AfDB Pumps $50m into AFC to Rush Infrastructure Devt. in Africa

The sum of $50 million has been invested in Africa Finance Corporation (AFC), a leading infrastructure solutions provider in Africa, by the African Development Bank (AfDB) Group, Africa’s highest investment-grade rated (AAA with stable outlook) multinational finance institution. As part of the equity investment, AfDB will have representation on the AFC Board of Directors.

A statement issued by AfDB explained that the investment is aimed to enable both institutions to fast-track infrastructure development and delivery on the continent of Africa.

Also, the deal is expected to deepen co-financing opportunities, joint implementation, knowledge transfer and capacity development for the benefit of Africa.

With the shareholding investment of $50 million in AFC’s equity, the bank group becomes the second investment-grade Supranational Finance Institution to join and invest in AFC.

It was stated that the addition of the AfDB as a shareholder and development finance institution member of AFC complements the corporation’s strategy of addressing Africa’s infrastructure deficit.

It also marks a further step in the bank’s undertaking to help reduce poverty, improve living conditions for Africans and mobilize resources for the continent’s economic and social development.

The equity investment in AFC further broadens its shareholder base and follows recent equity investments in the Corporation by African Re-Insurance Corporation and the Republic of Ghana.

President and CEO of AFC, Samaila Zubairu, said, “AFC welcomes the African Development Bank Group as a shareholder and strategic partner, with whom we would continue our collaboration journey to address Africa’s Infrastructure deficit and challenging business environment. AFC’s mandate is a strategic fit for the Bank’s objective to integrate, energize and industrialise Africa.”

President of AfDB, Mr Akinwumi Adesina, noted that, “We share AFC’s vision of developing Africa-led responses to the continent’s socio-economic development. To date, we have worked jointly to deliver transformational projects with tangible impact over the years.

“This development is therefore a natural evolution in our partnership, which in turn, will result in delivering solutions to Africa’s infrastructure challenges at a faster pace. These solutions will adopt the highest standards, generate value to stakeholders, and foster sustainable development and economic growth across the African continent.”

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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