Acre Impact Capital, a leading private-debt impact investment manager, has announced the successful first closing of its Export Finance Fund I. The fund has received commitments nearing US$100mn and aims to reach US$300mn. It is expected to play a major role in funding climate-friendly infrastructure projects across Africa.
Hussein Sefian, CEO of Acre Impact Capital, shared his excitement, saying,We are very proud to have gained strong support from our limited partners, who recognize the potential of our innovative Export Finance Fund I to make meaningful environmental and social impacts. Sefian also explained the fund’s strategic approach: By utilizing export credit agencies’ support, we can provide more competitive financing solutions, significantly reducing project costs and increasing their economic viability.“
The fund has attracted a diverse group of investors, including prominent Development Finance Institutions like the European Investment Bank and FSD Africa Investments, as well as private investors from Africa. This shows strong confidence in the fund’s risk-return profile and its strategic impact focus. This diverse investor mix not only highlights the fund’s attractive financial structure, but also its dedication to sustainable development goals.
In addressing the urgent need for infrastructure financing, the fund is well positioned to facilitate significant investments in sectors such as renewable energy, health, and sustainable urban development.Our goal is to invest in 15-20 projects that will not only meet the immediate infrastructure needs, but also deliver substantial environmental benefits,” Sefian added.
Furthermore, the fund’s commitment to gender-smart investing is evident in its strategy to ensure that at least 30% of the portfolio meets the 2X Criteria, which focuses on increasing women’s representation and promoting gender equality within the projects and the fund’s operations. This is supported by Acre Impact Capital’s participation in programs like the USAID’s Scaling-Up Renewable Energy program, which helps integrate gender equality and social inclusion into investment processes.
As Acre Impact Capital continues to advance its ambitious agenda, the backing from institutions such as The Rockefeller Foundation and the Private Infrastructure Development Group’s technical assistance through PIDG Company GuarantCo emphasizes the strategic and considerate development of the Export Finance Fund I.
The fund’s innovative approach not only establishes a new standard in impact investing, but also demonstrates how targeted financial interventions can effectively fill the substantial infrastructure financing gap in Africa, paving the way for a sustainable and fair development path.
