Continental infrastructure solutions provider Africa Finance Corporation (AFC) has secured a EUR 250 million 10-year term loan from Cassa Depositi e Prestiti (CDP), the Italian Financial Institution for Development Cooperation.
- •The facility is backed by a guarantee from SACE, the Italian insurance and financial group fully owned by the Italian Ministry of Economy and Finance, covering up to 80% of the facility amount.
- •The facility is structured to cultivate Italian supply chain opportunities in infrastructure and renewable energy generation.
- •This will include the supply of components for the Lobito Railway Corridor – a commercial railway line that will run through Angola and extend to the borders of Zambia and the Democratic Republic of Congo.
“We are convinced that investing in strategic projects not only creates new opportunities for our companies but also helps to build lasting and shared ties capable of fostering growth and well-being for local communities,” said Dario Scannapieco, Chief Executive Officer of CDP.
Last September, the Africa Finance Corporation signed a concession agreement with Angola and Zambia that will see the infrastructure solutions provider lead the construction of 800km of railway line connecting the Zambia Railways Line from Chingola to the Benguela Line in Luacano, Angola.
The strategic project is widely seen as a snapshot of the global competition between the West and China for the DRC’s vast mineral wealth. While the West is investing in the corridor, Beijing is making a play to revamp the Tanzania-Zambia (Tazara) railway line).
“Our partnership with CDP, further strengthened by SACE’s guarantee, exemplifies the power of blended finance in unlocking capital for infrastructure development in Africa,” Banji Fehintola, Executive Board Member and Head, Financial Services, AFC, said in a statement announcing the institution’s deal with the Italian development arm.
The Italian government-owned SACE, which is present in 13 countries globally, supports the growth of over 60, 000 companies in Italy and globally, providing insured operations and guaranteed investments totalling EUR 267 billion.
