Infrastructure and industrial development institution Africa Finance Corporation (AFC) has obtained a $75-million loan facility from the Arab Bank for Economic Development in Africa (BADEA). The term of the facility has not yet been made clear. The agreement was signed in Johannesburg, at the B20 Summit, which was held in parallel with the G20 Summit.

The AFC and BADEA were already strategic partners. The latter became a shareholder in the AFC in 2020 and the two institutions have a cooperation framework agreement, signed in that same year.

“As a shareholder of AFC, BADEA has been a valued partner in advancing our mandate,” highlighted AFC president and CEO Samaila Zubairu. “By deploying capital into sustainable, high-impact infrastructure, we continue to create pathways for inclusive economic growth across the continent.”

The loan will be used to finance and develop essential infrastructure and industrial projects in the power, transport, logistics, telecommunications and digital infrastructure and heavy industrial sectors. By means of its proven project development, structuring and implementation expertise, the AFC will direct the finance into high-impact projects, to stimulate economic transformation.

“BADEA and AFC have been strategic partners in advancing Africa’s development agenda, with a remarkable track record of syndicated transformative projects with medium to long-term financial instruments including equity participation,” pointed out BADEA president Abdullah Almusaibeeh. “[The] signing of this $75-million line of credit speaks volumes about BADEA’s agility to respond to development needs with a variety of instruments of different maturities.”

The new loan facility also supported the AFC’s wider strategy of diversifying its funding base and mobilising long-term capital to finance African development. “By strengthening collaboration with shareholder institutions such as BADEA, AFC continues to expand its capacity to finance resilient infrastructure and advance sustainable economic development across the continent,” explained the corporation.

The AFC was founded in 2007 and now had 47 member countries. It has invested more than $17-billion since it was created.