The International Finance Corporation (IFC) will commit $25 million to the African Transition Acceleration Fund (ATAF), an investment vehicle that aims to bridge the continent’s climate finance gap by supporting projects across clean power, low-carbon industries and sustainable infrastructure.
ATAF – managed out of Mauritius and advised by African Infrastructure Investment Managers – is targeting a total raise of $200–250 million, with an initial close expected at $100 million. The fund will focus on scalable projects that can demonstrate both financial viability and measurable climate impact, from renewable energy and storage to energy-efficient industrial ventures.
If approved by IFC’s board later this year, the commitment would position the institution as ATAF’s anchor investor, a move designed to de-risk early-stage participation and attract a broader pool of institutional backers.
The IFC’s proposed investment underscores a wider strategic shift in mobilizing private capital toward infrastructure and energy transition assets in low-income regions. It also reflects a growing trend of hybrid climate vehicles that blend development finance with private capital to accelerate Africa’s clean energy rollout.
