The Africa Finance Corporation (AFC) has secured a five-year $100 million loan facility from the Export-Import Bank of India. This funding strengthens AFC's base as it increases investment in critical infrastructure and industrial projects across Africa.
The facility was signed during AFC’s Investor Day in London. It aligns with AFC’s strategy to access alternative liquidity sources beyond traditional capital markets, especially during times of global financial volatility. The funds will be used to support high-impact projects in sectors such as transport, energy, and industrial assets throughout the continent.
AFC stated that the deal extends its funding tenor and enhances its access to cost-efficient capital from export credit institutions. This funding channel is increasingly utilized by development financiers seeking stability amidst shifting investor sentiment.
Banji Fehintola, AFC’s Executive Board Member and Head of Financial Services, commented, “This facility is an important milestone in our long-standing partnership with India Exim Bank and reflects our shared commitment to advancing infrastructure development across Africa.”
This agreement follows a previous $100 million financing deal between AFC and India Exim Bank in 2021, indicating a deepening financial relationship between Africa and India as both regions aim to expand economic cooperation and trade ties.
Analysts suggest the transaction demonstrates AFC’s ongoing ability to diversify its funding mix. This reduces reliance on more expensive Eurobond markets and other conventional sources in a high-interest-rate environment. By securing medium-term financing, AFC is better positioned to execute long-gestation infrastructure projects requiring patient capital.
The deal also reflects a broader trend among African development finance institutions to engage non-Western lenders, particularly from Asia, to address the continent’s infrastructure financing gap, which is estimated to be in the tens of billions of dollars annually.
AFC, which plays a key role in mobilizing capital for African infrastructure, plans to continue pursuing strategic partnerships to unlock new funding pools. The institution has been instrumental in financing projects aimed at boosting regional integration, supporting industrialization, and driving sustainable economic growth.
With this latest facility, AFC further solidifies its position as a crucial intermediary channeling global capital into Africa’s infrastructure pipeline, even as macroeconomic headwinds challenge access to affordable financing.
