Mauritius-regulated infrastructure fund manager and parent company ARM-Harith Infrastructure Investments has announced the official launch of the ARM-Harith Cities and Climate Transition Fund (ACT Fund), which is endorsed by the Global Innovation Lab for Climate Finance.

The $250-million target fund has been designed in collaboration with the Global Innovation Lab, a public-private partnership initiative funded by the Dutch, German, Swedish and UK governments, as well as the Rockefeller Foundation.

The ACT Fund represents a pillar of ARM-Harith’s sustainable infrastructure investment platform and will invest in urban climate infrastructure solutions with an initial focus on renewable energy, urban mobility, water and waste.

The platform will enable ARM-Harith to leverage on its relationships with regional pension funds and international development finance institutions (DFIs) to mobilise international capital and domestic pension savings into infrastructure that supports a low-carbon future.  

However, the company notes that private sector investment is crucial to meeting this need to complement public budgets, hence the launch of the ACT Fund, which is a blended finance instrument to unlock finance for low-carbon, climate-resilient development that tackles private investment barriers.

ARM-Harith has invested in robust environmental, social, governance and climate metrics measurements and criteria assessments to attract long-term sustainable investment capital.

To fulfil its greater ambition to facilitate and finance a transition to sustainable, climate resilient and low-carbon economies for West African cities, ARM-Harith is building strong climate finance credentials anchored on West Africa’s specific needs.

ARM-Harith will be working with its relevant stakeholders to ensure long-term sustainability of its investments in alignment with the United Nations Sustainable Development Goals.

ARM-Harith CEO Tariye Gbadegesin says the company is building on its record of its first fund, ARMHIF 1, to establish a broad-based climate infrastructure investment programme in partnership with global financial institutions to mobilise climate finance to West Africa and importantly, Nigeria.