Africa Finance Corporation (AFC) has raised $2 billion through a syndicated loan, drawing strong support from Asian and European banks eager to tap into Africa’s growing infrastructure market and the investment opportunities it presents.
- +African financier AFC raises $2bn as Asian banks double down on Africa bet
The funding round underscores rising international confidence in the continent’s infrastructure sector as African countries accelerate efforts to expand rail networks, ports, power projects and refining capacity to support economic growth and industrial development.
The funding round underscores rising international confidence in the continent’s infrastructure sector as African countries accelerate efforts to expand rail networks, ports, power projects and refining capacity to support economic growth and industrial development.
According to AFC, lenders from Asia and Europe each accounted for roughly 35 percent of participating creditors, highlighting the increasingly global appeal of African infrastructure financing.
Samaila Zubairu, the corporation’s chief executive officer, said the transaction reflected growing interest from Asian financial institutions, particularly as AFC continues to build a robust pipeline of projects across the continent.
“We typically have a diverse funding base,” Zubairu said in an interview. “But in this round we saw a lot more Asian banks. We have banks from China, Hong Kong and Korea. They’re a lot more engaged.”
The fresh capital comes as AFC explores new investment opportunities, including discussions around a proposed oil refinery planned by billionaire Aliko Dangote in East Africa. The project forms part of broader efforts to strengthen the continent’s refining capacity and reduce dependence on imported petroleum products.
African governments have increasingly prioritised infrastructure development to unlock the value of the continent’s vast natural resources and improve regional trade connectivity. While infrastructure projects often require substantial capital and lengthy construction timelines, they continue to attract investors seeking higher returns.
A joint report by the Organisation for Economic Cooperation and Development and the African Union estimates that returns on infrastructure investments in Africa can reach as high as 20 percent, making the sector one of the most attractive long term investment opportunities globally.
The syndication was led by Barclays, Commerzbank, First Abu Dhabi Bank and FirstRand. Participating Asian lenders included Export Import Bank of India, Bank of Communications, Industrial and Commercial Bank of China and Industrial Bank of Korea, among others.
The successful fundraising also reflects confidence in AFC’s financial standing. The institution holds a long term A credit rating from S&P Global Ratings, which maintains a positive outlook on the corporation.
As demand for infrastructure financing continues to grow across Africa, the latest deal positions AFC with additional firepower to support major projects while deepening financial ties between the continent and investors in Asia, Europe and the Middle East.
