Finance

RMB’s Beijing office to boost Africa-China investment

Chinese investment in Africa is at an all-time high (Image source: Adobe Stock)

South Africa's Rand Merchant Bank (RMB) has opened an advisory office in Beijing, aimed at strengthening ties with Chinese corporates and supporting growing investment into African markets

The launch of Rand Merchant Advisory Company Limited comes as trade between China and Africa exceeds US$350bn, an all-time high, reflecting deepening commercial links across infrastructure, energy and industrial development.

The Beijing office is expected to provide Chinese companies with on-the-ground advisory support as they explore opportunities across Africa, offering expertise in corporate finance, cross-border banking, foreign exchange and structured capital.

Emrie Brown, RMB’s CEO, said it marks an important milestone in the group’s Africa-China corridor strategy.

“It brings us closer to Chinese corporates to connect them more effectively with opportunity across our African network,” said Brown.

“Our focus is on helping clients navigate cross-border trade, transactional banking, foreign exchange, and investment flows with the benefit of local insight and deep African market expertise.”

For African economies, the move signals continued confidence in the continent as a destination for Chinese investment.

The Africa-China corridor’s growth continues to be anchored by “monumental infrastructure investment”, RMB said in a statement, and a rapidly evolving green energy landscape.

Over the past decade, Chinese enterprises have constructed or renovated over 10,000 km of railway and 100,000 km of highways across Africa.

While Chinese firms have traditionally focused on transport and infrastructure projects, investment is increasingly expanding into renewable energy, manufacturing and other sectors that support broader industrialisation.

As China itself transitions under global climate agreements, “massive opportunities” have emerged for Rand Merchant Advisory to partner with Chinese contractors to lead sustainable finance initiatives across African markets.

The bank said Chinese contractors have participated in around 70% of the renewable energy projects it has concluded in recent years, underlining China’s growing role in Africa’s own energy transition.

RMB said the expansion combines its investment banking capabilities with First National Bank’s (FNB) transactional banking platform, which already serves more than 4,000 Chinese business accounts across South Africa and the wider continent.

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AFC announces financial close on Lobito Corridor Railway Project

Lobito is a strategic project connecting central and west African markets to the USA. (Image source: AFC)

Africa Finance Corporation (AFC) has announced the financial close of the US$753mn Lobito Corridor Railway Project in Angola

It marks a major milestone for one of Africa's largest and most strategic cross-border transport infrastructure developments.

The project will fund the rehabilitation, upgrade and long-term operation of a 1,300-kilometre rail corridor linking the Port of Lobito on Angola's Atlantic coast with the border of the Democratic Republic of Congo (DRC).

The railway is expected to improve regional connectivity, facilitate trade and strengthen access to international markets for a variety of mineral deposits out of the DRC.

"The financial close of the Lobito Corridor Railway Project underscores AFC's leadership in delivering complex transformational infrastructure that advances Africa's industrialisation and regional integration,” said AFC’s president and CEO Samaila Zubairu.

“As one of the continent's most strategic transport corridors, the project will strengthen regional connectivity, facilitate trade and unlock new opportunities for economic growth across Angola and the wider region.”

AFC acted as co-financial adviser alongside Eaglestone, helping to structure and mobilise financing for Lobito Atlantic Railway S.A. (LAR), the concessionaire responsible for the project.

LAR is a joint venture between construction firm Mota-Engil and commodities trader Trafigura.

The financing package includes US$553mn from the US International Development Finance Corporation (DFC) and US$200mn from the Development Bank of Southern Africa (DBSA), following financing agreements signed late last year.

Eaglestone founding partner Nuno Gil described the agreement as “the culmination of years of work and a defining moment for infrastructure finance in sub-Saharan Africa.”

He also said the deal demonstrated that “complex, multi-lender, cross-border project financings can be structured and successfully closed on the continent.”

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Africa can still thrive amid geopolitical upheaval, says Afreximbank

Africa can still thrive amid global geopolitical upheaval (Image source: Adobe Stock)

Africa has an opportunity to convert geopolitical tensions and shifting global trade patterns into a catalyst for industrialisation and long-term economic resilience, according to a new Afreximbank report

Leveraging Geopolitics for Trade and Industrialisation in Global Africa examines trade and economic developments across the continent and globally, and outlines strategies for African nations to benefit from supply chain realignments and changing geopolitical dynamics.

