Key Takeaways
- • Finance Earth, FSD Africa and FSD Africa Investments (FSDAi) have launched the Africa Nature Impact Fund, targeting $100 million for nature and nature-based carbon projects across Africa.
- • The fund is seeking a $20 million first close in 2027, with FSDAi providing a cornerstone commitment of £5 million ($6.6 million).
- • The vehicle is structured as a closed-end debt fund to be managed by London-based Finance Earth.
- • The fund aims to channel patient, fairly structured capital into African nature assets and build local investment and governance structures so projects are financed by African financial institutions.
Summary
Finance Earth is a London-based investment manager and adviser focused on environmental projects. FSD Africa, based in Nairobi, works on the development of financial markets across Africa, and FSDAi is its investment arm.
James Mansfield, managing director at Finance Earth, said that Africa holds a quarter of the planet's biodiversity, yet nature-based projects across the continent face major challenges in accessing patient, fairly structured capital. He said the Africa Nature initiative is designed to finance projects equitably, build local investment and governance structures, and ensure African nature assets are financed by African financial institutions. He described the announcement as a critical milestone and the culmination of the partnership with FSD Africa to date.
Anne-Marie Chidzero, chief investment officer at FSD Africa Investments, said catalytic capital works hardest when it unlocks markets that would otherwise remain out of reach. She said the fund's anchor capital aims to de-risk high-integrity nature projects and crowd in institutional and local investment into African landscapes and communities.
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