Africa Finance Corporation Signs US$350 Million Long-term Line of Credit with African Development Bank for Infrastructure
Dubai, United Arab Emirates, 5th December 2023 – Africa Finance Corporation (AFC), the leading infrastructure solutions provider on the continent, today announced that it has signed a US$350 million long-term line of credit with the African Development Bank (AfDB). The agreement, which was signed during the ongoing 28th Conference of the Parties (COP 28), supports urgently needed financing for infrastructure projects to underpin sustainable development and economic growth.
The collaboration is a significant milestone in a long-standing relationship, with AfDB becoming a shareholder in AFC in 2019, and the institutions co-investing in multiple transformational infrastructure projects. Most recently, both institutions joined the US, EU and governments of Angola, the Democratic Republic of Congo and Zambia in signing a Memorandum of Understanding for development of the Lobito Corridor expansion, with AFC appointed lead project developer.
The financing agreement with AfDB will enable AFC to mobilise additional resources towards continued development of infrastructure projects in its focus sectors, including power, transportation, telecommunications, and natural resources. These projects play a pivotal role in closing Africa’s infrastructure deficit and creating new opportunities for economic growth and prosperity.
Speaking at the signing ceremony, AFC Board Member and Executive Director of Financial Services, Sanjeev Gupta, said: “AFC and AfDB have always enjoyed a mutually beneficial partnership and this facility further embeds our shared vision for a prosperous, resilient, and sustainable Africa. It is crucial that premier institutions in Africa work together and share knowledge, capacity and collectively negotiate on behalf of Africa to drive a development agenda that is both pragmatic and sustainable and ensures that it creates economic prosperity through local manufacturing, value addition and a shift away from the historic extraction and export driven model that has plagued the continent. We welcome the opportunity to widen and deepen our collaboration and deliver on our mandate that will unlock the continent’s economic potential, create jobs, and improve the quality of life for millions of Africans.”
“The partnership between the African Development Bank and the AFC exemplifies a shared commitment to catalysing sustainable development across the continent," said Solomon Quaynor, Vice President – Private Sector, Infrastructure & Industrialization, at African Development Bank.
“Through this line of credit, the two institutions, together, forge a path toward economic empowerment, infrastructure growth and a brighter future of Africa.”
AFC has one of the highest investment-grade credit ratings on the continent (A3 by Moody’s), which it leverages to achieve among the lowest borrowing costs of any institution in Africa for deployment in developing critical infrastructure projects. The latest agreement underscores the power of leading African multilaterals, combining the strength of their resources and expertise, to drive rapid industrialisation and generate millions of jobs essential for the burgeoning youth population, enhancing the value of Africa's raw materials and catalysing overall economic expansion.
About AFC
AFC was established in 2007 to be the catalyst for private sector-led infrastructure investment across Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.
Sixteen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 42 member countries and has invested US$12.7 billion across Africa since inception.
About the AfDB
The African Development Bank Group is Africa’s premier Development Finance Institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states thus contributing to poverty reduction. The AfDB’s actions focuses on the key development sectors including infrastructure, agribusiness, financial institutions, health, education…. Its operations aim to strengthen the contribution of private players to the achievement of the Sustainable Development Goals (SDGs). To this end, the AfDB provides financing to companies whose activities contribute to creating jobs and decent incomes, providing essential goods and services and combating climate change.
Media Enquiries:
Yewande Thorpe
Communications
Africa Finance Corporation
Mobile : +234 1 279 9654
Email : yewande.thorpe@africafc.org