FinDev Canada backs blended climate-finance fund targeting Africa and other emerging markets

FinDev Canada has committed US$33 million to the BlueOrchard Climate Action Mobilisation Fund, a multi-region vehicle investing in Africa, Asia-Pacific and Latin America. The fund reached a US$250 million first close and will provide senior loans to financial institutions that finance small and medium-sized enterprises, as well as direct loans to companies. At least 80% of its portfolio is expected to support climate mitigation and adaptation in areas such as renewable energy, sustainable agriculture, green buildings, sustainable transport and solar energy.

The announcement does not specify how much of the fund will ultimately be invested in Africa. Its importance for Canada–Africa engagement therefore lies partly in the financing model. Alongside direct loans to companies and financial institutions, FinDev Canada is using pooled funds, blended-finance structures and institutional partnerships to bring more private capital into emerging markets. For African markets, this approach could expand access to climate financing through local lenders and businesses while sharing risk among public and private investors. It is also a financing channel to follow as Canada implements its Africa Strategy. Its practical contribution will become clearer as the fund builds its portfolio and reports where investments are made.

Source: FinDev Canada