The Africa Finance Corporation (AFC) and the Green Climate Fund (GCF) have launched the African Sovereign Climate Facility (ASCF), a mechanism mobilising $690 million to help African governments respond to the impacts of climate change, including Angola.

According to a statement issued to the Lusa news agency, the facility is designed to assist African governments in addressing the effects of climate change while aligning climate adaptation financing with national economic development priorities.

The initiative also aims to scale up climate finance and accelerate the implementation of development projects with lower carbon emissions and greater resilience to climate impacts.

In its first phase, the programme will cover Angola, Benin, Côte d’Ivoire and Nigeria — countries that, according to the promoters, face significant climate vulnerabilities, infrastructure deficits and rising levels of greenhouse gas emissions.

The mechanism will support governments in integrating climate considerations into national development plans and in implementing their Nationally Determined Contributions (NDCs), the commitments made under the Paris Agreement.

$260 Million Commercial Credit Line

As part of the partnership, the AFC will independently arrange and fully finance a parallel commercial credit line of up to $260 million, with a repayment period of up to ten years.

The credit line will be directed at the four countries covered by the first phase of the programme and is expected to complement concessional climate financing by expanding the resources available for eligible investments.

The objective is to support governments in embedding climate resilience and low-carbon development into national planning, through investments in priority sectors.

“The infrastructure we build today must drive Africa’s growth while also withstanding the climate pressures of the future,” said Samaila Zubairu, President and Chief Executive Officer of the AFC, as quoted in the statement.

Zubairu added that the partnership with the GCF combines concessional financing with the AFC’s expertise in project structuring and development, making it possible to translate national priorities into investments across the energy, food and water systems, and resilient infrastructure sectors.

Africa remains particularly exposed to the effects of climate change, with rising temperatures, erratic rainfall and an increasing frequency of extreme weather events threatening livelihoods, food and water security, infrastructure and economic productivity.

The pressure on these sectors is further compounded by population growth and rapid urbanisation, which are increasing demand for public services and infrastructure across many countries on the continent.