ARM-Harith Achieves First Close of Climate Transition Fund at US$76 Million

 

ARM-Harith Infrastructure Investment Limited has announced the first close of its successor climate transition fund at approximately US$76 million, marking a significant step in mobilizing capital for sustainable infrastructure across Sub-Saharan Africa.

The fund, described as the first integrated multi-currency blended finance platform designed specifically for African institutional investors, is denominated in both US dollars and local currencies within a single structure. It targets a final close of US$200 million and will focus on equity investments in energy transition and climate-resilient infrastructure projects.

A key innovation of the fund is its ability to address the longstanding currency mismatch in African infrastructure financing. By blending hard and local currency capital from the outset, it reduces project-level currency risk, making it more attractive for domestic institutional investors, particularly pension funds, while offering US dollar exposure to international investors.

The first close was anchored by US$20 million in catalytic capital from FSD Africa Investments (FSDAi) and the African Development Bank (AfDB) through its Sustainable Energy Fund for Africa (SEFA). This support is intended to de-risk participation for African pension funds and other local institutions, helping to scale domestic capital mobilization for infrastructure projects.

Through its predecessor fund, ARM-Harith supported critical transport infrastructure and more than 700 MW of installed power capacity. These investments created approximately 22,500 jobs and helped avoid an estimated 2.6 million tonnes of CO₂ emissions annually. The new fund aims to build on this track record by targeting projects that combine strong commercial returns with measurable climate and development impact.

ARM-Harith Infrastructure Investments Limited is a leading pan-African private equity fund manager with over 80 years of combined investment experience. The firm focuses on equity investments in energy, transport and logistics, digital, waste, and water infrastructure, with a strong emphasis on sustainability and the mobilization of domestic institutional capital, particularly from Nigerian pension funds.