The International Finance Corporation (IFC), part of the World Bank Group, revealed on October 15, 2025, that it plans to invest $25 million in the African Transition Acceleration Fund (ATAF).
The goal is to speed up the continent’s clean energy transformation and strengthen local capacity in green innovation, according to Ecofin Agency.
ATAF, headquartered in Mauritius, is managed by African Fund Managers and advised by African Infrastructure Investment Managers (AIIM).
The fund focuses on scaling businesses and ecosystems that advance Africa’s shift toward renewable energy, sustainable technologies, and cleaner mobility solutions.
IFC’s proposed investment, awaiting board approval on November 27, 2025, will act as seed capital to jumpstart the fund’s activities.
By serving as an anchor investor, IFC aims to attract additional institutional partners and bolster investor confidence in ATAF.
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The fund targets a total raise of between $200 million and $250 million to help close the financing gap hindering Africa’s energy transition.
Currently, private equity investments in Africa make up only about 3% of total inflows to emerging markets, a figure IFC considers far too low for a region with such strong growth potential.
The investment is also expected to facilitate ATAF’s first close of roughly $100 million, enabling it to begin channeling capital into promising early-stage projects and companies across the continent.
AIIM, established in 2000 and a subsidiary of Old Mutual Limited, one of South Africa’s top financial institutions, manages about $3.4 billion in assets.
With offices in Cape Town, Johannesburg, Nairobi, Lagos, and Abidjan, AIIM centers its investments around three transformative sectors driving Africa’s future, digitalization, energy transition, and mobility.
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Image Credit: United Nations Development Programme