“Africa stands at a critical juncture,” said Dr Yemi Kale, group chief economist and managing director of research and trade intelligence at Afreximbank.

“Geopolitical tensions and economic fragmentation are reshaping global trade patterns, but they also present a historic opportunity for the continent. By strategically leveraging these shifts, Africa can build a more resilient, competitive and inclusive economic future.”

Despite a challenging global backdrop, the report highlights Africa’s strong recent economic performance.

While global economic growth slowed to 3.4% in 2025 and is projected to ease further to 3.1% in 2026, Africa’s real GDP growth accelerated from 3.4% in 2024 to 4.5% in 2025, outperforming the global average.

Africa’s merchandise trade also expanded by 6.1% to approximately US$1.5 trillion, while aggregate inflation fell significantly from 21.6% in 2024 to 13.1% in 2025.

According to Afreximbank, these gains reflect improved macroeconomic management, ongoing policy reforms and the role of development finance institutions in supporting economic stability.

However, the report warns that significant structural challenges remain.

Africa’s trade finance gap is estimated at approximately US$74bn in 2025, limiting the continent’s ability to fully capitalise on trade and industrial opportunities.

The situation is compounded by foreign exchange constraints and a continued decline in correspondent banking relationships.

The report also notes that evolving shipping routes and persistent disruptions in global logistics networks are increasing freight costs and extending delivery times, particularly for economies dependent on imported inputs and external markets.

To strengthen resilience, Afreximbank identifies accelerated implementation of the African Continental Free Trade Area (AfCFTA), expansion of the Pan-African Payment and Settlement System (PAPSS) and reforms to the global financial architecture as key priorities.

The report notes that stronger industrial ecosystems, increased intra-African trade and sustained financial support will be critical if the continent is to transform geopolitical disruption into sustainable and inclusive economic growth.

“It is imperative for the continent to act decisively to strengthen regional value chains, deepen industrial capacity, expand access to trade finance, and accelerate continental integration,” said Kale, adding that Africa “cannot afford to delay.”

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EAAIF backs Africa’s first sustainable aviation fuel plant

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African boost for sustainable aviation fuels (Image source: Adobe Stock)

Africa’s first privately-financed sustainable aviation fuel (SAF) plant has secured funding from the Emerging Africa & Asia Infrastructure Fund (EAAIF) and various Middle Eastern investors

The deal expands EAAIF’s footprint into the Middle East North Africa (MENA) region, following its ongoing expansion into Asia.

The US$212mn clean fuels project, located in Egypt’s Sokhna Special Economic Zone, will be owned and operated by Green Sky Capital Limited together with its local subsidiary, SAF Fly Egypt.

EAAIF, a Private Infrastructure Development Group (PIDG) company managed by Ninety One, supported a senior secured loan of US$40mn for the development of the plant.

The transaction marks the first project-financed SAF plant in the MENA region.

The facility is designed to produce 200,000 tonnes per annum of biofuels, including SAF, Hydrotreated Vegetable Oil (HVO), bio-propane and bio-naphtha and will utilise commercially proven Hydroprocessed Esters and Fatty Acids (HEFA) technology to convert waste-based feedstock into high-grade sustainable fuel.

To ensure long-term bankability, the transaction will be anchored by Shell who will purchase the facility’s products on a take-or-pay basis and act as its primary feedstock provider.

Martijn Proos, co-head of emerging market alternative credit, Ninety One, the fund manager of EAAIF, said the transaction arrives at a critical juncture for the global energy market.

“Amid heightened geopolitical volatility and energy market uncertainty, this first-of-its-kind facility provides a practical solution to advancing both decarbonisation and energy security,”he said.

“By acting as the global mandated leadarranger, Ninety One and EAAIF are demonstrating how institutional capital can be mobilised to support the decarbonisation of hard-to-abate sectors like aviation, which is projected to account for 5% of global emissions by 2050 without intervention.”

The project is being developed with the support of regional sponsors, including Al Mana Holding, a Qatari diversified conglomerate, and Vision Invest, a Saudi Arabian infrastructure investor and developer.

Ninety One acted as the global mandated lead arranger and coordinating lender, facilitating the mobilisation of a total debt package of US$142.9mn with a US$40 million commitment from EAAIF and Ninety One’s Emerging Markets Transition Debt (EMTD) Fund.

