OPEC Fund supports post-COVID-19 African infrastructure with $ 50 million loan to African Finance Corporation
VIENNA – (BUSINESS WIRE) – The OPEC Fund for International Development (the OPEC Fund) and the African Finance Corporation (AFC) signed a $ 50 million loan agreement to help finance and build the infrastructure necessary for the post-COVID recovery of Africa. This is the first direct financial cooperation between the two institutions.
The proceeds from the 10-year loan to AFC will help close 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 engaged development partners around the world to find ways to act together to mobilize the necessary funds for post-pandemic recovery. ‘Africa and optimize its effective deployment. This loan is part of AFC’s effort to support vital infrastructure for development, from energy to transport and trade, and to put Africa back on the path to sustainable growth and development. We are committed to working with the OPEC Fund and other partners as essential catalysts for the development of critical infrastructure. ”
OPEC Fund Director General Dr Abdulhamid Alkhalifa said: “The urgent infrastructure financing needs in Africa 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 job creation. 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 of 28 member countries, established to provide private sector-focused and financing solutions for infrastructure, natural resources and industrial projects across Africa. To date, AFC has invested more than US $ 8.4 billion in projects in 35 African countries. The OPEC Fund signed a cooperation agreement with the AFC in 2017 and this loan marks the start of collaboration in the field.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides funding from member countries to non-member countries. The organization works in cooperation with developing country partners and the international development community to drive economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established by OPEC member countries in 1976 with a distinct mandate: to stimulate development, strengthen communities and empower people. Our work is people-centered and focuses on financing projects that meet basic needs, such as food, energy, infrastructure, employment (especially for MSMEs), clean water and sanitation, health care 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 investments across Africa. It is the second highest rated multilateral financial institution in Africa. AFC’s approach combines specialized industry expertise with a focus on financial and technical advice, project structuring, project development and venture capital to meet the infrastructure development needs of the Africa and stimulate sustainable economic growth. AFC invests in high quality infrastructure assets that provide essential services in the basic infrastructure sectors of energy, natural resources, heavy industry, transport and telecommunications. To date, the Company has invested over US $ 8.4 billion in projects in 35 African countries. www.africafc.org