Africa Nature Impact Fund Targets $100 Million for Carbon Projects

October 29, 2026 | By Semahegn Nigatu

A new fund targeting 100 million US dollars for early-stage nature and carbon projects across Africa was announced at the Carbon Markets Africa Summit 2026 in Kigali, as governments, investors and project developers discussed ways to attract investment and expand the continent’s participation in carbon markets.

The Africa Nature Impact Fund, established by Finance Earth, FSD Africa and FSD Africa Investments, has secured a cornerstone commitment of five million pounds sterling from FSD Africa Investments and is seeking an initial close of 20 million US dollars in 2027, according to the summit organisers.

The fund aims to address a financing gap facing nature-based projects, which often require substantial upfront investment for preparation and development before they can generate and sell carbon credits.

Held from October 13 to 15 at the Kigali Convention Centre, the summit brought together government officials, investors, carbon buyers, project developers and technical specialists to discuss project financing, market access and the credibility of carbon credits.

Discussions covered blue carbon, reforestation, agriculture, rangeland restoration and waste-related projects. Investor roundtables and deal rooms were organised to connect project developers with potential financiers and buyers, while sessions examined carbon credit pricing, offtake arrangements and the financing required to bring projects to market.

Rwanda also outlined an approach under consideration to channel a share of carbon transaction proceeds through the Rwanda Green Fund to help prepare and pre-finance future projects. The proposal was presented by Bernadette Arakwiye, Rwanda’s minister of environment.

On October 15, the Kigali International Financial Centre launched Rwanda’s Sustainable Finance Roadmap 2.0, setting priorities through 2030. The framework places greater emphasis on preparing businesses and projects for investment, strengthening carbon finance and improving sustainability data.

Hortense Mudenge, chief executive of the Kigali International Financial Centre, said sustainable finance could support business growth, job creation and economic resilience, while positioning Kigali as a centre for carbon aggregation and investment structuring.

The summit also addressed carbon market integrity, project authorisations, registry interoperability, risk-sharing and local verification capacity. Shikha Sharma, global technical lead for climate solutions at SGS, said independent validation and verification were essential to establishing confidence in carbon credits and ensuring that projects delivered measurable climate benefits.

The summit was hosted by Rwanda’s Ministry of Environment, with the United Nations Development Programme and the African Development Bank among the host organisations.

Participants highlighted the need to turn connections established during the event into investment-ready projects, with community rights and fair benefit-sharing incorporated into project design.

Source: FSX Business News