Business Journal

Banking

Africa Finance Corp Secures $150m Loan from German Bank

In a statement published on June 22, Africa Finance Corporation (AFC) announced it has obtained a $150 million loan from the German bank KfW, to finance infrastructure projects in Africa.

The agreement related to the loan, repayable over 15 years, was signed in London by AFC’s CEO, Andrew Alli, and KfW’s infrastructure division’s head, Jan Martin Witte.

“Not only will this loan facility from KfW add valuable capital to our finance reserves but the 15-year tenor period is particularly suited to funding the long-term, large-scale infrastructure projects that are so needed across Africa,”said Andrew Alli, cited in the statement.

AFC is multilateral financial institution established in 2007 with an initial capital of $1.1 billion and whose mission is to mobilise investments for Africa’s infrastructure sector.

Its shareholders are the Central Bank of Nigeria (42.5%), other African commercial banks like Ecobank, United Bank of Africa and First Bank of Nigeria (47.6%) and other investors (9.8%).

Overall, the institution has mobilised $2.5 billion of investment for Africa.

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