Ninety One has also mobilised the participation of Qatar National Bank (QNB) via its Egyptian subsidiary, QNB S.A.E, with a commitment of up to US$31.4mn.

The debt financing was completed by The Arab Energy Fund, which acted as co-MLA and global structuring lender committed US$71.4mn to the project.

SAF is estimated to offer up to an 80% reduction in CO₂ emissions, compared to conventional jet fuel, supporting the aviation industry’s target of reaching net-zero by 2050.

The project's strategic location near the Suez Canal offers a direct export route to key demand centres in the EU and UK, which are currently implementing strict SAF mandates.

The transaction also demonstrates strong appetite among regional and international lenders for renewable fuels infrastructure, supporting both energy security and price stability amid heightened global volatility.

“Emerging markets have been transitioning toward renewables and cleaner energy sources for some time, driven by rising energy costs and the need to strengthen energy security,” said Alper Kilic, head of alternative credit, Ninety One.

“This investment highlights the critical role long-term capital plays in scaling next-generation energy infrastructure in emerging markets.”

He added that sustainable aviation fuel is “one of the most compelling – and challenging – decarbonisation pathways” requiring proven technology and strong commercial structures to deliver at scale.

“This project demonstrates how institutional investors can pursue attractive risk-adjusted returns while supporting the real-economy transition, and underscores the growing opportunity for transition debt strategies to finance high-impact assets in hard-to-abate sectors.”

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Supply chain funding boost for Africa

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Finance boost for Africa’s supply chain sector (Image source: Adobe Stock)

Standard Chartered and the International Finance Corporation (IFC) have announced a new risk sharing facility aimed at strengthening supply chains across Africa

The partnership will introduce supply chain finance solutions in eight markets – Ivory Coast, Egypt, Ghana, Kenya, Nigeria, South Africa, Tanzania and Zambia – supporting companies in key sectors such as agriculture, healthcare and manufacturing.

The facility aims to help ensure suppliers get faster payments, freeing up working capital to improve production, pay wages and hire.

The risk-sharing facility will cover up to US$300mn in supply chain and trade finance assets originated by Standard Chartered in Africa.

It comprises a range of underlying supply chain financing instruments – such as payables finance, receivables discounting and pre-shipment finance programmes – to help smaller firms get paid earlier, reduce the cost of working capital, and invest in growth.

“This US$300mn facility with IFC underscores our shared commitment to strengthening Africa's supply chains and enabling sustainable business growth,” said Dalu Ajene, chief executive and head of coverage, Standard Chartered Africa.

“As a super-connector bank with deep expertise across key trade corridors linking Africa to Europe, Asia, the Middle East and the Americas, we are uniquely positioned to channel capital and innovation into the real economy. By expanding access to supply chain finance, we are helping African companies unlock liquidity, manage risk, and invest with confidence.”

Ajene said the collaboration unites Standard Chartered’s cross-border expertise with IFC’s development mandate to empower businesses – from major corporations to smaller local suppliers – “to engage more actively in regional and global trade, fostering job creation and promoting inclusive growth.”

IFC will provide guarantees for up to US$150mn from its own account, with US$100mn committed as the first tranche under the scheme, to support transactions in both US dollars and selected local currencies.

Over the next three years, the partnership is projected to enable about US$1.9bn in supply chain finance transactions, providing access to finance for firms across Africa.

It aims to support more than 500 suppliers, including small and medium enterprises (SMEs), in both domestic and global value chains, with the potential to indirectly benefit over 1 million farmers.

“Supply chain finance is among the fastest ways to narrow the growing finance gap that businesses, particularly small and medium enterprises, are facing in emerging economies,” said Mohamed Gouled, IFC’s vice president, products & clients.

“By partnering with Standard Chartered to support companies at the center of strategic value chains, we can unlock much-needed working capital at scale for businesses across Africa, including smaller firms and farmers, making supply chains more competitive and boosting job creation.”

According to IFC, global demand for supply chain finance has surged – in 2025, the estimated volume reached about US$2.7trn, showing an 8% increase year-on-year.

Yet supply chain finance has not scaled at the same pace in emerging markets, it says, especially in lower income and fragile contexts, largely because commercial banks tend to focus on developed markets.

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