Investment Platforms and Ecosystem Building (Part Two)
Following part one, Saliem Fakir continues to discuss the African Climate Foundation’s (ACF) approach to country investment platforms. He highlights the operational strategies, international engagement, and his vision for the ACF.
How is the ACF adapting its operational model to support a broader range of investment platforms?
Operationally, it is important to note that although we have changed the orientation of our strategy, making it more implementation-focused, the thematic focus of the ACF remains the same. However, our goal is now to create investment platforms that are not necessarily driven by governments alone. These platforms can involve national, regional, and sub-regional governments, communities, CSOs and labour unions. We are adopting a more cosmopolitan view, acknowledging that not all states have the capacity to absorb new funding sources. Thus, we are exploring decentralised approaches, including sectoral and technology platforms that can be scaled and diversified. For instance, there is interest in community-owned electricity generation solutions, and we need to make this happen. The question is, how? What are the funding models? Where and how will it be financed? Practice is the best route to understanding and generating new wisdom. Too often, ideas are recycled, and policy briefs and reports end up on shelves, forgotten. Then, activists move on to next big issue. At least an investment platform keeps the action alive and teaches us what is doable or not doable.
In terms of finance, our stakeholders should be aware that we have recently put out a recruitment call for a Senior Sustainable Finance Manager. Additionally, we are in the process of crafting a finance strategy that will be finalised by the end of September 2024. Alongside this, we have a separate programme focused on international investment partnerships. This work involves Africa’s geopolitical partners, such as the US, Europe, China and Gulf States.
Can you highlight key initiatives?
As part of our evolving strategy, we are focusing on several key initiatives. We have recently issued multiple Requests for Proposals (RFPs) that include an investment framework for Nationally Determined Contributions (NDCs), adaptation financing solutions, and mechanisms for adaptation and resilience as part of our adaptation-resilient investment platforms (ARIPs). Additionally, we are exploring ways to provide the cheapest sources of finance for farmers, extending beyond traditional commercial banks. These efforts reflect a significant shift in our approach as we strengthen the ACF’s operational capacity and expand our structural model to include sub-regional hubs. We will provide more information on these developments as they progress. We have built a fantastic leadership team over the past year, and I am excited to see the huge potential we have to do amazing things with our partners on the ground. Our shift in strategy has been profound, and it is still working its way through our staff, board, grantees, and funders.
What challenges will the Foundation face in promoting collaboration across different sectors and viewpoints?
The classical model often fosters insularity, where like-minded individuals congregate, leading to groupthink and limited perspectives. We must create discomfort in the system by encouraging forms of solidarity economic models, not just climate groups talking to themselves. This should be underpinned by an eclectic approach to investment platforms that involve a wide range of stakeholders, even those with whom we may not naturally align. The ACF seeks to engage with a broader array of actors, working towards common societal goals. This approach requires grappling with complex challenges, known in the engineering world as “wicked problems.”
We have been pushing this approach of diversity of thinking and players since we started, and we are now scaling up.
The evolving strategy will surely demand new skills and capabilities within the ACF and amongst its partners. What are they?
We are looking for expertise in finance, investment, social organisation, behavioral sciences, legal matters, economic analysis, skilled project management, technology adoption specialists, and more. This includes the ability to design investment packages and identify appropriate financing tools. To be clear we are not focused on growing the ACF internal team, but on making investments in institutions that can help us solve the climate and development nexus issues. There are different models, including hosting new platforms like we are doing with the creation of the New Economy Hub and the Africa Energy Futures Hub. We want to do something similar for critical minerals in the near future, so as you can see, the ACF is constantly innovating.
What steps is the ACF taking to enhance its global collaboration and presence?
We are strengthening our international partnerships, including a focus on Chinese institutions, with a member of staff based in Beijing fostering relationships. We are also engaging with European partners, such as the African-Europe Foundation, and planning collaborations with organisations in the US. Our engagement in these international networks will become more evident as we participate in global events, such as the G20 hosted by South Africa, where the ACF will be actively involved.
How is the ACF adapting to new developments and preparing for growth?
I am very excited about where we are. The ACF is growing from strength to strength, with new people bringing different sets of skills that we did not have before. This new pivot and realignment with these new skill sets are bringing about significant capabilities and networks that we are deepening. We are committed to investing in new kinds of fellowships to support young talent that can connect climate investment platforms with economic needs going forward. This dynamic approach allows us to continuously develop and improve our capacity, fostering a supportive environment for young talent and new partners. We aim to nurture this young talent that can play a crucial role in linking climate investment platforms and economic growth, ensuring a robust future for our initiatives.
We continue to expand our reach and deepen our impact. In the coming months, our website will be updated to feature comprehensive insights into our in-country work and the innovative investment platforms that we are building across the continent.
