INSTRUMENT ANALYSIS

The Catalyst Climate Resilience Fund (CCRF) is a blended finance vehicle designed to support pre-seed climate adaptation startups in Africa. It provides an initial USD 200,000 investment per company, split between cash and venture-building support from BFA Global. The fund targets a total size of USD 40 million, utilizing a tiered capital structure with first-loss protection to attract commercial investors. Its investment thesis focuses on three verticals: fintech for resilience, sustainable livelihoods, and climate-smart essential services. The fund has already completed its first close of approximately USD 8.5 million in August 2023 and has made 10 initial pre-seed investments across several African nations.

• The CCRF is positioned as the only pre-seed equity fund in Africa specifically focused on climate adaptation, filling a gap in the early-stage pipeline for later-stage adaptation ventures.
• The fund employs a unique investment structure where a USD 200,000 pre-seed investment is divided: USD 100,000 is provided as cash and USD 100,000 is paid to BFA Global for dedicated venture-building support.
• Financial modeling for the 10-year fund suggests a conservative internal rate of return (IRR) of approximately 20%, provided that Series-A exits achieve average multiples of 3x or higher.
• To mobilize private capital, the CCRF uses a blended finance structure intending to deploy USD 15-20 million in concessional capital as junior and philanthropic equity tranches to provide first-loss protection for senior commercial investors.
• The fund's investment strategy is organized into three thematic verticals: fintech for resilience (e.g., insurance, carbon finance), sustainable livelihoods (e.g., ag tech, fishery management), and climate-smart essential services (e.g., water management, cooling).
• As of September 2023, the fund has achieved its first close of approximately USD 8.5 million and has completed 10 pre-seed investments in Egypt, Kenya, Morocco, Senegal, Uganda, and Nigeria.
• The fund aims to reach a total of USD 40 million in assets and plans to expand its model to other climate-vulnerable regions, specifically Latin America and Asia, after the African pilot phase.
• The fund's impact framework includes a commitment to gender diversity, targeting at least 40% women founders and ensuring 80% of the portfolio is led by local co-founders.

APA

Climate Policy Initiative (2023). INSTRUMENT ANALYSIS. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/09/CCRF_Instrument-Analysis.pdf

Chicago

Climate Policy Initiative. INSTRUMENT ANALYSIS. 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/09/CCRF_Instrument-Analysis.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=INSTRUMENT ANALYSIS |date=September 2023 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2023/09/CCRF_Instrument-Analysis.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2023instrument, author = {{Climate Policy Initiative}}, title = {{INSTRUMENT ANALYSIS}}, institution = {Climate Policy Initiative}, year = {2023}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/09/CCRF_Instrument-Analysis.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }