Hello,
Sustainable and green finance runs through this edition, from first-of-their-kind ALCB fund anchored green and sustainability bonds in Senegal and Angola to e-mobility debt from Lendable’s LTEF and Nithio’s FUEL, and the launch of the Africa Nature Impact Fund. Convergence’s State of Blended Finance 2026 reports Africa’s share of blended finance falling, and Ethiopia is confirmed as host of COP32 in 2027.
Financing & Investing
▶ The African Local Currency Bond Fund (ALCB Fund) has anchored first-of-their-kind local currency issuances in Angola and Senegal. In Angola, the fund committed AOA 9.1 billion (about $10 million) to Angola's first sustainability bond, issued by Banco Angolano de Investimentos (BAI), marking its debut investment in the country. The issuance raised AOA 57.5 billion against a AOA 50 billion target on 454 subscription orders, with proceeds directed to agriculture, industry, logistics, transport, healthcare, and pharmaceuticals. In Senegal, the fund invested XOF 4 billion ($7.0 million) in Swami Agri's XOF 30 billion ($52.2 million) debut green bond, the first agricultural green bond issued in the UEMOA region. Proceeds will fund 62,500 tonnes of solar-powered cold storage and 16.7 MW of solar generation for one of Senegal's largest agricultural producers, with a FAGACE first-demand guarantee covering 100% of principal and interest.
▶ Shell Foundation has anchored the junior, first-loss tranche of the Lendable Transportation and Energy Fund (LTEF), which reached a $135 million first close in December 2025 and targets $200 million by mid-2027. IFC, FMO, and SIFEM anchor the senior tranches, and the first investment backs Watu to scale its lease-to-own e-bike business to around 1,000 vehicles per month.
▶ East Africa Foods has closed a funding round of about $40 million, including $26 million in Series B equity led by PIDG through InfraCo with Oikocredit and FMO, alongside debt from the Schmidt Family Foundation and reinvestment from existing shareholders. The capital will expand processing, storage, and logistics in Tanzania and Kenya, where up to 40% of food is lost before reaching consumers, with a target of reaching up to 100,000 smallholder farmers.
▶ British International Investment is committing $65 million across Zambia and Zimbabwe, including a $15 million anchor for Zanaco's sustainability bond programme and a $50 million Zimbabwe Agriculture Finance Programme facility for CABS and NMB Bank that pairs long-term lending and trade finance with technical assistance. BII is also introducing Horizon Zambia, a country programme building on a 2025 pilot that supported 15 SMEs and helped facilitate $8 million in investments.
▶ IFC has disclosed a proposed investment of up to $7.5 million in Cauris Finance's Third Wave Fund, a structured debt fund targeting tech-enabled lenders across Africa with a $75 million target and a $100 million hard cap. About 40% of capital is earmarked for lease-to-own mobility fintechs serving entrepreneurs and gig-economy workers, with the remaining 60% going to fintech lenders providing working capital to MSMEs.
▶ Nithio has launched the Fund for Utility and E-mobility Lending (FUEL), a $150 million senior secured debt fund to finance commercial e-mobility and supporting infrastructure across Sub-Saharan Africa, with loans of $2 million to $15 million backed by hard assets and cash flows. Nithio is targeting a $100 million first close in 2027, building on its FAIR vehicle, which has committed about $55 million to 18 borrowers.
▶ The European Investment Bank is appraising a proposed $85 million (EUR 76 million) investment in EU-Africa Economic Transformation Virunga II, a pan-African growth equity platform investing in mid-cap companies, with a total project cost of about $500 million per the EIB's disclosure. Team Europe partners EBRD, Proparco, and DEG are involved alongside IFC and QIA, and the platform will take majority positions in sectors including healthcare, fast-moving consumer goods, training, digital infrastructure, and financial services.
▶ AIIB has committed $50 million to the TPG Rise Climate Global South Initiative Fund, plus up to $50 million in co-investments to boost climate investment across its members in Asia, the Middle East, and Africa. A parallel vehicle to TPG Rise Climate II, developed with ALTÉRRA, the Article 9 fund targets energy transition, green mobility, sustainable fuels, carbon solutions, and climate adaptation in emerging and developing economies.
