A new fund worth $100 million will provide backing for early-stage nature conservation and carbon projects across Africa, filling a critical funding shortfall for biodiversity work. The Africa Nature Impact Fund, launched by Finance Earth, FSD Africa, and FSD Africa Investments (FSDAi), targets projects that struggle to attract investment due to early-stage risks. Its design covers all phases, from initial preparation through to full implementation, ensuring projects move from pre-revenue stages to long-term revenue contracts.
The initiative will mobilize an initial $20 million in 2027, with FSDAi contributing £5 million ($6.6 million). The launch took place at the Carbon Markets Africa Summit in Kigali, Rwanda. Over its lifespan, the fund expects to safeguard or restore 4.5 million hectares of land, while preventing or absorbing over 100 million tonnes of carbon dioxide equivalent. It will also improve conditions for 1.4 million people, with half of them women, and support the protection of more than 60 animal and plant species. Local communities stand to gain around $450 million in economic benefits, as projects are required to share carbon revenue directly with host populations.
James Mansfield, Managing Director of Finance Earth, emphasized the urgency: “Africa holds a quarter of the planet’s biodiversity, yet nature-based projects across the continent face major challenges in accessing the patient, fairly structured capital they need to succeed.” The fund’s structure ensures projects receive equitable financing while strengthening local investment and governance. This approach aims to keep African nature assets under African control.
The effort builds on FSD Africa’s Carbon Accelerator Programme for the Environment (CAPE), which has reviewed over 300 projects with a combined potential impact of 3.4 billion tonnes of carbon dioxide equivalent across 76.5 million hectares. The new fund will expand this work by partnering with African financial institutions to develop local expertise in carbon markets and encourage sustained African ownership of nature-related assets.
FSDAi’s investment serves as a risk-reducing anchor, making early-stage projects more appealing to institutional and local investors. Ann-Marie Chidzero, Chief Investment Officer at FSD Africa Investments, stated: “By anchoring the Africa Nature Impact Fund with much needed catalytic capital, we aim to de-risk high-integrity nature projects and crowd in the institutional and local investment that African environments and communities urgently need.” The collaboration will also enhance carbon market skills among local banks and investors, with a focus on increasing African institutional involvement in biodiversity financing.
Projects will be required to direct a substantial share of gross carbon value to host communities while maintaining ecological integrity. The fund’s focus on long-term revenue contracts ensures financial stability, while revenue-sharing models guarantee that host populations share directly in the economic gains. This dual approach addresses both the financial and social dimensions of conservation.
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