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AFC Announces Infrastructure Investment Collaboration with the Nigeria Sovereign Wealth Fund

A Platform for Accelerated Infrastructure Development in Nigeria

The Africa Finance Corporation (AFC) today formalised a strategic collaboration with the Nigeria Sovereign Investment Authority (NSIA), through the signing of a Memorandum of Understanding (MoU). Through this partnership, AFC and NSIA will collaborate to support the financing, development and implementation of infrastructure projects in Nigeria. Specifically, the parties will collaborate in the origination and execution of infrastructure investment transactions in Nigeria, leveraging mutual resources and capacity in the areas of project development, structuring, technical appraisal, due diligence and documentation. It is expected that this strategic collaboration will result in several co-investments by AFC and NSIA in critical economic infrastructure, for the long-term benefit of Nigeria.

The Federal Government of Nigeria through an Act of the National Assembly (the NSIA Act 2011) established the Nigeria Sovereign Investment

Authority (NSIA). The objective of the NSIA is to promote fiscal stability, build a savings base for future generations of Nigerians and enhance the development of Nigeria’s infrastructure. The NSIA’s investments are made through three distinct funds: The Stabilisation Fund, the Future Generations Fund, and the Nigeria Infrastructure Fund. Investments made under the MOU with AFC will be made through the Nigeria Infrastructure Fund.

AFC, a multilateral finance institution, was established in 2007 with a capital base of USD1.0 billion, to be the catalyst for private sector infrastructure investment across Africa. AFC fills a critical void in providing project structuring expertise and risk capital to address Africa’s infrastructure development needs, and is increasingly being seen as the benchmark institution for private sector investment in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications.

Andrew Alli, President & Chief Executive Officer of the Africa Finance Corporation said "The scale of Nigeria’s infrastructure investment requirement can only be addressed by structured collaboration between the public and private sectors. The opportunities to finance, develop and accelerate the implementation of much needed infrastructure in Nigeria, through a collaborative partnership with NSIA, will not only secure a platform for accelerated infrastructure investment, but also contribute to the economic growth and industrial development of Nigeria”.

Mr. Uche Orji, Managing Director of NSIA commenting on the collaboration said “We believe strategic partnership with organisations such as AFC is essential to fulfil the mandate of the Infrastructure Fund of the NSIA. The mandate of this fund is to enhance infrastructural development in Nigeria through strategic investments and provision of a platform for attracting foreign investments. Our relationship with AFC formalises our process of engagement in the joint execution of infrastructure projects in Nigeria”.
About AFC - www.africafc.org
AFC is an African-led international financial institution, established in 2007 whose mission is to improve African economies by proactively developing and financing infrastructure, industrial and financial assets. AFC is involved as an investor, developer and financier of various infrastructure projects, and is gaining recognition as the benchmark institution for financing the development of infrastructure projects in Africa. AFC is the lead investor in the award winning Cabeolica project, a USD90 million, 26MW landmark renewable energy wind power project in Cape Verde. AFC is the Technical Adviser to the Central Bank of Nigeria (CBN) on the CBN’s USD2.0 billion Power and Aviation Intervention Fund (PAIF). AFC is a partner with Vigeo Holdings Limited and Tata Power Delhi Distribution Limited for the acquisition of power distribution assets in the current Nigerian Government power sector privatisation round. Additionally in Nigeria, AFC made investments to support marginal field operators in the up and mid-stream oil and gas sector companies such as Neconde, FHN and Seven Energy. AFC is also the lead investor in Cenpower Generation Company Limited (Cenpower), which is implementing the Kpone IPP project – a 340 megawatt combined cycle gas turbine power plant in Tema, Ghana. AFC is the lead investor in the Main One fibre optic cable project, enhancing West Africa’s connection to Europe and the rest of the world through faster and more technologically advanced broadband capacity. AFC provided a USD50 million convertible debt investment in ARM Cement Limited (ARM), the second largest cement operator in Kenya to support expansion initiatives across Eastern and Southern Africa including; development and construction of a lime plant in Tanzania and expansion of ARM’s cement capacity in Kenya. The transaction marked AFC’s first bilateral investment in Kenya. AFC provided financing for Ethiopian airlines fleet expansion in the acquisition of Africa’s first Boeing 777 airline. AFC also invested in the Bakwena toll road project in South Africa and the EURO 270 million Konan Bedie Toll bridge in Côte d’Ivoire, the landmark transport PPP project in Francophone Africa, underscoring its interest in investing in PPPs/PFIs in its focal sectors across the African continent. AFC has launched a landmark USD15 million project development facility with the Dutch Development Bank FMO, to fund early-stage equity investments in projects under development pre-financial close, in the infrastructure sector across sub-Saharan Africa.
About NSIA – www.nsia.com.ng
The Nigeria Sovereign Investment Authority (NSIA) was set up by an Act of Nigeria’s National Assembly (the NSIA Act) in 2011. The objective of the NSIA is to promote fiscal stability, build a savings base for future generations of Nigerians and enhance the development of Nigeria’s infrastructure. The NSIA’s investments are made through three distinct funds: The Stabilisation Fund, the Future Generations Fund, and the Nigeria Infrastructure Fund. Investments made under the MOU with AFC will be made by the Nigeria Infrastructure Fund. For more information, visit the NSIA’s website at www.nsia.com.ng

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