(Ecofin Agency) - Developing cold storage chains for perishable goods is one of the strategies that can contribute to climate adaptation goals. The International Finance Corporation’s commitment could finance that strategy, to the tune of US$10 million, in Senegal and Morocco.

The International Finance Corporation (IFC) is expected to invest nearly US$10 million in equity for IFRIA, a cold storage service platform currently being deployed in Morocco and Senegal.

The transaction, which is pending approval, is a contribution to a US$68 million investment program unveiled by The Capital Quest platform. The program is expected to be funded by up to US$40 million of equity investment and the remaining by debt investments.

With its commitment, the IFC joins the American firm Pegasus Capital, which is investing in the project through the Subnational Climate Fund under its management.

On the eve of the 27th Conference on Climate Change (COP27), investors are committing more funds to climate mitigation projects. In early October 2022, African Infrastructure Investment Management, an entity owned by South African insurer Old Mutual, indicated that it was ready to invest nearly US$150 million to acquire 59.5% of Commercial Cold Holdings, an entity previously owned by Oceana Group.

In its recent Global Financial Stability Report, the International Monetary Fund (IMF) emphasizes the importance of private investment in financing climate goals by 2030. In emerging economies-African countries included, thousands of billions of dollars are needed to finance climate goals. However, raising such an envelope is still challenging.