Impact for Africa - Solutions for sustainable development

The global context in 2023 was defined by the historical cycle of monetary policy tightening as major central banks synchronised the fastest interest rate hikes for at least two decades in response to surging inflation, initially caused by higher food and energy prices, as well as bottlenecks in supply chains. Major economies struggled for growth but managed to avert recession. Tightening financial conditions, the strengthening US dollar, challenges with foreign currency availability for some, and the reduced debt affordability of many African sovereigns meant AFC’s operating environment was especially challenging. Notably, for the first time in our 17-year history, AFC successfully navigated a substantially elevated interest rate environment, underscoring the need for enhanced diligence in managing our funding programmes and ensuring the resilience of our borrowers against higher interest rates. AFC's agility, fortified by strong partnerships with a diverse array of debt investors, and our solutions-oriented approach were pivotal in successfully steering us through this period. Our ability to adapt and respond to dynamic market conditions highlights our core strengths in establishing a flexible yet resilient institution capable of navigating crises while steadfastly pursuing our mission to accelerate developmental impact across Africa.

Press release