SIFEM, the Swiss Investment Fund for Emerging Markets, has committed USD 15 million to the African Transition Acceleration Fund (ATAF), a blended-finance fund managed by African Infrastructure Investment Managers (AIIM) that invests in early-stage renewable energy and climate infrastructure across Africa.

Targeting USD 200 million, ATAF is designed to address a persistent financing gap for climate infrastructure at the earlier stages of development, when projects often struggle to attract sufficient commercial capital. The Fund will invest in approximately 10–15 development platforms and climate ventures across three areas: clean electrons, including renewable generation and energy storage; clean molecules, such as green hydrogen, biogas and biomethane; and sustainable transport, including electric mobility and charging infrastructure.

SIFEM joins a group of development and climate investors supporting ATAF, including IFC, Proparco, EBRD and KfW. The European Investment Bank has also approved proposed financing for the Fund.

Mobilising capital for Africa’s energy transition

Africa faces substantial investment needs to expand access to reliable energy while transitioning towards lower-carbon infrastructure. Early-stage projects face a particular financing challenge: they require significant development capital before reaching the scale and risk profile sought by many institutional and commercial investors.

ATAF seeks to bridge this gap by providing capital to develop and scale commercially viable climate infrastructure businesses. Its blended-finance structure includes a 25% first-loss tranche, which absorbs a greater share of potential losses and helps mobilise senior investment into opportunities that might otherwise struggle to attract financing.

By investing at this stage, the Fund aims to help projects reach bankability and attract larger volumes of follow-on commercial capital.

The Fund is expected to contribute to climate mitigation through the deployment of renewable energy and other low-carbon technologies, while supporting improved access to reliable and affordable energy and creating direct and indirect employment. At least 30% of portfolio companies are targeted to meet the 2X Challenge criteria for gender-lens investing.

Building on an experienced African infrastructure manager

ATAF is managed by African Infrastructure Investment Managers (AIIM), an established infrastructure investment manager with more than 25 years of experience investing across the continent.

The investment builds on SIFEM’s existing infrastructure portfolio while extending its reach towards earlier-stage climate assets. AIIM’s previous funds have supported 2.2 GW of renewable energy capacity, avoided 6.2 million tonnes of CO₂ emissions and supported 19,912 decent jobs.

SIFEM’s commitment is fully aligned with its strategic objective to contribute to climate mitigation and adaptation in emerging markets. The Fund targets multiple countries across Africa, including SIFEM priority countries. SIFEM will also hold an Advisory Board seat, enabling it to contribute to the Fund’s governance alongside other development finance institutions.

About African Infrastructure Investment Managers

African Infrastructure Investment Managers is a specialist infrastructure investment manager focused on Africa. Established more than 25 years ago, AIIM invests across infrastructure sectors including energy transition, digital infrastructure, and mobility and logistics.

Through ATAF, AIIM is extending its investment strategy into earlier-stage energy-transition opportunities, providing development and scale-up capital to businesses and platforms across Africa’s emerging climate infrastructure ecosystem.