- The Green Climate Fund has approved US$140 million in catalytic financing for Climate Investor Three (CI3), a global blended finance facility investing in industrial decarbonisation, including green hydrogen infrastructure.
- The funding will support CI3 activities in South Africa and Namibia through the SA-H2 Fund and SDG Namibia One Fund, helping to reduce project risk and attract further private capital.
- The approval strengthens CI3’s drive towards its US$1.2 billion fundraising target, with the Development Bank of Southern Africa acting as Accredited Entity.
Climate Fund Managers, a blended finance investment manager with a climate focus, has secured approval for US$140 million in catalytic financing from the Green Climate Fund (GCF) for CI3. The facility targets industrial decarbonisation globally, with this programme directed at green hydrogen infrastructure in Southern Africa. The GCF Board approved the funding at its 46th meeting in Songdo, Republic of Korea, held from 26 to 29 October 2026.
Under the GCF supported programme, CI3 activity in South Africa and Namibia will cover green hydrogen production, downstream derivatives such as green ammonia and green methanol, and the decarbonisation of industries that are hard to abate. CI3 takes a diversified portfolio approach, investing across renewable energy generation, production, transport and end use infrastructure to support integrated industrial value chains.
The facility combines public and private capital, using catalytic funding to reduce risk so that institutional and commercial investors can participate. Its Development Tranche finances project development at an early stage, while its Construction Equity Tranches provide equity to carry projects through construction.
CI3 invests through two country specific affiliates of Climate Fund Managers: the SA-H2 Fund in South Africa and the SDG Namibia One Fund in Namibia. Of the US$140 million approved, US$84 million will go to the SA-H2 Construction Equity Tranche. The remaining US$56 million will be allocated to SDG Namibia One, made up of US$15 million for its Development Tranche and US$41 million for its Construction Equity Tranche.
The GCF financing will be delivered through the Southern African Industrial Decarbonisation Facility (SIDF), the GCF’s first platform dedicated to decarbonising industrial value chains in Africa. The Development Bank of Southern Africa (DBSA) is the GCF Accredited Entity for SIDF and is responsible for programme oversight, monitoring and reporting to the GCF.
The approval builds on a long relationship between Climate Fund Managers and the GCF, which includes earlier investments in Climate Investor One (renewable energy), Climate Investor Two (water, waste and oceans infrastructure) and the GAIA Climate Loan Fund, which provides debt financing for climate adaptation and mitigation projects. It also follows the GCF’s accreditation of Climate Fund Managers 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).
CI3 has already attracted significant backing from public and institutional investors. Its Development Tranche received initial commitments of €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 R3 billion (about US$182 million), with investment from South Africa’s Public Investment Corporation on behalf of the Government Employees Pension Fund, Sanlam Life, the Industrial Development Corporation of South Africa and DBSA, spread 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 for a Green eFuels Producers facility that will turn wastewater into green methanol. 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 the US$1.2 billion CI3 fundraising target, supporting the development and construction of energy transition and green hydrogen infrastructure across South Africa and Namibia.
Author: Bryan Groenendaal
