AFC Secures $100M Loan for African Infrastructure Projects

The Africa Finance Corporation (AFC) has secured a $100 million loan from the Export-Import Bank of India, aimed at strengthening its funding base for infrastructure projects across Africa. This five-year loan facility is part of AFC's strategy to tap alternative liquid sources beyond traditional capital markets, especially in the current volatile financial environment.

The funds will support high-impact projects in sectors such as transport, energy, and industry. Banji Fehintola, an executive board member and head of financial services at AFC, noted that this agreement builds on a previous $100 million financing secured in 2021, highlighting the deepening financial relationship between Africa and India.

The AFC aims to reduce reliance on the Eurobond market and engage with non-Western lenders, particularly from Asia, to bridge Africa's estimated $10 billion annual infrastructure financing gap. This loan further cements AFC's role as a key intermediary in channeling global capital into Africa's infrastructure pipeline.