The African Finance Corporation (AFC) is a leading multilateral financial institution dedicated to advancing infrastructure development and industrial growth across the African continent. Established in 2007, the AFC is headquartered in Lagos, Nigeria, and operates with the mission of fostering sustainable economic development by addressing the critical infrastructure deficit in Africa.
Mission and objectives
The AFC’s mission is to provide pragmatic solutions to Africa’s infrastructure challenges by mobilizing capital and expertise. Its core objectives include:
1. Financing infrastructure projects:
the AFC focuses on key sectors such as power, transport, heavy industries, telecommunications, and natural resources, providing essential funding and technical support.
2. Catalyzing economic growth:
by investing in high-impact projects, the AFC aims to stimulate economic growth, create jobs, and improve the living standards across African nations.
3. Promoting regional integration:
the corporation seeks to enhance regional trade and cooperation by developing infrastructure that links African economies, thereby facilitating easier and more efficient movement of goods and services.
Key activities and investment areas
- The AFC is involved in various activities, including project development, advisory services, and the provision of debt and equity financing. Its investment portfolio is diversified across several critical sectors:
- Energy: the AFC invests in power generation and distribution projects, including renewable energy initiatives, to ensure reliable and sustainable energy supply.
- Transport: Investments in road, rail, port, and airport infrastructure aim to improve connectivity and logistics within and between African countries.
- Natural resources: the corporation supports projects in mining and oil and gas, ensuring these resources are developed responsibly and contribute to local economies.
- Telecommunications: by funding telecom infrastructure, the AFC enhances digital connectivity and access to information and communication technologies across the continent.
- Industrial projects: the AFC also invests in heavy industries to support the growth of manufacturing and industrial capacities in Africa.
Governance and membership
The AFC operates under a robust governance framework, ensuring transparency and accountability in its operations. It is governed by a Board of Directors composed of representatives from member countries and independent directors with extensive experience in finance and infrastructure development.
Membership in the AFC is open to African countries, regional economic communities, and international financial institutions. As of now, the corporation has 31 member countries and numerous institutional investors, reflecting broad-based support for its mission and activities.
Impact and achievements
Since its inception, the AFC has made significant contributions to Africa’s infrastructure landscape. Key achievements include:
Financing over 100 projects:
the AFC has financed a wide range of infrastructure projects, contributing to enhanced economic growth and development in various African countries.
Mobilizing over $10 billion: through its investments and partnerships, the AFC has successfully mobilized substantial capital for infrastructure projects.
Promoting sustainability: the AFC prioritizes environmentally and socially sustainable projects, aligning with global standards and contributing to the sustainable development goals (SDGs).
