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Canopy Trust - Central African Forest Initiative (CAFI)
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Canopy Trust

Countries: Regional
Topics: AgricultureDemographic Pressure+7
Status: Funds Transferred
Amount: $ 10,000,000
Start Date: 20/12/2025
End Date: 20/12/2030
Implementing Organizations: Catalytic Foundation
National Partners: -

The Canopy Trust Project, implemented by the Catalytic Finance Foundation, is a blended finance initiative designed to mobilize large-scale private investment for deforestation-free value chains in the Congo Basin. Launched in 2025, the project aims to attract at least USD 500 million in private capital by 2035 by using public funds as first-loss capital to de-risk investments and make sustainable projects bankable. It focuses on sectors such as agriculture, forestry, clean energy, and infrastructure, supporting projects that reduce deforestation while improving livelihoods. The facility provides technical assistance, concessional loans, guarantees, and performance-based incentives to catalyse green investments. Initial CAFI and donor commitments exceed USD 87 million, enabling pilot projects like integrated agroforestry systems in the DRC that combine charcoal production and cassava processing to curb slash-and-burn practices and cut emissions by up to 90%. The project aims to deliver climate resilience, biodiversity protection, and inclusive economic growth.

Canopy Trust combines technical assistance and catalytic finance to prepare and finance projects that reduce deforestation in Central Africa. It supports sustainable agriculture, forestry and energy solutions, and seeks to attract additional investment through direct project financing and investments in funds.

Timeline

2025
2026

Objectives

  • Bring sustainable agriculture, forestry and energy projects to the point where they can attract investment.
  • Use catalytic finance to reduce investment risks and mobilise additional capital for activities that reduce deforestation.
  • Support businesses and investment funds that combine forest protection with economic opportunities for communities.

Budget approved

Transferred

Objective of private capital mobilisation

Results to date

By 30 June 2026,
  • A pipeline of 97 project proposals was assessed to identify opportunities for investment in activities that reduce deforestation.
  • Six technical assistance grants were deployed to help project developers strengthen their technical preparation and business models, including four during the first half of 2026.
  • Two potential direct investments and one investment in a fund progressed through assessment. A broader search identified 50 investment funds and attracted 13 proposals, creating opportunities to channel finance to sustainable businesses across Central Africa.

Documents

Document Name Date Download
Project document - Canopy Trust - CFC 20/12/2026 Download