AFC secures $100m loan for African infrastructure

The Africa Finance Corporation (AFC) has secured a five-year $100 million loan facility from the Export-Import Bank of India, strengthening its capacity to fund infrastructure and industrial projects across Africa.

The agreement was signed during AFC’s Investor Day in London and forms part of the corporation’s strategy to diversify its funding sources amid global financial uncertainty.

In a statement on Monday, AFC said the facility would support high-impact projects in key sectors such as transport, energy, and industrial development across the continent.

The institution noted that the deal not only extends its funding tenor but also enhances access to relatively low-cost capital from export credit agencies—an increasingly attractive option for development financiers navigating volatile markets.

Speaking on the development, AFC’s Executive Board Member and Head of Financial Services, Banji Fehintola, described the facility as a significant milestone in the corporation’s partnership with India Exim Bank.

“This facility reflects our shared commitment to advancing infrastructure development across Africa,” he said.

The new loan builds on an earlier $100 million financing agreement between both institutions in 2021, underscoring growing financial ties between Africa and India as both regions deepen economic and trade cooperation.

Analysts say the move highlights AFC’s continued efforts to broaden its funding mix and reduce dependence on traditional sources such as Eurobond markets, which have become more expensive in a high-interest-rate environment.

By securing medium-term financing, the corporation is better positioned to undertake long-term infrastructure projects that require sustained investment.

The development also reflects a broader trend among African development finance institutions to engage non-Western lenders, particularly in Asia, as they seek to bridge the continent’s infrastructure financing gap.

AFC reiterated its commitment to leveraging strategic partnerships to unlock new funding streams, noting its ongoing role in mobilising capital for projects that promote regional integration, industrialisation, and sustainable economic growth across Africa.