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Africa Finance Corporation (AFC) and the Green Climate Fund (GCF) have launched the Africa Sovereign Climate Facility, a programme aimed at supporting African governments to advance climate-resilient development through blended finance, technical assistance and capacity building.

The initiative, known as the Africa Sovereign Climate Facility (ASCF), was unveiled during a signing ceremony in South Korea. It is designed to support governments to integrate climate priorities into national development plans through a combination of technical assistance, capacity building and blended finance.

The programme's first phase will target Angola, Benin, Côte d’Ivoire and Nigeria, countries facing growing climate risks, infrastructure challenges and increasing greenhouse gas emissions. Investments will focus on sectors including clean energy, food and water security, healthcare and climate-resilient infrastructure.

AFC President and Chief Executive Officer Samaila Zubairu said the partnership would help governments translate climate commitments into projects that support economic growth and long-term resilience.

“The infrastructure we build today must both power Africa’s growth and withstand the climate pressures of tomorrow,” Zubairu said. “Through this partnership with GCF, we are combining concessional finance with AFC’s project development expertise and capital to help governments turn national priorities into reliable energy, stronger food and water systems, and resilient infrastructure.”

GCF Regional Director for Africa Catherine Koffman said the fund’s contribution would help generate additional investment while supporting climate and development goals.

“GCF’s $280 million is designed to work alongside substantial co-financing, reaching an estimated 4.5 million people and avoiding 3.4 million tonnes of emissions,” Koffman said. “This partnership shows how blended finance can strengthen sovereign investment systems and deliver climate capital at scale.”

As part of the initiative, AFC will arrange and fully fund a parallel commercial facility of up to $260 million for the four participating countries through their respective finance ministries. The facility, which will have a tenor of up to 10 years, is intended to complement concessional climate financing and expand the capital available for eligible projects.

According to AFC and GCF, the programme is expected to reduce, avoid or remove approximately 3.4 million tonnes of carbon dioxide equivalent emissions over its lifetime. It is also projected to benefit around 4.5 million people through adaptation measures aimed at improving resilience to climate-related impacts.

The launch builds on an existing partnership between AFC and GCF. In 2023, GCF committed $253 million to AFC Capital Partners’ Infrastructure Climate Resilient Fund, which seeks to expand investment in climate-resilient infrastructure across the continent.

Africa is among the regions most vulnerable to climate change, facing rising temperatures, erratic rainfall patterns and more frequent extreme weather events. AFC and GCF said the new facility is intended to help governments move from climate planning to implementation by linking national priorities with investable infrastructure projects and mobilising both public and private capital.

The organisations said the ASCF will support a more coordinated approach to climate action while helping participating countries pursue low-carbon growth and strengthen resilience to future climate shocks.