51595 - African Transition Acceleration Fund (ATAF)

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Summary of Investment Information

Project Number

51595

Company Name

African Transition Acceleration Fund

Date SPI Disclosed

Dec 3, 2025

Country

Africa Region

Region

Africa

Projected Board Date

Nov 27, 2025

Environmental Category

FI-1 - Significant

Status

Active

Last Updated Date

Jun 1, 2026

Department

Regional Industry - INF Africa

Industry

other

Previous Events

Approved : Dec 17, 2025
Signed : Dec 22, 2025
Invested : May 29, 2026

Sector

Infrastructure Fund

Additional Project Attributes

Blended Finance

Project Description

The proposed investment consists of an equity investment of up to US$30 million in the South Africa-domiciled African Transition Acceleration Fund (the “Fund” or “ATAF”) managed by African Infrastructure Investment Managers (“AIIM” or the “Fund Manager”) to provide early-stage capital to accelerate the development of energy transition businesses and ecosystems in Africa. ATAF has identified three core thematic verticals: clean electrons, clean molecules and sustainable transport.

The project is expected to be supported by Frontier Opportunities Fund (FOF) as described in the Blended Finance Section.

Associated Advisory Engagement

There are no expected advisory services engagements associated with this investment.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	30.0

Development Impact

The Fund aims to provide increased access to equity and value creation for small to mid-market companies, supporting them to scale while delivering sustainability outcomes. Private Equity (PE) investment in Africa remains amongst the lowest across all regions, representing only three percent of the total PE investment in emerging markets. As there are relatively few regional fund managers serving the Africa PE market, with most of them heavily reliant on support from development finance institutions, this new fund offering from an established fund manager into the region could help signal the commercial viability of the PE model, alongside delivering sustainability outcomes and attract sustainability-linked institutional investment into Africa.

Financial Additionality: Own account equity: IFC’s equity investment will help the Fund reach its first close of US$100m, addressing key challenges in Africa’s fundraising landscape, including high risk perception, foreign exchange volatility, and economic uncertainty. With international investors withdrawing from the African Private Equity ("PE") market, even experienced regional fund managers struggle to raise capital without strong support from the development finance institutions. Resource mobilization: IFC will assist ATAF in reaching its US$200-250m fundraising target by mobilizing capital from a new investor base, including institutional investors. IFC's anchor role will validate the Fund’s strategy and reassure investors that IFC's Environmental, Social and Governance (ESG) policies will be integrated into the Fund's operations. Non-Financial Additionality Standard Setting: Given IFC’s previous engagement with AIIM, IFC will review gaps in the Fund’s Environmental and Social standards to establish if IFC is required to support specific actions with the Fund Manager. Additionally, improvements in climate related policies and processes may be explored during appraisal. This additionality will only be supported if specific incremental actions are committed by IFC to improve practices.

Indicator	Metrics	Comments
Investees with SME Classification at time of Acquisition (%)	%
Investees in IDA Countries (%)	%
Corporate Governance: Investees where Fund Manager has Board Seat (%)	%

E&S Category Rationale / Risks and Mitigation

The proposed project entails an IFC investment in ATAF, a fund managed by AIIM. The Fund will invest in early-stage capital to accelerate the development of energy transition businesses and ecosystems along thematic verticals, such as clean electrons, clean molecules and sustainable transport. The E&S risks and impacts related to the proposed investment originate from the activities of the eligible sub-projects and the Fund Manager’s ability to manage these risks through identifying, mitigating and monitoring relevant E&S risks in compliance with IFC Performance Standards. Main E&S risks associated with the sub-projects can be complex, including aspects such as community health and safety, involuntary resettlement, significant risks or impact to biodiversity and risk of adverse impacts on Indigenous Peoples communities. Therefore, the project has been categorized as FI-1 according to IFC’s Sustainability Policy. Applicable E&S requirements are IFC’s Exclusion List, national E&S laws and regulations, and the IFC Performance Standards. The Project will not support any activities on the IFC Exclusion List, coal-related projects, nor those involving energy generation from heavy fuel oils (e.g., diesel) and related infrastructures.

AIIM is an existing IFC client with and has established an ESMS to identify, assess and manage E&S risks. The ESMS clearly defines the roles and responsibilities of all Fund representatives to be applied throughout the investment cycle. AIIM’s E&S due diligence and monitoring activities of investees are formalized within its ESMS, that includes a standardized approach to E&S risk assessment at the sub-project level, ensuring alignment with IFC Performance Standards, industry and host country legislation requirements. Each asset being reviewed by the Fund Manager undergoes detailed E&S assessment, formalized in an E&S action plan (ESAP) and monitored throughout the investment period. External consultants are engaged to conduct specialized due diligence as applicable to support in-house review and monitoring. The Fund has an E&S subcommittee that meets on a quarterly basis and on which the Limited Partners (LP's) are represented.

While AIIM’s existing E&S risk management practices are overall aligned with IFC requirements, as part of the proposed investment, the Fund Manager will be required to i) enhance its ESMS and dedicated due diligence tools in line with the anticipated E&S risks of the proposed pipeline; ii) appoint a dedicated E&S Officer; iii) develop and facilitate an E&S risk management training program for relevant staff; iv) undertake independent consultant monitoring of all Category A sub-projects in the portfolio, v) continue to implement the management system and maintain sufficient internal/external capacity at all times to conduct E&S Due Diligence (ESDD) and monitoring of sub-projects in line with the relevant national E&S laws and regulations and the IFC Performance Standards; vi) maintain an External Communication Mechanism accessible to the public to receive and manage E&S related inquiries and concerns regarding its investments; vii) annually provide a report to IFC with ESMS implementation records. IFC will review the first three and all category A Environmental and Social Due Diligence (ESDD) prior to investment. IFC will have the option to opt out of any Category A sub-projects for which the ESDD or ESAP do not meet IFC Sustainability Policy requirements. Additionally, AIIM will also externally disclose Category A and B sub-projects on an annual basis, including their names, sector and locations.

The Fund Manager is largely in line with IFC’s Performance Standard 2 on Labor and Working Conditions.

S.no	Title	Anticipated Completion Date
1	Designate an E&S Officer	12/17/2025
2	Enhance ESMS	01/16/2026
3	E&S risk management training plan	12/17/2025
4	E&S risk management training	07/15/2026
5	Submit implementation report	03/17/2026

Contacts

For Inquiries About the Project, Contact

African Infrastructure Investment Managers
Lisa Pinsley
Head of the ATAF fund
+27 21 670 1234
Lisa.pinsley@aiimafrica.com
Ground Floor, Colinton House The Oval, 1 Oakdale Road Newlands, Cape Town South Africa
www.aiimafrica.com

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