RMB invests in climate-aligned infrastructure fund for Africa

Rand Merchant Bank (RMB), a prominent African corporate and investment bank, has made a strategic investment in the Acre Export Finance Fund I. This fund is dedicated to supporting climate-aligned infrastructure projects across Africa by targeting commercial debt tranches of Export Credit Agency (ECA) transactions.

The fund celebrated its initial closing on April 17th, securing approximately $100 million in equity. These funds are earmarked for financing projects in key areas such as renewable energy, healthcare, food security, water scarcity, sustainable urban development, and green transportation.

Aymeric Perrin-Guinot of RMB London highlighted the fund’s potential to mobilize up to $2 billion towards impactful projects by providing specialized funding for commercial debt tranches. This move is expected to significantly contribute to bridging Africa’s annual infrastructure financing gap, which exceeds $100 billion.

Siyanda Mflathelwa from RMB emphasized the fund’s role in addressing the challenging funding of uncovered portions of ECA transactions, which is crucial for economic growth in the deployed regions. The International Monetary Fund (IMF) has noted the substantial job creation potential of such infrastructure investments.

RMB’s commitment to sustainable finance is further reinforced by the fund’s alignment with the UN’s 17 Sustainable Development Goals (SDGs) and its adherence to leading impact reporting frameworks.

Hussein Sefian, CEO of Acre Impact Capital, commended RMB’s investment as a testament to the positive influence African financial institutions have on financing essential, climate-aligned infrastructure in Africa.

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