Africa Finance Corporation (AFC) (www.AfricaFC.org), Africa’s leading infrastructure solutions provider, has announced its most impactful year yet with an unprecedented expansion of projects and investments across energy, transport, mining, food, textiles and climate resilience.
AFC supported strong growth in revenues and total assets, successfully navigated the challenges of global geopolitics, inflation and debt crisis in 2023, and delivered critical infrastructure projects across multiple sectors that are central to Africa’s structural transformation and sustainable development.
Groundbreaking initiatives include Djibouti’s first wind farm, with AFC as lead developer on a plan to become the first African country to rely entirely on renewable energy sources, and the Lobito Corridor rail project, linking the Atlantic and Indian Oceans, with AFC once again as lead developer, working with the governments of the United States, the European Union, Angola, the Democratic Republic of Congo and Zambia to mobilize industry. To drive industrialization, value creation and livelihoods, AFC, together with its partner Arise IIP, has expanded Arise Special Economic Zones to 10 countries in West and Central Africa, focusing on key sectors such as food security, textiles and minerals.
“At the heart of AFC’s mission is our commitment to delivering impactful solutions for Africa, and this guides every investment we make,” said Samaira Zubair, AFC’s president and CEO. “AFC’s impact is evident in our solutions-oriented approach and unwavering commitment to delivering transformative projects across Africa. Infrastructure projects such as the Red Sea Power wind farm in Djibouti, the Arise IIP industrial zone and the Lobito transport corridor are reshaping landscapes, fostering sustainable development for communities, and changing the economic trajectory of countries.”
The AFC project, which is the result of strong international collaboration and will begin in 2023, also includes a joint initiative with Excalibur Multiphysics to advance the mapping and responsible use of Africa’s natural mineral resources, enabling greater mineral beneficiation, economic diversification and a transition to clean energy. In the DRC, the company is working through a partnership with Trans Connection Congo to support an overhaul of Kinshasa’s mass transit system to improve mobility and reduce pollution.
The historic commitment of US$253 million from the Green Climate Fund to AFC Capital Partners’ Infrastructure Climate Resilience Fund (ICRF) marks an important step towards the development of sustainable and climate-resilient infrastructure in Africa.
Each initiative blends meaningful development impact and environmental sustainability with strong risk-adjusted returns, leveraging AFC’s unique experience in de-risking project development to focus capital and accelerate completion.
“In a year marked by global economic and geopolitical complexity, AFC has stood as a beacon of resilience, delivering value to all stakeholders while creating jobs and prosperity through structural transformation across Africa,” Zubair said. “Our strong financial results reflect AFC’s unwavering commitment to unlocking practical solutions for projects that enhance regional value capture and accelerate industrialization.”
AFC’s annual profit increased by 15.3% to USD 329.7 million, operating profit increased by 24.2% to USD 497.5 million, and total assets increased by 17.3% to USD 12.34 billion, exceeding the Corporation’s five-year strategic target by USD 2.3 billion.
Further important financial highlights include:
Return on average equity was 11.0% (2022: 12.1%) Net interest income increased by 31.3% to USD 430.5 million (2022: USD 327.9 million) Comprehensive interest Total profit increased by 14.6% to USD 327 million (2022: USD 285.3 million) Equity ratio increased to 34.5% (2022: USD 327.9 million) 34.3%)
AFC’s exit from the Atlantic Terminal Port in Takoradi, Ghana, through its sale to major global port operator Ilport, was a good example of a strategic sale.
The company has expanded its presence with three new member countries: Ethiopia, Burundi, Sao Tome and Principe, bringing the total to 43 countries. It also added six new sovereign shareholders, including Turkish Export-Import Bank, which became the first non-African shareholder. In addition, AFC’s total capital increased by 26.7% to USD 3.42 billion, with equity investments from the governments of Côte d’Ivoire, Benin and Botswana, Cameroon’s National Corporation and Society (CNPS) and SBM Capital Market Securities Limited of Mauritius.
The debt market transaction further expanded AFC’s investor base, with major global financial institutions participating in a record US$625 million syndicated loan supported by 62% oversubscription. The Corporation has also received a USD 350 million loan facility from the African Development Bank and a EUR 50 million loan from Cassa Depositi e Prestiti, demonstrating the Corporation’s ability to attract regional and international organizations.
“As AFC plans to further increase its impact across the continent, we remain deeply grateful for the unwavering support of our stakeholders and the dedication of our team whose passion drives our mission forward,” Zubair said. “With a new strategic agenda that emphasizes balanced portfolio growth, innovative financing and strengthening operational capabilities, AFC is well-positioned to shape a solid future for Africa’s infrastructure and development.”
Distributed by APO Group on behalf of African Finance Corporation (AFC).
Media inquiries:
Yewande Thorpe
communication
African Finance Corporation
Mobile phone: +234 1 279 9654
Email: (email protected)
About AFC:
AFC was established in 2007 with the aim of promoting practical 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.
After 17 years, 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 43 member countries and has invested US$13 billion across Africa since its inception. www.AfricaFC.org
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