▶ Cascador and Sterling Bank have announced a $200 million SME Credit Backstop Fund to expand growth capital for debt-ready Nigerian SMEs, providing a defined credit-risk backstop that supports up to $1 billion in outstanding credit capacity. SMEs can initially access local-currency loans equivalent to $250,000, with the fund aiming to unlock loan sizes of up to $1 million once fully funded.
▶ Finance Earth, FSD Africa, and FSD Africa Investments have launched the Africa Nature Impact Fund, targeting $100 million for early-stage nature and nature-based carbon projects, with a first close of $20 million sought in 2027 and a £5 million cornerstone commitment from FSDAi. Investments will require benefit-sharing arrangements aimed at generating around $450 million for host communities, alongside a goal of protecting or regenerating 4.5 million hectares.
▶ The Islamic Development Bank and IFAD have agreed to mobilise up to $750 million in co-financing for sustainable agriculture, rural businesses, and climate adaptation, building on 29 co-financed projects worth about $1.45 billion since 1980. The figure is a mobilisation target rather than a committed allocation, and country-level allocations have not yet been announced.
Ecosystem & Policy
▶ Nigeria has launched its Capital Market Masterplan 2.0, a ten-year roadmap for 2026 to 2036, developed by SEC Nigeria with support from FSD Africa and the UK Government and launched alongside a national savings plan. The plan targets growth in collective investment scheme assets from $5.6 billion to $56 billion, annual diaspora investment into capital markets from $4 billion to $10 billion, and institutional non-sovereign allocations from about 40% to 50%.
▶ The African Union has officially launched the Africa Credit Rating Agency (AfCRA) in Mauritius, an independent, Africa-focused rating body intended to complement rather than replace existing international agencies by bringing African data and context into sovereign credit assessments. AU Commission Chairperson Mahmoud Ali Youssouf framed the launch around the cost of capital, noting that ratings directly affect borrowing costs for countries already facing debt-servicing pressure.
▶ MacArthur Foundation has raised its impact investing allocation by 50% to $750 million, with implementation beginning in 2027 and repaid investments redeployed into new ones. Its Africa footprint includes field-building through the Catalytic Capital Consortium and design-stage funding for Aceli Africa, which has since mobilised more than $440 million in agricultural SME lending.
▶ I&P Ecosystems, the learning and advisory arm of Investisseurs & Partenaires, has received Catalytic Capital Consortium funding to build an LP Conversion Funnel for emerging African venture capital and SME funds, delivered with FrontEnd Ventures. The pilot aims to move a small cohort of African limited partners from initial interest to actual fund commitments, creating a model that can be scaled to additional LPs.
▶ IFAD and the World Bank have signed a new Co-Financing Framework Agreement at the IMF-World Bank Annual Meetings in Bangkok to expand joint investment in rural transformation and food systems, building on partnerships such as AgriConnect, which targets 300 million smallholder farmers by 2030. IFAD's co-financing with the World Bank's IDA more than doubled from about $646 million in 2021 to $1.56 billion in 2025, and the framework will initially run for five years with automatic renewal.
▶ Ethiopia will host COP32 in Addis Ababa in November 2027, after African nations endorsed its bid over Nigeria's at COP30 in Belém. As host, Ethiopia takes the COP presidency, positioning Addis Ababa to help shape the agenda for the next African-hosted global climate summit.
Resources
▶ Convergence's State of Blended Finance 2026 finds Africa losing ground in the blended finance market, with the continent's share of transactions falling from 34% to 19% and financing dropping to $4.5 billion, while the share of Africa-focused funds fell from 50% to 20%. The report points to a deal pipeline tilting toward middle-income countries, even as official development assistance directed to blended finance fell by only 4%, compared with a 23% drop in ODA overall.
Opportunities
▶ The European Union and the Italian Agency for Development Cooperation (AICS) have launched a €2.7 million call for proposals under the AgrEcoNUS+/LEAP initiative to scale neglected and underutilised crops across Ghana and Côte d'Ivoire. The selected consortium will support at least 60 cooperatives, producer groups, and small businesses over 36 months, with financial assistance of up to €60,000 per organisation; lead applicants must be NGOs with 7+ years of experience, and proposals are due December 16, 2026 at 15:00 GMT.
▶ WomanKind Alliance has opened applications for its 2027 Creative Grant, which will award one early-stage femtech startup a six-week brand strategy and design partnership valued at $15,000, covering brand strategy, a new visual identity, and key assets such as pitch decks. Applications close November 1, 2026.
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