Financial services firm Standard Bank has committed to Acre Impact Capital’s Export Finance Fund I to support the financing of sustainable projects in Africa.

Acre Impact Capital manages Export Finance Fund I, which seeks to invest in climate-aligned and sustainable infrastructure projects in renewable energy, health, food, water security, sustainable cities and green transportation, thereby providing access to essential services to predominantly underserved communities across the continent.

Standard Bank is the largest commercial bank investor in the fund, which will result in blended finance being delivered at scale.

“As the largest African bank by assets, operating in 20 African countries, we understood first-hand the importance of backing this unique fund as a platform for converging new sources of capital for investment on the continent.

“We are delighted to be part of this market-first fund working with our partners at the European Investment Bank, FSD Africa, Trimtab, Ceniarth and others. Acre’s backers collectively realise that this platform represents a new model for blending finance sources for Africa, with the potential to meaningfully address the funding gap for essential infrastructure,” says Standard Bank Investment Bank export and agency finance head Greg Fyfe.

The fund will co-invest alongside well-established export credit agencies (ECAs) and international banks.

Standard Bank notes that ECAs play a critical role in bringing in private-sector players in infrastructure projects in emerging and frontier markets by mitigating various types of potential risks for investors.

“The fund’s investments will complement and are aligned with the bank’s own sustainable finance aspirations. We look forward to seeing other investors join us in supporting Acre Impact Capital,” says Standard Bank Investment Banking senior VP of project and export finance Gregg Wheelwright.

Moreover, Standard Bank says it has committed to support Africa’s transition to a lower-carbon economy in line with the Paris Agreement. 

It adds that the investment is a catalyst to achieving the first close of the fund, which will help deliver up to $2-billion of highly impactful projects.

The fund’s target size of $300-million will mobilise a total of $1.7-billion of private capital to deliver impactful Sustainable Development Goals-aligned projects in Africa.

“We are delighted to have Standard Bank as one of our trusted partners as we strive to make a meaningful impact on the ground through our investments in climate-aligned essential infrastructure,” says Acre Impact Capital CEO Hussein Sefian.