Finance Earth is working with other UK-based backers to establish the Africa Nature Impact Fund together with FSD Africa and FSD Africa Investments, according to a joint statement. The vehicle is pitched as Africa's first conservation-focused financing platform as carbon markets expand. FSD Africa Investments has committed £5 million ($6.6 million) to help address the funding gap for nature and nature-based carbon initiatives.
They aim to build a $100 million vehicle, targeting an initial $20 million closing in 2027. That timeline sits against a market that Grand View Research projects could reach $1.2 trillion by 2026 and potentially grow to $6 trillion by 2033. More than 62% of Africa's GDP depends on nature, yet funding for ecosystem protection and emissions reduction is still far short of need. Ann-Marie Chidzero, FSD Africa Investments' chief investment officer, said: "Africa holds a quarter of the planet's biodiversity, yet nature-based projects across the continent face major challenges in accessing the patient, fairly structured capital they need to succeed."
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Plans call for safeguarding or restoring about 4.5 million hectares and, across project lifetimes, cutting or capturing over 100 million tons of CO2e. The initiative intends to reach 1.4 million people - women comprising half - and to protect upwards of 60 species of plants and animals.
The fund still requires regulatory approvals, and investors can only subscribe after it is licensed. If approvals land and targets are met, communities could see substantial cash flows tied to conservation results, and investors would have a clearer line of sight between nature projects and financial returns. If carbon markets keep scaling and these projects deliver, climate and biodiversity gains could show up in portfolios, not just press releases.
Whether these structures work will shape a lot of future funding. Get the free Market Briefs daily newsletter and follow it.
