Press Release: OPEC Fund Supports Post-COVID-19 African Infrastructure With $50 Million Loan to Africa Finance Corporation
The OPEC Fund for International Development (the OPEC Fund) and Africa Finance Corporation (AFC) have signed a $50 million loan agreement to help finance and build infrastructure needed for Africa’s post-COVID recovery. This represents the first direct financing co-operation between the two institutions.
The proceeds of the 10-year loan to AFC will help address the continent’s well-known infrastructure financing gap. The loan will also support increased financial flows to Africa and contribute to COVID-19 recovery efforts in African economies by freeing up government funds to meet urgent financing needs related to the pandemic.
AFC President and CEO, Samaila Zubairu said: “AFC has been engaging development partners worldwide to find ways that we can act in concert to mobilize the funds necessary for Africa’s post-pandemic recovery and optimize efficient deployment. This loan is in line with AFC’s effort to support the development-vital infrastructure, from energy to transport and commerce, and to return Africa back to the path of sustainable growth and development. We are committed to working with the OPEC Fund and other partners as critical enablers of essential infrastructure development.”
OPEC Fund Director-General Dr. Abdulhamid Alkhalifa said: “Africa’s urgent infrastructure financing needs have become even more pronounced since the onset of COVID-19. The pandemic has hampered economic growth and investment across the continent. Our support to AFC will help provide sustainable financing for infrastructure development to improve connectivity, transport, logistics, trade and the creation of jobs. We look forward to a long and productive partnership with AFC. By working with experienced regional partners, our development impact is amplified.”
AFC is a financial institution with 28 member countries, established to provide financing and private sector-driven solutions for infrastructure, natural resources and industrial projects across Africa. To date, AFC has invested over US$8.4 billion in projects within 35 African countries. The OPEC Fund signed a cooperation agreement with AFC in 2017 and this loan marks the beginning of collaboration on the ground.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established by the member countries of OPEC in 1976 with a distinct mandate: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, we have approved more than US$25 billion for operations in 135 partner countries. Our vision is a world where sustainable development is a reality for all.
About Africa Finance Corporation
AFC was established in 2007 to be the catalyst for private sector-led infrastructure investment across Africa. It is the second highest investment grade rated multilateral financial institution in Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth. AFC invests in high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. To date, the Corporation has invested over US$8.4 billion in projects in 35 countries across Africa. www.africafc.org
Photo courtesy of United Nations COVID-19 Response.