AFC announces $2 billion facility to aid Africa’s economic recovery

Africa Finance Corporation (AFC) has announced a $2 billion facility to promote recovery and resilience in Africa as a result of the worldwide pandemic and the ongoing Russia-Ukraine conflict.

The funding is to provide African countries with the liquidity and enough hard currency needed to finance trade and other economic activities in their jurisdictions.

The funds will be distributed through AFC loans to commercial banks, regional development banks, and central banks in several African countries.

Applications for the African Economic Resilience Facility will open this month through AFC’s website.

To address Africa’s infrastructure development needs and generate economic sustainable growth, AFC’s approach incorporates specialised sector expertise with a focus on financial and technical advising, project structuring, project development, and risk capital.

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AFC has gained experience mobilizing global funding for important infrastructure projects in Africa over the last 15 years.

The African Finance Corporation (AFC) was founded in 2007 to play a fundamental role in private sector-led infrastructure investment across Africa.

It is Africa’s second-highest-rated multilateral financial institution in terms of investment grade.

A $750 million 7-year Eurobond issued in 2021 at AFC’s lowest yield to date was among the Corporation’s recent bond issuance.

To present, the African Development Bank has invested $10 billion in projects in 35 African countries.

Banji Fehintola, Head of Treasury and Financial Institutions, stated that the corporation is determined to play a leading role in helping African countries to recover from the gaps caused by Covid-19 and the war between Russia and Ukraine.

“We are determined to play a leading role in helping the continent’s recovery and resilience, not only through the work we do in bridging Africa’s infrastructure gap but also through targeted interventions such as this $2billion economic resilience facility,” Fehintola said.