• Wednesday, May 22, 2024
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Africa Finance Corporation’s assets rise 17% in 2023

Africa Finance Corporation’s assets rise 17% in 2023

The total assets of Africa Finance Corporation (AFC), a multilateral finance institution, rose by 17.3 percent to $12.34 billion last year.

AFC’s net profit also increased by 15.3 percent to $329.7 million from $285.9 million. Its return on equity for 2023 stood at 11 percent, according to the corporation’s latest financial report.

“During the year, AFC increased profits by 15.3 percent to $329.7 million and total assets by 17.3 percent to $12.3 billion, surpassing the target set out in its five-year strategy by $2.3 billion,” Emeka Emuwa, chairman of AFC said in a statement.

He said the operating income was $497.5 million and shareholders’ total equity ended the year at $3.4 billion, reflecting increases of 24.2 percent and 26.7 percent, respectively.

“This robust performance further solidifies AFC’s position as Africa’s leading provider of pragmatic infrastructure investment solutions,” he added.

According to Emuwa, AFC’s most successful year for capital raising was 2023, as six new shareholders joined and 11 existing shareholders increased their equity contributions, resulting in a total equity injection of over $500 million.

“Thanks to the AFC’s strong performance in 2023, I’m delighted to announce to shareholders that the board of directors is proposing a dividend payout of 5.3158 US cents per share from 6.6315 US cents per share in 2022, amounting to approximately $81.74 million from $85.58 million in 2022,” he said.

AFC was created through collaboration between sovereign African states and the African private sector to provide pragmatic solutions to the continent’s infrastructure deficit and challenging operating environment.

The institution announced the closure of a record-breaking syndicated $1.16 billion, sourced from a variety of banks across Asia, the Middle East, and Europe.