Africa Finance

Africa Finance Corporation (AFC) is a pan-African multilateral development finance institution established in 2007 by sovereign African states to devise and implement practical solutions for the continent's infrastructure deficit. Launched in December 2007 by its founding President and CEO, Austine Ometoruwa, and founding Chairman, Chukwuma Soludo, the institution was capitalized with US$2 billion to catalyze private-sector-led infrastructure investment. The corporation's current President and CEO, Samaila Zubairu, was appointed in July 2018 and has since spearheaded a strategy that has seen total assets grow from US$4.1 billion to US$10.6 billion by 2022. Zubairu, a Fellow of the Institute of Chartered Accountants of Nigeria, brought extensive experience to the role, having previously served as CFO for Dangote Cement Plc and Treasurer for the Dangote Group.

AFC's business model is centered on providing a comprehensive suite of services that span the entire project lifecycle, including principal investing, project development, and financial advisory. The institution makes debt and equity investments in high-quality infrastructure assets across five core sectors: power, natural resources, heavy industry, transport and logistics, and telecommunications. Its client base encompasses both private sector entities seeking reliable partners and African governments aiming to address infrastructure gaps and bolster their economies. Revenue is generated through returns on these investments and fees from its advisory services. The corporation operates with a unique ownership structure, with private investors, predominantly African financial institutions, holding a 62% majority stake, while the Central Bank of Nigeria holds 38%. This structure allows African states to be both members and shareholders.

The institution provides a range of financial products and services, including debt and equity financing, project development support, technical advisory, and risk capital. A significant milestone was its early investment in the US$240 million Main One Cable System, a 7,000 km submarine fiber-optic cable linking West Africa and Europe. More recently, through its establishment of Infinity Power, AFC created Africa's largest renewable energy platform, which is on track to deliver 3 GW of clean electricity by 2030. Another key project is the Red Sea Power initiative in Djibouti, which aims to make it the first African nation powered entirely by renewable energy. By de-risking projects, AFC successfully attracts private capital, and once projects become commercially viable, it often exits, allowing it to redeploy funds into new initiatives. Since its inception, AFC has invested over US$13 billion in projects across 36 countries.

Keywords: infrastructure finance, project development, multilateral financial institution, pan-African investment, private sector investment, debt financing, equity financing, power sector, natural resources, transport and logistics, telecommunications, heavy industry, sustainable development, project finance, financial advisory, African economic growth, blended finance, renewable energy investment, public-private partnerships, asset management