Africa Finance Corporation (AFC) and the African Development Bank (www.AfDB.org) have signed a $350 million long-term line of credit to support urgently needed financing for infrastructure projects to underpin sustainable development and economic growth across Africa.

The agreement was signed Monday December 4, on the sidelines of the ongoing COP 28 Summit. The collaboration is a significant milestone in a long-standing relationship, between the two institutions.

The financing agreement will enable AFC to mobilise additional resources towards continued development of infrastructure projects in its focus sectors, including power, transportation, telecommunications, and natural resources. These projects play a pivotal role in closing Africa’s infrastructure deficit and creating new opportunities for economic growth and prosperity on the continent.

Speaking at the signing ceremony, AFC Board Member and Executive Director of Financial Services, Sanjeev Gupta, said: “AFC and AfDB have enjoyed a mutually beneficial partnership for over a decade and this collaboration further drives our shared vision for a prosperous, resilient, and sustainable Africa. Through this long-term funding, we are empowered to effectively mobilise capital for infrastructure projects that will unlock the continent’s economic potential, create jobs, and improve the quality of life for millions of Africans.”

“The Partnership between the African Development Bank and the AFC exemplifies a shared commitment to catalysing sustainable development across the continent. Through this Line of Credit, the two institutions, together, forge a path toward economic empowerment, infrastructure growth and a brighter future of Africa,” said Solomon Quaynor, Vice President for Private Sector, Infrastructure & Industrialization at the African Development Bank.

Combining the strength of their resources and expertise, leading multilateral institutions together can drive rapid industrialisation that generates millions of jobs essential for Africa’s burgeoning youth population, enhances the value of its raw materials, and catalyses overall economic expansion.

The African Development Bank became a shareholder in AFC in 2018, resulting in co-investing in multiple transformational infrastructure projects in Africa for many years. Most recently, both institutions joined the US, EU and governments of Angola, the Democratic Republic of Congo and Zambia in signing a Memorandum of Understanding for development of the Lobito Corridor expansion, with AFC appointed lead project developer.