Adaptation Finance Window for Africa (AFWA)

By providing catalytic capital to support and scale investment vehicles, AFWA aims not only to help fill a critical financing gap but also to send a strong market signal about what credible adaptation investment in Africa looks like. It will: Provide catalytic support to new and existing investment vehicles targeting adaptation and resilience in Africa. Mobilize at least EUR 100 million of private capital by using catalytic funding to de-risk investments. Showcase credible, scalable models of adaptation finance that can attract future private sector participation. AFWA will provide catalytic capital to help launch or scale high-impact climate adaptation and resilience investment vehicles seeking to deploy capital across Africa. Available Funding: EUR 40 million in catalytic finance and Technical Assistance (TA) support. AFWA anticipates supporting up to four awardees with a maximum of EUR 20 million for individual awards. While applicants may request financing for TA facilities, applications solely seeking TA support will be ineligible. Although the focus of AFWA is on catalytic equity and TA, there are multiple IMCA members with the authority to issue debt guarantees. If such a guarantee is an appropriate instrument that would allow you to leverage additional private capital for adaptation in Africa, please indicate this need in your proposal. AFWA is open to private sector actors with a track record investing in relevant geographies and sectors, and a commitment to integrating adaptation and resilience into the design and management of their investment vehicle. Investment vehicles can deploy capital in the form of equity, debt or hybrid offerings.

Application and Selection Process 1. Request for Proposals – Open submission period for proposals 2. Shortlisting and Virtual Pitch – Selected applicants present to review panel 3. Due Diligence – Comprehensive assessment of successful applicants through individual funding organization’s internal approval processes. Please note that the shortlisting and pitch process does not guarantee that the proposal is internally cleared to proceed by the individual organizations. 4. Investment Committee – Final review and approval 5. Award and Contracting – Negotiation and execution of agreements Applicants should submit a maximum 15-slide pitch deck that clearly addresses the RFP’s eligibility and evaluation criteria and includes: - Articulation of investment thesis and opportunity, including potential pipeline - Adaptation and resilience integration into portfolio and operations of investment vehicle, including impact thesis and metrics - Geography and target markets - Structure and key terms of investment vehicle, including need for IMCA catalytic capital to de-risk private investors - Investment manager capacity and experience - Fundraising progress and path to mobilizing private capital - Sustainability and exit strategy - Timeline and risks Additionally, applicants must submit a Preliminary Budget that clearly indicates the type of capital and the amount of funding requested.

AFWA is implemented under IMCA, a coalition of donor and development partners committed to mobilizing private capital in support of development priorities. The World Climate Foundation (WCF) serves as the IMCA Secretariat, supporting coordination and partner engagement. Magnitude Global Finance (MGF) is facilitating the overall selection and evaluation process of proposals received under AFWA in close coordination with IMCA members. Final awards will be negotiated directly with IMCA members providing catalytic capital to AFWA and are subject to each partner’s internal due diligence, compliance, and approval procedures. Note: Although the focus of AFWA is on catalytic equity and TA, there are multiple IMCA members with the authority to issue debt guarantees. If such a guarantee is an appropriate instrument that would allow you to leverage additional private capital for adaptation in Africa, please indicate this need in your proposal.

Available Funding: EUR 40 million in catalytic finance and Technical Assistance (TA) support. AFWA anticipates supporting up to four awardees with a maximum of EUR 20 million for individual awards. While applicants may request financing for TA facilities, applications solely seeking TA support will be ineligible. Although the focus of AFWA is on catalytic equity and TA, there are multiple IMCA members with the authority to issue debt guarantees. If such a guarantee is an appropriate instrument that would allow you to leverage additional private capital for adaptation in Africa, please indicate this need in your proposal.

AFWA will provide catalytic capital to help launch or scale high-impact climate adaptation and resilience investment vehicles seeking to deploy capital across Africa. Support will prioritize market-ready vehicles and investment structures targeting at least EUR 50 million in size, with the overall goal that each selected vehicle will mobilize significant private capital, with a preference for commercially oriented private investors positioned to learn from and replicate the investment strategy if successful. AFWA aims to mobilize at least EUR 100 million of private capital across all awardees. Funding will adhere to the principle of minimum concessionality. Vehicles prioritizing least developed countries may be considered for larger concessional tranches. The most concessional tranche may not exceed 40% of total investment vehicle size. Investment managers should not expect IMCA to fully cover the proposed vehicles’ concessional tranche; some level of co-financing with non-IMCA funders is expected.

Applicants must be legally registered private sector entities with experience in emerging markets. Funds domiciled in the United States or Canada are ineligible. Team and Local Capacity Applicants must demonstrate a track record in relevant geographies and sectors, including on-the-ground presence in target markets. First-time fund managers may apply if they demonstrate strong team credentials and robust operating infrastructure, including capacity to source, manage, and monitor investments at speed and scale.