GCA Supports World Bank’s Landmark Facility to Catalyze Climate-Resilient Housing in Africa
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AIROBI / ROTTERDAM, 10 June 2025 — The Global Center on Adaptation (GCA), in partnership with the World Bank and the Eastern and Southern African Trade and Development Bank (TDB), has today launched GCA’s technical assistance for the Africa Green, Resilient and Inclusive Housing De-Risking (GRIHD) Facility — a groundbreaking initiative that will mobilize over half a billion dollars in private capital to address the urgent housing and climate adaptation needs across Africa.
Africa currently faces an estimated US$2.5 billion annual investment gap in the housing sector, with much of the new housing stock expected to be delivered by the private sector. However, inadequate planning regulations, limited climate-risk-informed design, and a lack of financing options have left millions exposed to climate disasters such as flooding and extreme heat. The GRIHD Facility seeks to change this trajectory by mobilizing large-scale private investment while embedding climate resilience at every stage of the housing value chain.
The GRIHD Facility is designed to unlock US$440 million in private capital to support the development of climate-resilient housing across select countries in the eastern and southern African region. The objective is to strengthen climate resilience across the housing sector by investing in sustainable building materials, technologies, green infrastructure, and affordable housing solutions tailored to the continent’s rapidly urbanizing population. The Facility will be implemented through a dedicated Special Purpose Vehicle (SPV) hosted within TDB, enabling the deployment of de-risking financial products through participating financial institutions. These tools are designed to attract and sustain private investment into climate-resilient construction and renovation projects.
Franz Drees-Gross, Acting Director for Regional Integration at the World Bank said: “As the World Bank continues to champion sustainable growth across Africa, the Africa Green, Resilient and Inclusive Housing De-Risking (GRIHD) Facility represents a pivotal step towards transforming housing markets in the region. By leveraging innovative approaches and strategic partnerships, we are committed to creating a future where every individual has access to safe, sustainable, and affordable housing. This project exemplifies our dedication to the regional economic growth through innovation.”
The Global Center on Adaptation will provide tailored technical assistance to bolster climate-risk informed financing across the housing sector value chain. By strengthening the link between local climate hazards and relevant adaptation solutions in the housing sector, GCA will support decision-making of the SPV and participating financial institutions when identifying and prioritizing climate resilience solutions for financing.
Professor Patrick V. Verkooijen, President and CEO of the Global Center on Adaptation, said:
“Housing is not just a roof over one’s head — it is an engine of economic opportunity, a buffer against climate extremes, and a frontline of human dignity. With our support for the GRIHD Facility, we are not only addressing Africa’s growing housing needs — we are climate-proofing cities, empowering local financial institutions and de-risking the future.”
GCA will create a standardized market assessment methodology — a practical tool for the World Bank, TDB, and other GRIHD partners to consistently identify and prioritize adaptation investments across housing value chains, informed by rapid climate hazard assessments, value chain analyses, and market opportunity reviews. This methodology will be piloted in one GRIHD country, refined based on lessons learned, and prepared for broader application.
In addition, GCA will develop a dedicated training module on financing climate-resilient housing, which will complement its Masterclass on Adaptation Finance. This training will strengthen the long-term capacity of TDB, the SPV, and participating financial institutions by equipping them with the tools to evaluate and finance resilient housing solutions.
The World Bank and GCA’s collaboration under the GRIHD Facility comes at a pivotal moment, as the international community looks ahead to the Fourth International Conference on Financing for Development in Seville and seeks practical, scalable models to deliver on the promises of the Summit of the Future and the Nairobi Declaration. The engagement embodies a forward-looking model for climate finance — one that bridges the gap between the urgent need for housing and the imperative of climate resilience, while drawing on the strengths of multilateral cooperation, blended finance, and private sector innovation.
