Transform & Adaptation Fund (TAF)

Under the management of AfricInvest, a pan-African investment platform active across private equity, venture capital, and private debt, in collaboration with ThirdWay Partners (TWP), an impact investment and advisory firm in Africa and other emerging markets, the blended finance fund will have a three-layer blended structure (Catalytic, Mezzanine, and Senior). The Fund is targeting a $200 million size, with a first close of $60 million by Q1 2026 and a final close by Q3 2027, and seeking to mobilize private capital from international and African investors, including DFIs, development agencies, sovereign wealth funds, funds of funds, foundations, corporates, insurance companies, pension funds, and family offices. The IFC is actively considering an investment in TAF.

The Fund’s impact thesis is to accelerate climate finance flows towards equal, accessible, and affordable solutions that build climate and societal resilience and facilitate climate mitigation within Agriculture and the Food Value Chain, Mobility, and Built Environment in Africa and LatAm. The Fund’s mission and impact potential are primarily targeting innovative and scalable solutions that support underserved communities vulnerable to climate change and it will prioritize communities most in need, focusing on innovative businesses in agriculture, mobility and the built environment, including low-income households, women, and marginalized rural communities. TAF Investment Strategy clearly articulates both results (e.g., individuals reached, assets made climate-resilient) and benefits (e.g., improved livelihoods, reduced vulnerability) for direct and indirect beneficiaries. Fund-level KPIs (with expected targets) include:

• individuals supported to have more climate-resilient livelihoods (7 million);
• green jobs created and supported (600,000);
• total CO2e removed or avoided (6 million tons) and
• value and/or area of assets or land made climate-resilient (TBD)

TAF delivers adaptation and resilience while creating green jobs for direct beneficiaries—smallholder farmers, building occupants—and indirect beneficiaries—communities benefiting from improved food security, cleaner air, and employment.

The Fund is looking for support from Alliance members along with other investors in order to mobilize private capital. The fund is split into three tranches: the Catalytic or Junior tranche has a size of up to US$60 million. This tranche provides the first loss equity and is usually public donors and some DFIs. The Mezzanine tranche has a size of US$80 million and is usually subscribed by Development Finance Institutions. The Senior tranche has a size of US$60 million and is usually reserved for private/institutional investors, including local pension funds and insurances.