ARM-Harith raises $76 million for climate-focused investment fund

ARM-Harith Infrastructure Investments Limited (ARM-Harith) has announced that it has raised around $76 million for its climate transition fund. This is the first close of its successor fund aimed at promoting sustainable energy and infrastructure across Africa.

The fund hopes to reach a final target of $200 million. It aims to gather African institutional capital and speed up investments in energy transition and climate-resilient projects in Sub-Saharan Africa.

In a statement on Monday, shared with PREMIUM TIMES, the company said this fund is the first integrated multi-currency blended finance platform for African institutional investors. It combines both US dollar and local currency investments in one infrastructure equity fund.

ARM-Harith mentioned that this model was created to tackle a long-standing issue in African infrastructure funding. This issue is the mismatch between foreign currency investments and local currency earnings from infrastructure projects.

The firm explained that by mixing local and hard-currency capital in one platform, it can lower currency risks for projects. It will also allow more domestic investors, especially pension funds, to participate. International investors will still have access to dollar-denominated investments.

The first close was supported by $20 million in funding from FSD Africa Investments (FSDAi) and the African Development Bank (AfDB) through its Sustainable Energy Fund for Africa (SEFA).

ARM-Harith stated that this funding will help reduce risks for pension funds and other investors. It will also help increase local capital for infrastructure development across Africa.

The fund plans to invest in projects that provide climate resilience, economic benefits, and stable long-term returns in Sub-Saharan Africa.

Rachel More-Oshodi, ARM-Harith's Chief Executive Officer, talked about this achievement. She said the first close is a major milestone for the company and for financing infrastructure on the continent.

"This first close is both an achievement and an inflection point for ARM-Harith. With our first fund, we showed that we can mobilise domestic capital into infrastructure equity. With this successor fund, we are building on that foundation by bringing local and hard-currency capital together within one platform," she said.

Ms More-Oshodi added that this structure connects investment capital more closely with the needs of African infrastructure assets. It creates a model that can attract both local and international investors.

Joao Duarte Cunha, who manages AfDB’s Renewable Energy Funds Division, also commented on the success. He said this first close is an important step for renewable energy investment in Sub-Saharan Africa.

"SEFA’s participation shows the African Development Bank’s commitment to unlocking long-term capital. It demonstrates how blended finance can bring private investment into sustainable infrastructure," he said.

Anne-Marie Chidzero, Chief Investment Officer at FSDAi, spoke about the challenges pension funds face in infrastructure. She noted that it is not a lack of capital but a shortage of suitable investment options.

"The issue has never been capital itself, but the lack of investment products that meet the needs of pension funds, especially regarding tenure, risk, and currency alignment," she said.

She explained that FSDAi’s investment structure aims to fill that void. It allows pension funds to invest in infrastructure equity while keeping in line with their goals and regulations.

ARM-Harith shared that its previous fund financed key transport infrastructure projects and added over 700 megawatts of power capacity across Africa.

Those investments helped create around 22,500 jobs and prevented an estimated 2.6 million tonnes of carbon dioxide emissions each year.

The new fund will build on these successes by supporting projects that deliver strong commercial returns while also achieving climate and development goals, according to the company.

With over 80 years of combined investment experience across Africa, ARM-Harith focuses on infrastructure investments in energy, transport, logistics, digital infrastructure, waste management, and water projects.

The firm has played a significant role in mobilising Nigerian pension fund capital for infrastructure investments across the continent for more than ten years.