The African Development Bank (AfDB), Africa’s highest investment-grade rated (AAA with stable outlook) multinational financial institution, has invested US$50mn in the equity of Africa Finance Corporation (AFC)
The Bank Group’s investment in AFC is set to enable both institutions to accelerate infrastructure development and delivery on the continent by deepening co-financing opportunities, joint implementation, knowledge transfer and capacity development for the benefit of Africa.
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 mobilise 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. The AfDB will have representation on the AFC Board of Directors as part of the equity investment.
Samaila Zubairu, president and CEO of AFC, commented, “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.”
Dr Akinwumi A Adesina, president, AfDB, remarked, “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.
