Post Views: 83 The African Development Bank Group, on Wednesday, became the second and Africa’s highest investment-grade rated (AAA) Supranational Fin...
The African Development Bank Group, on Wednesday, became the second and Africa’s highest investment-grade rated (AAA) Supranational Finance Institution to join the membership of and invest in the Africa Finance Corporation (AFC), a leading infrastructure solutions provider on the continent.
This followed its investment of $50m in the equity of AFC, to enable both institutions to accelerate infrastructure development and delivery on the continent by deepening co-financing opportunities. It will also enhance joint implementation of projects, knowledge transfer and capacity development for the benefit of Africa.
The addition of AfDB as a shareholder and Development Finance Institution member of AFC, according to a statement, complements the corporation’s strategy of addressing Africa’s infrastructure deficit with AfDB’s stated mission to help reduce poverty, improve living conditions for Africans and mobilize resources for the continent’s economic and social development.
The equity investment in AFC further broadens AFC’s shareholder base and follows recent equity investments in AFC from African Re-Insurance Corporation and the Republic of Ghana.
Also, as part of the equity investment, AfDB will have representation on the AFC Board of Directors.
Samaila Zubairu, President and Chief Executive of AFC, while welcoming AfDB as a shareholder and strategic partner, with whom the corporation will collaborate in its “journey to address Africa’s infrastructure deficit and challenging business environment.”
AFC’s mandate, he continued, “is a strategic fit for AfDB’s objective to integrate, energize and industrialise Africa.”
Also commenting, Dr. Akinwumi Adesina, President of AfDB, said the bank “shares AFC’s vision of developing Africa-led responses to the continent’s socio-economic development. To date, we have already worked jointly to deliver transformational projects with tangible impact over the years.
“In becoming a shareholder, this development is, therefore, a natural evolution in our partnership, which in turn will result in delivering solutions to Africa’s infrastructure challenges at a faster pace. These solutions will adopt the highest standards, generate value to stakeholders, and foster sustainable development and economic growth across the African continent.