Turkey Joins Africa Finance Corporation With New Equity Investment

By Adedapo Adesanya

Turkey has joined the Africa Finance Corporation (AFC) as its first non-African sovereign shareholder following an equity investment from Turk Eximbank.

AFC, an infrastructure solutions provider, announced that the equity subscription from Turkey’s official export credit agency will advance its mission to be the bridge between Africa and global stakeholders wishing to play a key role in the continent’s development and prosperity.

According to a statement on Friday, Turk Eximbank’s investment in AFC is its first in an African entity and aligns with Turkey’s strategic vision of fostering resilient and sustainable growth in Africa, as outlined in the government’s Africa Partnership Policy, underlining the relevance of AFC to deliver on these aspirations.

“AFC’s unique and proven business model of developing sustainable and impactful projects on the continent with the support of both African public and private sector capital makes it a reliable long-term partner for successfully expanding Türkiye’s considerable development agenda on the continent.

“Turkey has been a steadfast ally in Africa’s development journey, evidenced by its position as a strategic partner of the African Union and its strong advocacy for Pan-Africanism,” the statement said.

The country has played a crucial role in catalysing both public and private investment in growth-enhancing sectors across the continent.

Turkey is one of the leading development and commercial partners for Africa, with trade increasing to $40.7 billion in 2022, from $5.4 billion in 2003.

Speaking on the development, Mrs Samaila Zubairu, President & CEO of AFC said “We are delighted to welcome Turk Eximbank as the first non-regional sovereign shareholder of AFC. This investment not only validates our efforts in addressing Africa’s infrastructure challenges but also underscores Turkey’s commitment to fostering south-south cooperation.

“As a testament to the increasing global interest in AFC’s mission, this prestigious endorsement from a non-African entity of such calibre amplifies our dedication to advancing Africa’s development. Through this partnership, we aim to continue building the infrastructure that will foster industrialization, value capture and retention in Africa as well as create quality jobs for Africa’s growing population.

“We eagerly anticipate further collaborations with Türkiye, a nation that demonstrates a profound dedication to supporting Africa’s growth and prosperity in multiple critical sectors.”

On his part, Mr Ali Güney, CEO of Turk Eximbank, commented: “We take great pleasure in announcing our strategic partnership with Africa Finance Corporation. This noteworthy investment exemplifies our dedication to facilitating substantial collaborations that will provide crucial support to Turkish exporters and construction companies, thus catalysing sustainable economic growth and development within both regions, a collaboration that signifies a profound commitment to fostering synergies between Türkiye and Africa.

“We aim to contribute actively to the strategic initiatives of the AFC and our commitment extends beyond mere participation, as we strive to fortify the economic bonds between Türkiye and the AFC member states, transcending geographical boundaries and nurturing a relationship that is harmonious, equitable, and mutually enriching.

The investment extends AFC’s already existing strong partnerships in Turkey with leading engineering, procurement, and construction (EPC) firms for the financing and development of transformational infrastructure projects in Africa.

These include the 300 MW Combined Cycle Gas (CCG) plant in Senegal, developed by Calik Enerji, and the development and construction of an 80MW peat-fired Independent Power Project (IPP) in Rwanda by Hakan Madencilik A.S. Most recently, AFC exited its 35 per cent equity stake in Ghana’s Takoradi port to Turkey’s Yilport Holdings, one of the world’s leading port operators.

AFC is also in ongoing discussions with the Foreign Economic Relations Board of Turkey (DEİK) and the Turkish Contractors Association, further cementing its commitment to unlock new business opportunities and enhance bilateral trade and cooperation between the country and Africa.