The African Finance Corporation (AFC) and the African Development Bank (AfDB) signed a long-term line-of-credit agreement worth $350 million at COP28 in Dubai this week.
The collaboration is a significant milestone in a long-standing relationship between the two institutions.
The financing agreement will enable the AFC to mobilise additional resources towards continued development of infrastructure projects in its focus sectors: power, transportation, telecommunications, and natural resources. These projects played a pivotal role in closing Africa's infrastructure deficit and creating new opportunities for economic growth and prosperity on the continent, the institutions said in a joint statement.
Speaking at the signing ceremony, AFC board member and executive director of financial services, Sanjeev Gupta, said: "AFC and AfDB have enjoyed a mutually beneficial partnership for over a decade and this collaboration further drives our shared vision for a prosperous, resilient, and sustainable Africa. Through this long-term funding, we are empowered to effectively mobilise capital for infrastructure projects that will unlock the continent's economic potential, create jobs, and improve the quality of life for millions of Africans."
AfDB vice president for private sector, infrastructure and industrialisation, Solomon Quaynor, said the partnership exemplified a commitment to catalysing sustainable development across the continent.
"Through this line of credit, the two institutions, together, forge a path toward economic empowerment, infrastructure growth and a brighter future for Africa," he said.
The African Development Bank became a shareholder in AFC in 2018, resulting in co-investments in multiple transformational infrastructure projects in Africa over the years.
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 AFC appointed project lead.
The AFC was established in 2007 to be the catalyst for private sector-led infrastructure investment across Africa. AFC's approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to confront Africa's infrastructure development needs and drive sustainable economic growth.
AFC has 42 member countries and has invested $12.7 billion across Africa since inception.
