Ethiopia’s House of People’s Representatives has approved the country’s accession to the Africa Finance Corporation (AFC).
- •Ethiopia joined the AFC in April 2023 as the institution’s 40th member, but its formal ascension still required ratification of the AFC Establishment Agreement by its parliament.
- •The motion was approved by a majority vote with three abstentions.
- •The country is also member of Afreximbank, the African Development Bank, and other continental multilateral development finance institutions.
After the vote, Ethiopia’s State Minister of Finance Dr. Eyob Telakign said joining the AFC would “help increase the country’s financial capacity and expand options, particularly in alleviating financial challenges observed in mining, industry, and similar investment sectors.”
In 2023, Lagos-based Africa Finance Corporation said it had identified a US$300 million pipeline of projects to capture value from Ethiopia’s metal and mineral exports and bring jobs in catalytic sectors including power, renewable energy, logistics, telecommunications and mining.
AFC’s investor base includes countries, pension funds, insurance firms, institutional investors, and others. In 2024, the institution’s total revenue surpassed US$1 billion for the first time since it was founded in 2007. It attributed its earnings growth to “improved asset yields, prudent cost-of-funds management and sustained traction in advisory mandates.”
