VC firm announces a USD250m climate infrastructure fund for West Africa

The ARM-Harith Cities and Climate Transition Fund (The ACT Fund) launched today will invest in urban climate infrastructure projects with an initial focus on renewable energy, urban mobility, water, and waste.

The initiative was set up by ARM-Harith– the joint venture co-owned by Nigerian financial services business Asset & Resource Management Holding Co Ltd, and Johannesburg-based venture capitalist Harith General Partners– as part of a broader climate finance strategy.

The ARM-Harith Cities and Climate Transition Fund is a welcome development as it will be instrumental in unlocking finance for low-carbon, climate-resilient development in West African cities. For players in the region’s renewable energy, urban mobility, and waste management sectors, the ACT fund represents an opportunity to get a slice of the fund, thereby creating innovative energy solutions in their communities.

According to the press release announcing the launch, the USD250 million target fund is being designed with the support of the Global Innovation Lab for Climate Finance backed by the Dutch, German, Swedish, and UK governments; and the Rockefeller Foundation.

The platform will allow ARM-Harith to leverage its relationships with regional pension funds and International DFIs to mobilize international capital and domestic pension savings into infrastructure which supports Africa’s low-carbon future. The investment platform will work with its relevant stakeholders to ensure the long-term sustainability of its investments in alignment with the Sustainable Development Goals.

Thrilled with ARM-Harith’s current trajectory, the VC firm’s CEO, Tariye Gbadegesin, said, “We are thrilled to build on the track record of our first fund ARMHIF 1 to establish a broad-based climate infrastructure investment program in partnership with global financial institutions to mobilize climate finance to West Africa and importantly, Nigeria.”

In the same way, Alwyn Wessels, Deputy CEO of Harith General Partners, commented that “Harith as a partner with and investor in infrastructure funds across Africa is excited by the prospects of The ACT Fund and the potential for the fund to promote real climate action in West Africa.”