Finance Earth, FSD Africa and FSD Africa Investments launched a fund on Tuesday, 13 October, in Kigali, aiming to raise $100 million to finance African nature, biodiversity and carbon projects. Dubbed the Africa Nature Impact Fund, the platform was presented at the Carbon Markets Africa Summit held in the Rwandan capital.
The $100 million announced is a fundraising target, not an amount already available. The promoters are targeting a first close of $20 million in 2027. FSD Africa Investments has committed to contribute £5 million, or about $6.6 million at the exchange rate used in the launch statement.
The fund is to invest in projects that are still at an early stage and that generally struggle to secure commercial financing before generating revenue. Its structure provides support adapted to several stages, from preparation and commercial trials through to implementation, to help move operations toward more predictable contracts and revenues.
Investments must concern ecosystem restoration, biodiversity or nature-based carbon projects. Africa Nature says it will only select operations that include benefit-sharing mechanisms with host communities. The platform also aims to involve African banks and investors in holding and financing the assets concerned.
The promoters aim to protect or restore 4.5 million hectares and to avoid or sequester more than 100 million tonnes of carbon dioxide equivalent over the lifetime of the projects. They also put forward a target of 1.4 million beneficiaries and about $450 million in economic benefits for communities. These figures are targets, not results already achieved.
The fund relies on the Carbon Accelerator Programme for the Environment, developed since 2024 by FSD Africa, Finance Earth and the African Natural Capital Alliance. The programme says it has reviewed more than 300 projects representing a potential of 3.4 billion tonnes of carbon dioxide equivalent across 76.5 million hectares. This volume describes a pipeline of assessed projects, not certified emission reductions.
FSD Africa estimates that more than 62% of the continent's gross domestic product depends moderately or heavily on services provided by nature. Africa Nature's ability to reach its target will, however, rest on attracting other investors, selecting financially viable projects and the quality of methods used to measure climate effects and local benefits. Organisers of the Kigali summit themselves note that voluntary carbon markets remain held back by concerns over credit integrity and uneven demand.