The Africa Finance Corporation (AFC), a leading infrastructure solutions provider on the continent, has signed a long-term line of credit worth USD 350 million with the African Development Bank (AfDB). The announcement was made during the ongoing 28th Conference of the Parties (COP 28).
“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,” stated Sanjeev Gupta, AFC Board Member and Executive Director of Financial Services
The new financing agreement will enable the AFC to mobilise additional resources for the continued development of infrastructure projects in key sectors such as power, transportation, telecommunications, and natural resources.
Both the AFC and AfDB have a history of successful collaboration, with the latter becoming a shareholder in AFC in 2019. Together, they have co-invested in several 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 the development of the Lobito Corridor expansion. With the railway expansion hoping to connect the resource rich Democratic Republic of Congo and Zambia with Lobito an Angolan port, providing direct access to international markets for these landlocked countries.
“The partnership between the African Development Bank and the AFC exemplifies a shared commitment to catalyzing sustainable development across the continent,” said Solomon Quaynor, Vice President – Private Sector, Infrastructure & Industrialization at AfDB during the signing event.
Leveraging its high investment-grade credit ratings (A3 by Moodys’) one of the best on the continent AFC is able to achieve among the lowest borrowing costs of any institution in Africa. Which it then uses in developing infrastructure projects continent wide.
