Africa's $76M Fund Backs Green Energy with Local Currency

African pension funds just got a powerful new way to invest in the continent's clean energy future without betting against their own currencies.

ARM-Harith Infrastructure Investments announced it raised $76 million for a groundbreaking climate fund that works in both U.S. dollars and local African currencies. The fund aims to reach $200 million and will finance solar power, wind energy, and climate-resistant infrastructure across Sub-Saharan Africa.

Here's why this matters: For years, African pension funds wanted to invest in local infrastructure but faced a frustrating problem. Investment funds required dollars, but infrastructure projects like solar farms earned revenue in local currencies like naira or shillings. This currency mismatch created huge risks that scared away billions in potential investment.

ARM-Harith's new fund fixes that. Pension funds can now invest in their local currencies while international investors use dollars, all within the same fund structure. It's the first platform of its kind designed specifically for African institutional investors.

The African Development Bank and FSD Africa Investments kicked in $20 million in early support to help reduce risks for pension funds. Their backing signals confidence that this model can work at scale.

The Ripple Effect

This isn't ARM-Harith's first rodeo. Their previous fund already financed over 700 megawatts of power capacity and created 22,500 jobs across Africa. Those projects prevent 2.6 million tonnes of carbon emissions every year, equivalent to taking hundreds of thousands of cars off the road.

CEO Rachel More-Oshodi calls it an "inflection point" for African infrastructure financing. Her team proved domestic capital could fund infrastructure equity. Now they're showing how to do it bigger and better.

The timing couldn't be more critical. Africa needs massive investment in clean energy and climate adaptation, but foreign investment alone won't meet the need. Unlocking local pension fund capital creates a sustainable, scalable solution that doesn't depend on foreign donors or volatile international markets.

Anne-Marie Chidzero from FSDAi put it simply: African pension funds never lacked money. They lacked investment products that matched their needs around risk, timeframe, and currency. This fund solves that puzzle.

The new fund will back projects across energy, transport, digital infrastructure, waste management, and water systems. Each investment must deliver both strong financial returns and measurable climate benefits.

For more than a decade, ARM-Harith has specialized in connecting Nigerian pension capital to African infrastructure projects. With 80 years of combined investment experience, the team knows how to navigate the continent's unique challenges.

The $76 million first close proves the concept works, and African investors are ready to put their money into building a cleaner, more resilient continent on their own terms.