The African Development Bank Group (AfDB) has signed a €120 million non-sovereign partial credit guarantee (PCG) with Mota Engil Africa, marking the bank’s first direct support for the African engineering, procurement and construction (EPC) company. The agreement, officially signed at AfDB headquarters in Abidjan, forms the basis for a €170 million sustainability loan arranged by Deutsche Bank AG and aims to enable long-term financing for critical infrastructure projects across more than a dozen African countries.
The deal represents a pivotal innovation in Africa’s development finance architecture, combining private capital, multilateral credit enhancement, and sustainability-related incentives to accelerate the delivery of essential infrastructure. By partially guaranteeing Mota Engil Africa’s commercial debt, AfDB is using its balance sheet to extend maturities, reduce borrowing costs and de-risk investments in projects that are out of reach through traditional financing channels.
The significance of this deal lies in what it represents: the maturation of Africa’s project finance ecosystem. For decades, EPC companies, even established ones, have struggled to access long-term, competitively priced capital. AfDB’s guarantees effectively bridge that gap by providing peace of mind to lenders like Deutsche Bank, allowing them to expand their exposure to African markets with sound risk management principles. It also shows how multilateral institutions can focus private finance to develop infrastructure in line with the continent’s climate and sustainability goals.
Based on its Sustainability Linked Financing Framework, Mota Engil Africa has committed to measurable environmental, social and governance (ESG) outcomes, including improved occupational safety standards, increased representation of women in management positions, and increased local employment and skills development across its operations. This framework ensures that financial incentives are linked to performance metrics, and that guarantees become not just credit enhancement tools, but also mechanisms for accountability and change.
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AfDB Vice President for Private Sector, Infrastructure and Industrialization Solomon Quayner said the signing was “an important step forward in leveraging guarantees to enable affordable and appropriate commercial financing for Africa’s development.” He highlighted that the deal, in partnership with Deutsche Bank, will help deliver sustainable infrastructure that drives inclusive growth, job creation and climate resilience, priorities that reflect Deutsche Bank’s “High 5” agenda.
This partnership marks a major turning point for Mota Engil Africa. The company, which is active in engineering, transportation, environmental services and energy efficient civil engineering, will have the balance sheet flexibility to deliver a robust project pipeline spanning transportation corridors, water and wastewater systems, renewable energy infrastructure and urban resilience projects. Chairman Manuel Mota said the agreement was a “defining moment” that demonstrated the company’s ability to “deploy bold and innovative financial and operating models that deliver sustainable infrastructure at scale.”
Mariam Khosrowshahi, Managing Director and Head of Sub-Saharan Africa at Deutsche Bank, echoed this sentiment, saying the bank is “proud to support transactions that strengthen critical infrastructure while embedding sustainability key performance indicators at their core.” He emphasized that this approach, which incorporates ESG indicators directly into funding conditions, will “drive tangible results and support lasting progress” across the region.
The impact of this deal extends far beyond Mota Engil Africa itself. This sets a precedent for how African EPCs and construction companies can access large-scale commercial financing backed by multilateral credit guarantees. By proving that sustainability-linked financing can work in high-risk jurisdictions, the agreement could encourage similar arrangements across Africa’s transport, energy and water sectors, where infrastructure is severely lacking. According to AfDB data, Africa’s infrastructure funding gap exceeds $100 billion annually, with climate-resilient and inclusive projects being the most underfunded.
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The agreement also complements the Bank’s 10-year strategy (2023-2033), which aims to accelerate green industrialization, expand the private sector, and build resilient economies. By prioritizing sustainability-related measures, AfDB is not only mobilizing capital but also setting new standards for corporate responsibility and governance in infrastructure development.
This partnership highlights an important evolution in infrastructure financing in Africa, which is no longer just about building physical assets, but about incorporating environmental and social values into the process. Each project funded under the scheme will be benchmarked against global sustainability indicators to ensure that new highways, ports and energy systems also contribute to gender equality, local job creation and emissions reductions.
Financial advisor Sygnum Capital, along with legal advisors Ashurst, Baker McKenzie and Vieira de Almeida, supported the transaction’s structuring and compliance framework, reinforcing the high level of financial and legal rigor expected of sustainability-related transactions.
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In the broader context of African industry and climate change, the partnership between AfDB and Mota Engil reflects a new financing logic. It combines commercial discipline and development objectives, leveraging private markets to achieve the public good. As global financial institutions and institutional investors seek reliable paths to aligning returns with sustainability, the African infrastructure space could emerge as one of the most promising frontiers, as long as such partnerships continue to entrench accountability, transparency, and measurable impact.
