Pragmatic continental and industrial development finance institution, the Africa Finance Corporation (AFC), announced on Monday that it had strengthened its well-established relationship with the Export-Import Bank of India (India Exim Bank) with the closing of a new loan facility. This new facility has a total value of $100-million and a term of five years. It followed on from a successful 2021 financing agreement, that also amounted to $100-million. The new agreement was concluded at the AFC Investor Day in London.

“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,” highlighted AFC executive board member and financial services head Banji Fehintola. “Access to diversified and long-term capital is critical to delivering transformative projects on the continent, and AFC remains at the forefront, leveraging strategic collaborations with leading institutions to scale our impact and accelerate Africa’s industrialisation.”

AFC regarded its latest transaction with India Exim Bank as strategically important. It demonstrated that the AFC could access alternative sources of liquidity, outside the traditional capital markets. It also extended its tenor profile (tenor being the remaining term of a financial contract).

“By securing medium-term funding from a key export credit institution such as India Exim [Bank], AFC continues to demonstrate its ability to deploy flexible, cost-efficient capital in support of high-impact projects across the continent,” affirmed the corporation. “As AFC continues to deepen its presence across global funding markets, it remains committed to strengthening partnerships and unlocking innovative sources of capital to advance its mandate. The Corporation plays a catalytic role in mobilising capital for critical infrastructure projects that drive industrialisation, enhance regional integration, and support sustainable economic growth across Africa.”

The AFC was set up in 2007. Since then, it has invested more than $18.5-billion in 36 African countries, and now has 48 member countries.