In brief: Blended finance manager handed $1.3bn infra mandate

The Regional Transmission Infrastructure Financing Facility invests in energy transmission in southern Africa.

Blended finance GP Climate Fund Managers has been appointed to manage The Regional Transmission Infrastructure Financing Facility, a fund launched by The Southern African Power Pool in partnership with the Southern African Development Community to invest in energy transmission in Southern Africa.

The facility, which launches with $20 million in commitments from SAPP, is aiming for a $500 million first close in 2025 and a final close of $1.3 billion within 24 months, according to a statement. It will comprise a $100 million target development fund to provide concessional capital and development expertise and a $1.2 billion target construction fund that will finance projects. The platform is open to both public and private sector investors.

The SAPP is a collection of national power utilities from Angola, Botswana, Democratic Republic of the Congo, Eswatini, Lesotho, Mozambique, Malawi, Namibia, South Africa, Tanzania, Zambia and Zimbabwe. The SADC is a regional economic community comprised of 16 member states.

CFM manages a number of emerging market infrastructure funds focused on climate change: Climate Investor One, an $850 million fund focused on renewable energy, which closed in 2019; and Climate Investor Two, which launched in 2020 and is seeking $1 billion to invest in water, sanitation and oceans infrastructure. CFM also acts as fund manager for Gaia, a blended finance credit project led by Japanese mega-bank Mitsubishi UFJ Financial Group and development bank FinDev Canada that targets climate mitigation and adaptation projects in the Global South.