Turk Eximbank has announced an equity investment in Africa Finance Corporation (AFC). This move signifies a noteworthy step towards enhancing south-south cooperation and bolstering economic ties between Türkiye and Africa.
Undertaken on behalf of the Republic of Türkiye, this undisclosed investment marks Turk Eximbank’s inaugural venture in supporting an African entity.
AFC, an A3-rated investment-grade institution, has committed to deploying the funds to advance critical infrastructure projects fostering industrialization, value creation, and job opportunities across the African continent. This partnership reflects Türkiye’s dedication to addressing Africa’s infrastructure challenges through south-south collaboration.
Samaila Zubairu, President & CEO of AFC, underscores the significance of Turk Eximbank’s investment, stating, “This investment not only validates our efforts in addressing Africa’s infrastructure challenges but also underscores Türkiye’s commitment to fostering south-south cooperation.”
This investment is a milestone, as Turk Eximbank becomes AFC’s inaugural non-African sovereign shareholder. Ali Güney, CEO of Turk Eximbank, emphasizes their commitment to substantial collaborations benefiting Turkish exporters and construction companies, fostering sustainable economic growth in both regions.
This strategic investment builds upon AFC’s existing partnerships in Türkiye with leading engineering, procurement, and construction (EPC) firms. Previous collaborations include transformative projects such as the 300 MW Combined Cycle Gas (CCG) plant in Senegal and the 80MW peat-fired Independent Power Project (IPP) in Rwanda.
AFC’s recent exit from its 35% equity stake in Ghana’s Takoradi port to Türkiye’s Yilport Holdings exemplifies the corporation’s dedication to fostering synergies between Türkiye and Africa. Ongoing discussions with the Foreign Economic Relations Board of Türkiye (DEİK) and the Turkish Contractors Association hint at potential future collaborations.
Renowned for its strong credit profile, AFC has received funding support from various international entities, including the US Development Finance Corporation (DFC), Germany’s DEG, France’s Proparco, China Exim Bank, India Exim Bank, and major international and African commercial banks.
Turk Eximbank’s investment not only reinforces AFC’s financial strength but also signifies a profound commitment to advancing infrastructure development in Africa through strategic partnerships. As trade between Türkiye and Africa burgeons, this collaboration holds the potential to catalyze sustainable economic growth and development in both regions.
