The Development Bank of Southern Africa (DBSA) has committed capital to Africa Finance Corporation’s (AFC) $750 million Infrastructure Climate Resilient Fund (ICRF), in a move aimed at expanding climate adaptation financing across the continent.

Managed by AFC Capital Partners, AFC’s asset management subsidiary, the fund is focused on embedding climate resilience measures throughout the lifecycle of infrastructure assets, from planning and design to construction and operation.

The initiative is intended to address a growing challenge for African economies as rising temperatures, severe weather events and shifting rainfall patterns place increasing pressure on transport, energy and digital infrastructure.

DBSA’s commitment adds to a group of investors that already includes the Green Climate Fund, the European Investment Bank, the Nigeria Sovereign Investment Authority and several African pension funds.

The Green Climate Fund previously committed $253 million to the vehicle, described as its largest equity investment in Africa to date.

Samaila Zubairu, President and Chief Executive of Africa Finance Corporation, said the fund was created in response to mounting climate pressures on the continent.

“ICRF is our response to a defining challenge—ensuring Africa’s infrastructure is built to withstand the growing impacts of climate change,” he said.

“With the continent losing an estimated 2% to 5% of GDP annually to climate shocks and adaptation needs reaching up to $50 billion each year, the urgency is clear. We are therefore pleased to welcome DBSA as a key partner for the Fund.”

Boitumelo Mosako, Chief Executive of the Development Bank of Southern Africa, said the partnership reflected the need for joint action among development finance institutions.

“Africa does not have the luxury of waiting. Climate shocks are outpacing adaptation finance, and vulnerable communities continue to bear the greatest burden,” she said.

“This partnership with the Africa Finance Corporation sends a clear signal that development finance institutions are pooling their mandates, capital, and risk appetite to achieve what neither institution can accomplish alone.”

The fund is structured to attract both public and private sector investment into projects that incorporate resilience measures from the outset. By combining concessional and commercial capital, it aims to overcome barriers that have historically limited climate adaptation investment in Africa.

Target sectors include renewable energy, transport and logistics, digital infrastructure and industrial development.

AFC said each investment would undergo climate risk screening covering physical risks such as extreme weather, as well as transition risks linked to emissions and governance.

Through the fund, AFC Capital Partners expects to mobilise as much as $3.7 billion in total financing and build a portfolio of 10 to 12 projects across Africa.