African Finance Corporation (AFC) (www.AfricaFC.org), the continent’s largest infrastructure solutions provider, and Italian development finance institution Cassa Depositi e Prestiti SpA (CDP) (www.CDP.it) have signed a EUR 50 million financing facility agreement in conjunction with COP28 in Dubai. This financing will play a key role in supporting AFC’s investments in renewable power, energy-efficient projects and climate-resilient infrastructure.
The 10-year scheme will enable AFC to accelerate efforts to address Africa’s infrastructure deficit, while funding projects that contribute to mitigating climate change, reducing greenhouse gas emissions and promoting sustainable development. This marks a further step in the strategic relationship between AFC and CDP, with AFC already receiving approximately US$150 million in bilateral financing.
The signing of the agreement at COP28 underlines that the AFC and CDP are aligned with international efforts to combat climate change and achieve the Sustainable Development Goals. This will combine AFC’s expertise in infrastructure development and deep knowledge of Africa with CDP’s experience in financing sustainable projects, creating the foundation for innovative financing solutions that leverage the strengths of both institutions. The partnership will accelerate the development of infrastructure projects that address Africa’s climate-related challenges, contribute to job creation and improve the livelihoods of local communities.
Commenting on the agreement, Sanjeev Gupta, Board Member and Executive Director, Financial Services, said: “Global capital needs to understand local realities to function effectively in developing markets, in order to manage risk to achieve desired returns and impact. Continued cooperation underpins the essential strategic collaboration between African and European institutions to ensure that the global challenges of economic development, climate justice and prosperity for all are met equitably. We look forward to leveraging this financing to strengthen investment in resilient infrastructure.” Contribute to rapid industrialization, economic development and sustainability on the African continent. ”
“Through this collaboration with AFC, we will be able to finance high-impact projects in the field of green infrastructure, which is a key element contributing to Africa’s efforts to tackle climate change,” said Paolo Lombardo, CDP’s Head of Development and International Cooperation. “As we have made clear here at COP, sustainability, climate mitigation and adaptation are global challenges that require collective efforts. That is why we are pleased to expand our partnership with AFC, which has proven to be a great catalyst for innovative projects.”
AFC is proving that the opportunity for Africa to accelerate its development impact and deliver benefits is possible. One example is the Red Sea Power wind farm, Djibouti’s first independent power project, which was recently inaugurated by the country’s president. Funded by AFC and a consortium of international investors, the project will provide 60MW of clean energy, increasing Djibouti’s overall power generation capacity by 50% and avoiding 252,500 tonnes of CO2 emissions per year, the equivalent of pollution from more than 55,000 buses.
AFC raises capital from a diverse range of international investors and lenders, leverages A3 investment grade credit (Moody’s), and works extensively with institutions and capital markets around the world. Current funders include German Development Bank KfW, Development Finance Corporation (DFC), DEG, FMO and Proparco. This international support demonstrates the confidence of global investors in AFC’s strong credit profile and ability to deliver risk-free, innovative infrastructure projects that elevate Africa to its rightful place on the world stage.
Distributed by APO Group on behalf of African Finance Corporation (AFC).
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About AFC:
AFC was established in 2007 to foster private sector-led infrastructure investment across Africa. AFC’s approach combines industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.
In the 16 years since, AFC has established itself as Africa’s partner of choice for investing in and delivering high-quality infrastructure assets that provide essential services to core infrastructure sectors such as power, natural resources, heavy industry, transportation and telecommunications. The AFC has 42 member countries and has invested US$12.7 billion across Africa since its inception.
www.AfricaFC.org
About CDP:
CDP (www.CDP.it) is the Italian National Promotion Agency and the financial institution for international development cooperation entrusted by the Italian State to promote the sustainable development of Italy and developing countries and emerging markets. CDP supports economic growth, social inclusion and environmental transition by investing in innovation, business competitiveness, infrastructure and regional development, allowing the activation of investments worth a total of EUR 30.6 billion (1.7% of Italian GDP) in 2022, 70% of which will be dedicated to sustainable projects, also thanks to the attraction of resources from third-party investors and co-investors. According to the strategic plan for 2022-2024, a total of 128 billion euros of investment is expected to be mobilized during 2024.
