a significant milestone in mobilizing African institutional capital for infrastructure investment across sub-Saharan Africa.
Fund Structure and Objectives
The fund is described as Africa's first integrated multi-currency blended finance vehicle for infrastructure equity, targeting a final close of $200 million. It combines both United States dollar and local currency investments within a single platform, focusing on financing climate-resilient infrastructure and energy transition projects across the region.
According to ARM-Harith, this structure addresses a key challenge in African infrastructure financing: the mismatch between hard currency funding and local currency revenues generated by infrastructure assets. The model aims to reduce currency risk at the project level while creating opportunities for greater participation by domestic institutional investors, particularly pension funds.
Catalytic Capital and Support
The first close was supported by a combined $20 million in catalytic capital from FSD Africa Investments (FSDAi) and the African Development Bank (AfDB) through its Sustainable Energy Fund for Africa (SEFA). ARM-Harith stated that this funding is intended to de-risk participation by domestic pension funds and other institutional investors while supporting broader efforts to mobilize local capital for infrastructure development.
The fund will invest in essential infrastructure projects that deliver climate resilience, economic impact, and stable cash flows across sub-Saharan Africa.
CEO Comments
Rachel More-Oshodi, Chief Executive Officer of ARM-Harith, described the first close as both an achievement and an inflection point for the firm. She noted that with their first fund, they demonstrated that domestic institutional capital can be mobilized into infrastructure equity. The successor fund builds on that foundation by bringing local and hard-currency capital together within a single platform, better aligning capital structure with the realities of African infrastructure assets.
More-Oshodi added that the new structure reflects local market realities, attracts international capital, and improves risk allocation. She emphasized that the backing institutions understand the significance of this shift, investing not only in a fund but also helping to shape a more practical and scalable way to finance the infrastructure Africa needs.
Development Partners' Perspectives
Joao Duarte Cunha, Manager of AfDB's Renewable Energy Funds Division, called the first close a major milestone for renewable energy investment in the region. He highlighted that SEFA's catalytic participation demonstrates the African Development Bank's commitment to unlocking long-term institutional capital and shows how blended finance can mobilize private investment into sustainable infrastructure.
Anne-Marie Chidzero, Chief Investment Officer at FSDAi, noted that the constraint has never been capital itself but the absence of investment products suited to pension funds' needs. She stated that their structure bridges that gap, enabling pension funds to invest in infrastructure equity while remaining aligned with their objectives and obligations.
Track Record and Impact
ARM-Harith reported that its predecessor fund financed critical transport infrastructure and more than 700 megawatts of installed power capacity. These investments supported approximately 22,500 jobs and helped avoid an estimated 2.6 million tonnes of carbon dioxide emissions annually.
