African fund unlocks $76M for climate infrastructure
Lagos-based ARM-Harith Infrastructure Investments raised $76 million at first close of its Climate Transition Fund, targeting $200 million total. The fund combines US dollar and local currency investments in single structure, backed by $20 million from African Development Bank's SEFA and FSD Africa Investments.
This addresses $400 billion African development financing gap by tapping $600 billion in pension assets. Traditional infrastructure funds create currency mismatch as assets generate local revenues while funds are USD-denominated, eroding returns when local currencies weaken against dollar.
The fund represents shift in African infrastructure finance where DFIs act as catalytic investors, not dominant funders. By bridging currency mismatch, ARM-Harith aims to unlock domestic pension capital for power, transport, and digital infrastructure—critical for Africa's technological growth beyond just startup funding.