The European Investment Bank (EIB) has pledged up to $40 million to Acre Impact Capital’s Export Finance Fund I, the first fund of its kind investing in the commercial debt of export credit agencies. This innovative fund aims to catalyze climate-infrastructure projects in Africa, focusing on renewable power, health, food and water scarcity, sustainable cities, and green transport. The strategy offers exposure to climate infrastructure for both commercial institutional and impact investors, while mitigating market risks.
The Export Finance Fund I targets shorter tenor commercial debt tranches, vital for project financing before official export credit agencies can support the remaining portion. The fund’s specialized funding for this tranche will unlock transactions and potentially mobilize $5.6 of private sector capital for every dollar invested. By addressing the growing scarcity of funding for commercial debt tranches, the fund seeks to bridge the infrastructure financing gap in Africa, estimated to be over $100 billion annually.
Opinion: The collaboration between the European Investment Bank and Acre Impact Capital reflects a significant step towards accelerating climate infrastructure projects in Africa. By leveraging export finance mechanisms, the fund can attract private capital to support essential infrastructure development. Moreover, the fund’s commitment to gender smart investing and inclusion ensures women’s representation across its investment portfolio, aligning with sustainable and impact-focused goals.
