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AFC and Banque Ouest Africaine de Développement Establish Infrastructure Investment and Promotion Partnership

Trade and Project Finance collaboration for economic development

The Africa Finance Corporation (AFC) and Banque Ouest Africaine de Développement (BOAD) have formalised a strategic collaboration to promote infrastructure development across West Africa by signing a Memorandum of Understanding (MoU) at the BOAD headquarters in Lomé, Republic of Togo. The MoU is designed to provide a framework for co-operation and collaboration, and facilitate both direct investment and co-financing of infrastructure projects, further harmonising institutional efforts to promote trade finance, project finance and economic development across West Africa. Specifically, the parties will collaborate in the origination and co-financing of critical regional economic infrastructure transactions, leveraging mutual resources and capacity in the areas of project finance and structuring, trade finance, technical appraisal and due diligence. It is expected that this strategic collaboration will result in several co-investments by AFC and BOAD in French and Portuguese speaking West African States.

AFC, a multilateral finance institution, was established in 2007 with an initial capital base of USD1.0 billion, to be a catalyst for private sector infrastructure investment across Africa. AFC was established to help fill 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-led investment in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications.

Banque Ouest Africaine de Développement (BOAD), also known as the West African Development Bank, is an international multilateral development bank established in 1973 to serve the nations of Francophone and Lusophone West Africa. BOAD is organised by the Central Bank of West African States and its eight member governments: Benin, Burkina-Faso, Côte d'Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo. It aims to promote the balanced development of its member states and to achieve economic integration in West Africa. BOAD’s mandate is to provide financing for priority projects in rural development, the environment, infrastructure, telecommunications, energy, industry, transport, agribusiness, tourism and other services.

Andrew Alli President & CEO, AFC commenting on the partnership said “This MoU provides a strong framework for BOAD and AFC to strengthen our commitment to the economic development of West Africa, through the facilitation of trade and provision of crucial infrastructure. I believe this partnership is a positive step towards greater co-operation. I would like to thank BOAD for their proactive approach to consolidating this partnership, and we look forward to working closely with them to deliver infrastructure investment solutions on the continent."

Cristian Adovelande, President of BOAD said “Africa’s growth requirement and its vast reserves of natural resources, particularly in West Africa, cannot be harnessed without increased collaboration in financing and project development between Public and Private sector Institutions. We believe strategic investment collaboration with organisations such as AFC, is essential in the fulfilment of our mandate to enhance economic development across our member states in West Africa. Our relationship with AFC formalises our process of engagement in the joint financing of trade and infrastructure projects”.

About AFC -

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. To execute its mandate, AFC has established partnerships regionally, with other institutions such as the African Development Bank, African Export-Import Bank PTA Bank, Islamic Development Bank, , the Nigerian Sovereign Investment Authority (NSIA); and Internationally with the China Africa Fund, the Infrastructure Development Finance Company of India (IDFC), FMO and the US Government through USAID in the US Presidential “Power Africa Initiative”.

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 privatization 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 in the EURO 270 million Konan Bedie Toll Bridge in Côte d’Ivoire; the signature Transport PPP project in Francophone Africa, underscoring its interest in investing in PPPs/PFIs in its focal sectors across the African continent. AFC launched a landmark USD15 million project development facility with the Dutch Development Bank FMO in January 2013, to fund early-stage equity investments in projects under development pre-financial close, in the infrastructure sector across sub-Saharan Africa.