Frequently Asked Questions

Applicants are encouraged to review the full Request for Proposals (RFP) here before consulting the FAQs below.

If additional clarification is needed, please review the compiled responses to all submitted questions or the recording from the AFWA Bidder’s Conference.

ELIGIBILITY CRITERIA

Geographic Scope

  • Investments made in any country across the African continent are viewed favorably, given the geographic scope of this Window is focused on Africa's climate adaptation needs. However, the proposal must comply with the hard requirement that no more than 25% of the vehicle's capital may be deployed in Upper Middle-Income Countries (UMICs) as designated on the DAC list of ODA recipients (which includes South Africa and certain North African countries). Please read “Geographic Scope” section of RFP for more detail.

  • Yes, multi-country and regional funds are eligible and preferred. This preference is based on two factors: (1) many private sector investors impose geographic concentration limits on fund managers, and multi-country structures help mitigate this constraint; and (2) a larger multi-country geographic coverage often correlates with a greater possibility for impact and replication of successful portfolio companies or projects across different markets.

Investment Vehicle Requirements

  • IMCA is willing to consider applications from investment managers with a U.S. or Canadian domicile who have a dedicated side vehicle domiciled outside of those two countries. Applications should explain the purpose of the side vehicle and benefit to the main investment vehicle (e.g., participation of other non-IMCA investors). The side vehicle should not be established solely for the purpose of channeling IMCA capital into the investment.

  • The EUR 50 million refers to the target final size of the investment vehicle. The timeline and clear plan for reaching the full fundraising target will be closely assessed under the Private Capital Mobilization Potential evaluation criterion.

  • There are no strict requirements on the asset class of the investment vehicle (e.g., equity, debt facilities, or guarantee programs) as long as the underlying investments successfully support AFWA's objectives. However, note within the AFWA context preference for a clear exit strategy within a reasonable timeframe (e.g., 10 to 15 years).

  • Yes, ring-fenced allocations are eligible for support, as long as the dedicated allocation meets all other eligibility criteria (e.g., the minimum fund size, concessionality limits, and the 75% adaptation target).

  • Yes, vehicles in early fundraising stages are eligible to apply. However, AFWA is focused on timely deployment, and the evaluation will heavily weigh the fund manager's ability to ramp up fundraising and launch quickly. Proposals must provide a credible timeline demonstrating that the fund can secure anchor capital and launch before the end of 2027.

Team and Local Capacity

  • There are no strong requirements defining the exact structure and organization of local presence in Africa. Investment managers must put forward a strategy that best reflects the complexities and challenges of sourcing, executing, and managing investments in Africa. Proposals should clearly articulate how the proposed team, which can include institutional partnerships if appropriate, provides the necessary expertise and networks to operate effectively and meet the proposed vehicle’s objectives.

  • Yes, first-time fund managers can apply. We strongly recognize the importance of innovation and the unique market insights coming from new players, and we do not wish to solely support established partners. IMCA will prioritize those that can: (1) demonstrate the back-end investment management infrastructure needed to operate the proposed facility; (2) show a clear strategy for securing private capital despite lacking a track record in managing funds, and (3) credible institutional capacity to implement relevant compliance frameworks, including e.g., E&S procedures and impact measurement and reporting in adherence with recognized international standards.

ADAPTATION, RESILIENCE, AND DUAL BENEFITS

  • We will conduct a holistic review of the investment thesis, target sectors, geography, proposed pipeline, and E&S capacity to determine the extent to which the underlying investments in the proposed vehicles are likely to address physical climate risks. This assessment is based on the two core strategies defined in the RFP:

    1. Resilience of (Protect): Investments that make assets more resilient to physical climate risks (e.g., climate-resilient infrastructure).

    2. Resilience through (Grow): Investments that promote products and services that help make communities, businesses, and individuals more resilient to the impacts of climate change (e.g., early warning systems, drought-resistant seeds).

    We recognize the limited number of Adaptation and Resilience (A&R) investment vehicles operating in Africa (as noted in the AFWA Market Sounding Report), but our goal is to support investment managers who will develop replicable models for future market development.

  • Applicants should include as much detail as possible on potential pipeline companies or projects to clearly articulate the target end-users and how the benefits of the adaptation and resilience investments will accrue to these vulnerable groups. We will also assess your proposed impact thesis including the underlying Theory of Change and proposed results indicators.

  • Investment activities that are typically defined as mitigation (e.g., standard solar PV mini-grids, general electricity transmission infrastructure) will not be considered as A&R investments under AFWA unless they include a clear and specific A&R overlay. For any investment in sectors like energy or infrastructure to qualify, the applicant must explicitly demonstrate how the investment:

    1. Reduces an existing physical climate risk (e.g., making a power grid more resilient to extreme heat or cyclones).

    2. Delivers a new A&R solution (e.g., combining solar power with climate-smart irrigation that protects against drought).

    We suggest applicants refer to industry taxonomies and frameworks, such as the Climate Bonds Initiative's Climate Resilience Taxonomy (CBRT), to ensure their proposed investments meet internationally accepted A&R standards.

FINANCIAL STRUCTURE AND CAPITAL MOBILIZATION

  • Technical Assistance (TA) funding is available only as an add-on component to the catalytic investment capital requested. TA is intended to support the successful deployment and impact management of the underlying investment vehicle.

  • For the purpose of calculating private capital leverage, applicants can include capital from a broad range of private sources, including family offices, private foundations, and corporate philanthropy, as well as traditional commercial investors. DFIs will not be considered as private investors, even if investments are made on commercial terms.

    A key objective of AFWA is to demonstrate the commercial viability of A&R investments for future market growth and scaling through mobilizing investors with deep pools of capital. As such, proposals demonstrating successful mobilization from commercially oriented private investors (e.g., institutional asset managers, pension funds) will be viewed more favorably.

  • The method for demonstrating and evincing private capital mobilization is largely at the discretion of the applicant. While formal documents such as LOIs are not required, applicants must present details of private investor engagement and fundraising progress. Greater specificity will result in a stronger application.

  • Deal-level co-financing — private co-financing secured at the level of the underlying project or company, not directly into the fund or investment vehicle itself — can be included in private capital leverage ratio calculations. AFWA prioritizes investment strategies that can secure private capital directly into the investment structuring with IMCA catalytic capital.

    Applicants who intend to use transaction-level co-financing to meet their overall private capital leverage target are encouraged to clearly articulate their assumptions regarding the expected ratio and sources of co-financing and provide historical experience or evidence to substantiate those assumptions.

APPLICATION AND POST-SELECTION PROCESS

  • Yes, consortium applications are permitted. If submitting a consortium application, the proposal must clearly designate a lead legal entity that will be the primary contracting partner and detail the division of labor, governance structure, and compensation arrangements between the partners.

  • Yes, a single investment manager may submit multiple applications, provided each represents a distinct and credible strategy that aligns with the objectives of AFWA. To ensure efficient processing and evaluation, each proposed investment vehicle must be submitted as a separate, stand-alone application package (i.e., its own pitch deck, budget, and supporting materials). This allows the Evaluation Committee to assess the unique merits, financial structure, and mobilization plan of each vehicle independently.