FSD Africa Investments (FSDAi), the UK-backed specialist development finance investor, is investing GBP10 million (US$13 million) into ARM-Harith’s Climate and Transition Infrastructure Fund (ACT Fund) to unlock local institutional capital for climate infrastructure.
ARM-Harith Infrastructure Investment Limited is a leading African private equity firm committed to catalysing economic growth through sustainable infrastructure.
ARM-Harith and FSDAi’s investment introduces an innovative solution to allow Nigerian pension funds to address a longstanding challenge in infrastructure equity finance: the ability to invest while receiving early liquidity. By enabling predictable interim distributions during the early phases of investment, this innovative facility directly addresses a key barrier that has historically deterred domestic institutional capital from entering the asset class.
In addition, 75 per cent of the FSDAi facility will be provided in local currency – a first-of-its-kind approach specifically designed to mitigate the impact of foreign exchange volatility for pension funds. T
FSDAi’s investment aligns with its broader mission to deepen African financial markets towards accelerating the financing of Africa’s green economic transformation and will support the fund’s investments in climate-resilient infrastructure including energy, transport, water, and digital connectivity.
