30/10/2026
LATEST BUZZ //
Climate Fund Managers Secures Approval for USD 140 Million from Green Climate Fund to Advance Industrial Decarbonisation in Southern Africa through Climate Investor Three
Climate Fund Managers, a climate-focused blended finance investment manager, has secured approval for USD 140 million in catalytic financing from the Green Climate Fund (GCF) for Climate Investor Three (CI3), its global blended finance facility focused on industrial decarbonisation, including green hydrogen infrastructure in Southern Africa. The funding was approved at GCF's 46th Board meeting in Songdo, Republic of Korea, held from 26 to 29 October 2026.
CI3 targets investments within industrial decarbonisation globally. Under the GCF-supported programme, activity in South Africa and Namibia will include green hydrogen production, downstream derivatives such as green ammonia and green methanol, and the decarbonisation of hard-to-abate industries. Its diversified portfolio approach allows CI3 to invest across renewable energy generation, production, transport and end-use infrastructure, supporting the development of integrated industrial value chains. Its blended finance model combines public and private capital, using catalytic funding to mitigate risks and enable institutional and commercial investors to participate. Its Development Tranche finances early-stage project development, while its Construction Equity Tranches provide equity capital to support projects through construction.
CI3 invests through two country-specific Climate Fund Managers’ affiliates: the SA-H2 Fund (SA-H2) in South Africa and SDG Namibia One Fund (SDG Namibia One) in Namibia. Of the USD 140 million approved, USD 84 million will be allocated to SA-H2's Construction Equity Tranche, while USD 56 million will be allocated to SDG Namibia One, comprising USD 15 million for its Development Tranche and USD 41 million for its Construction Equity Tranche.
The GCF financing will be provided under the Southern African Industrial Decarbonisation Facility (SIDF), GCF's first platform dedicated to decarbonising industrial value chains in Africa. The Development Bank of Southern Africa (DBSA) serves as GCF Accredited Entity for SIDF, with responsibility for programme oversight, monitoring and reporting to GCF.
The approval builds on Climate Fund Managers’ longstanding relationship with GCF, including previous investments in: Climate Investor One, focused on renewable energy; Climate Investor Two, focused on water, waste and oceans infrastructure; and the GAIA Climate Loan Fund, which provides debt financing for climate adaptation and mitigation projects. It also follows Climate Fund Managers' accreditation by GCF in July 2026.
SA-H2 is managed by SA-H2 Fund Managers (Pty) Ltd, a joint venture between Climate Fund Managers and Invest International. SDG Namibia One is managed by Namibia Energy Transition Fund Managers (Pty) Ltd, a partnership between Climate Fund Managers, Invest International and the Environmental Investment Fund of Namibia (EIF).
Andrew Johnstone, Chief Executive Officer of Climate Fund Managers, said: “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 and help societies adapt to the consequences we witness every day around us.
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 and support competitive, low-carbon industrial growth.”
Catherine Koffman, Regional Director for Africa at the Green Climate Fund, said: “The Southern African Industrial Decarbonization Facility is GCF’s first platform dedicated to decarbonising industrial value chains in Africa. By deploying catalytic first-loss equity where risk is highest, the facility aims to unlock a target USD 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. It offers a scalable model for competitive, low-carbon industrial growth.”
Dr Phindile Masangane, Group Executive Programmes at Development Bank of Southern Africa said: “This approval is a strong vote of confidence in Southern Africa's ability to decarbonise its industrial base while protecting growth and jobs. With USD 84 million allocated to South Africa and USD 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 the GCF funding into development projects where the emissions are hardest to abate and the economic stakes are highest. Our role is to derisk investment, crowd in private capital, and ensure the transition delivers development outcomes. We thank the Green Climate Fund and its global partners for their confidence in the DBSA as we look forward to turning this commitment into projects on the ground.”
Jeroen Plag, Chief Investment Officer at Invest International said: “The approval of GCF's investment is an important step in accelerating industrial decarbonisation in Southern Africa. Through SA-H2 and SDG Namibia One, we are supporting the build out of infrastructure and the creation value chains needed for a competitive low-carbon economy. This commitment demonstrates how concessional climate finance can reduce risk and mobilise additional investment at scale, enabling projects that deliver both climate impact and sustainable economic growth.”
Benedict Libanda, Chief Executive Officer of the Environmental Investment Fund of Namibia (EIF), said: “Namibia has significant potential to develop green hydrogen and associated industries, but realising that potential requires capital, specialist expertise and meaningful Namibian participation. SDG Namibia One brings these elements together, combining international investment with local knowledge and an understanding of national priorities. GCF's catalytic financing will help build on this foundation, advancing projects that can create jobs, support industrial development and contribute to Namibia's transition to a low-carbon economy.”
CI3 has already secured significant backing from public and institutional investors. Its Development Tranche received initial commitments of EUR 150 million from Invest International and the European Commission under the EU's Global Gateway initiative. In August 2026, SA-H2 reached a first close of ZAR 3 billion (~USD 182 million), with investment from South Africa’s Public Investment Corporation (PIC) on behalf of the Government Employees Pension Fund (GEPF), Sanlam Life, the Industrial Development Corporation of South Africa (IDC) and DBSA across its development and construction equity tranches. SDG Namibia One is backed by Invest International and the European Commission.
In South Africa, SA-H2 has signed development funding agreements for Hive Hydrogen's Coega green ammonia project and Green eFuels Producers' wastewater-to-green-methanol facility. In Namibia, SDG Namibia One has signed development funding agreements with the Hyphen green hydrogen project, HyIron's Oshivela green iron project, the Zhero Molecules Walvis Bay green ammonia project and the Dâures green fertiliser project.
Climate Fund Managers will continue to mobilise public and private capital towards CI3's USD 1.2 billion fundraising target, supporting the development and construction of energy transition and green hydrogen infrastructure across South Africa and Namibia.
