The Africa Finance Corporation and the Green Climate Fund have launched the Africa Sovereign Climate Facility (ASCF) to scale up climate finance and accelerate low-carbon, climate-resilient development across Africa.

The $690 million facility, launched at at a signing ceremony in Korea on Tuesday, was designed to help African countries address the growing impacts of climate change while advancing their economic development priorities.

“By combining technical assistance, capacity building and large-scale blended finance, the programme will support governments in integrating climate considerations into national development planning and accelerating the implementation of their Nationally Determined Contributions (NDCs),” a statement released after the launch stated.

According to the statement, the programme’s first phase will focus on Angola, Benin, Côte d’Ivoire and Nigeria, countries facing significant climate vulnerabilities, infrastructure deficits and rising greenhouse gas emissions. 

It added, “Through an integrated, country-led approach, the ASCF will support interventions across critical sectors, including clean energy, health and well-being, food and water security, and climate-resilient infrastructure and the built environment.”

The chief executive officer of AFC, Samaila Zubairu, noted that the infrastructure must be leveraged to power Africa’s growth and withstand the climate pressures of tomorrow.

“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. Success will be measured in businesses that keep producing, communities better protected and jobs sustained. That is how climate finance becomes an investment in Africa’s lasting prosperity,” Mr Zubairu said.

The GCF regional director for Africa, Catherine Koffman, also explained that the facility would help Angola, Benin, Côte d’Ivoire and Nigeria turn national climate priorities into investable projects in clean energy, resilient infrastructure, food systems and water security. 

She noted, “GCF’s USD 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. This partnership shows how blended finance can strengthen sovereign investment systems and deliver climate capital at scale.”

The statement added that the launch built on AFC’s longstanding partnership with GCF to mobilise climate finance and advance sustainable infrastructure development across Africa, adding the collaboration reflected a shared commitment to using innovative financing structures to address Africa’s infrastructure needs while strengthening resilience to climate change.

According to the statement, the AFC will arrange and fully fund a parallel commercial facility of up to US$260 million, with a tenor of up to 10 years, for Angola, Benin, Côte d’Ivoire and Nigeria through their respective ministries of finance. 

“The facility will complement concessional climate financing, expanding the capital available to support eligible investments while helping participating governments integrate climate resilience and low-carbon development into national planning.

“Over its lifetime, the ASCF is expected to reduce, avoid, remove or sequester approximately 5.78 million tonnes of carbon dioxide equivalent (tCO₂e) in greenhouse gas emissions — roughly equivalent to removing 1.3 million cars from the road for one year. The programme is also expected to reach 5.2 million beneficiaries through climate adaptation interventions, equivalent to the current estimated population of Cape Town, South Africa,” it noted.

Citing the effects of climate change, including rising temperatures, increasingly unpredictable rainfall and more frequent extreme weather events threatening livelihoods on the continent, the statement decried food and water security, infrastructure and economic productivity in Africa.

It said the ASCF was aimed to strengthen the link between national climate priorities and investable infrastructure opportunities, helping participating countries move beyond incremental responses towards more coordinated and transformational climate action.