Climate Fund Managers Secures $140M Catalytic Commitment from Green Climate Fund

THE HAGUE & SONGDO — Climate Fund Managers (CFM), the climate-focused blended finance manager, has secured $140.0 million (~ZAR 2.52 billion) in catalytic anchor financing from the Green Climate Fund (GCF) for its global facility, Climate Investor Three (CI3).

The approval was formalized at the GCF’s 46th Board meeting in Songdo, South Korea. The funding forms part of the Southern African Industrial Decarbonisation Facility (SIDF), GCF’s inaugural platform dedicated to industrial value chain decarbonization across Africa, with the Development Bank of Southern Africa (DBSA) serving as the Accredited Entity.

The catalytic first-loss equity tranche is designed to de-risk green hydrogen infrastructure and heavy industry decarbonization projects across South Africa and Namibia, crowding in private and institutional capital toward CI3’s $1.2 billion (~ZAR 21.6 billion) fundraising target.

Bifurcated Capital Allocation & Country Vehicles

CFM deploys CI3 capital in Southern Africa through two dedicated country-specific joint ventures:

• South Africa — SA-H2 Fund (SA-H2): Allocated $84.0 million (~ZAR 1.51 billion) specifically for its Construction Equity Tranche. The vehicle is managed by SA-H2 Fund Managers (Pty) Ltd, a joint venture between CFM and Dutch DFI Invest International. SA-H2 reached a ZAR 3.0 billion (~$182.0 million) first close in August 2026, backed by the Public Investment Corporation (PIC) on behalf of GEPF, Sanlam Life, IDC, and DBSA.
• Namibia — SDG Namibia One Fund (SDG Namibia One): Allocated 56.0million( N56.0million( N 1.02 billion), comprising $15.0 million for its Development Tranche and $41.0 million for its Construction Equity Tranche. The vehicle is managed by Namibia Energy Transition Fund Managers (Pty) Ltd, a partnership between CFM, Invest International, and the Environmental Investment Fund of Namibia (EIF).

Asset Pipeline & Macro Decarbonisation Target

The SIDF facility aims to mobilize $1.2 billion across 30 to 40 industrial-scale projects, supporting the installation of 1.52 GW of renewable capacity and mitigating 24.2 million tonnes of greenhouse gas emissions:

• South African Project Pipeline: SA-H2 has executed development funding agreements for Hive Hydrogen’s Coega green ammonia project and Green eFuels Producers’ wastewater-to-green-methanol processing plant.
• Namibian Project Pipeline: SDG Namibia One has signed development funding agreements with the Hyphen green hydrogen project, HyIron’s Oshivela green iron facility, Zhero Molecules’ Walvis Bay green ammonia project, and the Dâures green fertilizer initiative.
• Development Funding Strategy: CI3’s global Development Tranche previously secured €150.0 million (~$162.0 million) in initial commitments from Invest International and the European Commission under the EU’s Global Gateway initiative.

Executive Statements

"CI3 marks an important milestone in Climate Fund Managers’ journey of directing capital, through innovative financing structures, into commercial investments designed to mitigate the causes of climate change," stated Andrew Johnstone, Chief Executive Officer of Climate Fund Managers. "Decarbonising heavy industry is essential to achieving global climate goals and presents a significant investment opportunity. Yet the scale and complexity of these projects create financing challenges, particularly during development and construction. By helping to mitigate these risks, GCF’s catalytic financing can attract institutional investment into commercially viable projects."

"The Southern African Industrial Decarbonization Facility is GCF’s first platform dedicated to decarbonising industrial value chains in Africa," added Catherine Koffman, Regional Director for Africa at the Green Climate Fund. "By deploying catalytic first-loss equity where risk is highest, the facility aims to unlock a target $1.2 billion programme across South Africa and Namibia, finance 30 to 40 projects, install about 1.52 GW of renewable energy and avoid an estimated 24.2 million tonnes of emissions."

"This approval is a strong vote of confidence in Southern Africa’s ability to decarbonise its industrial base while protecting growth and jobs," noted Dr. Phindile Masangane, Group Executive Programmes at the Development Bank of Southern Africa. "With $84 million allocated to South Africa and $56 million allocated to Namibia, the DBSA, with its partners, Climate Fund Managers and the Environmental Investment Fund of Namibia, is well placed to channel GCF funding into projects where emissions are hardest to abate."

"Namibia has significant potential to develop green hydrogen and associated industries, but realising that potential requires capital, specialist expertise and meaningful Namibian participation," commented Benedict Libanda, Chief Executive Officer of the Environmental Investment Fund of Namibia.

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