Infrastructure solutions provider, Africa Finance Corporation (AFC), announced it had received an equity investment of an undisclosed from Turk Eximbank on December 29th. Turk Eximbank made the investment on behalf of the Republic of Türkiye.
“Through this partnership, we aim to continue building the infrastructure that will foster industrialization, value capture and retention in Africa as well as create quality jobs,” the AFC said in a statement announcing the deal.
- Trade between Türkiye and Africa has increased to US$40.7 billion in 2022 from US$5.4 billion in 2003.
- Turk Eximbank’s investment in AFC is its first in an African entity.
- It now becomes the AFC’s first non-African sovereign shareholder.
“This investment not only validates our efforts in addressing Africa’s infrastructure challenges but also underscores Türkiye’s commitment to fostering south-south cooperation,” Samaila Zubairu, President & CEO of AFC said.
The investment extends AFC’s already existing strong partnerships in Türkiye with leading engineering, procurement, and construction (EPC) firms for the financing and development of transformational infrastructure projects in Africa.
- These include the 300 MW Combined Cycle Gas (CCG) plant in Senegal, developed by Calik Enerji, and the development and construction of an 80MW peat-fired Independent Power Project (IPP) in Rwanda by Hakan Madencilik A.S.
- Most recently, AFC exited its 35% equity stake in Ghana’s Takoradi port to Türkiye’s Yilport Holdings, one of the world’s leading port operators.
- The Corporation is in ongoing discussions with the Foreign Economic Relations Board of Türkiye (DEİK) and the Turkish Contractors Association.
“This noteworthy investment exemplifies our dedication to facilitating substantial collaborations that will provide crucial support to Turkish exporters and construction companies, thus catalysing sustainable economic growth and development within both regions, a collaboration that signifies a profound commitment to fostering synergies between Türkiye and Africa,” Ali Güney, CEO of Turk Eximbank said while announcing the deal.
AFC is an A3 (Moody’s) rated investment-grade institution that has raised funds across a diverse range of markets, including in the US, UK, UAE, Europe, Japan and South Korea.
- It has also received equity investments from major African sovereigns and pension funds, and enjoys the support of global multilaterals, commercial banks and other financial institutions,
- It recently received funding support from the US Development Finance Corporation (DFC), Germany’s DEG, France’s Proparco, the Netherland’s FMO, China Exim Bank, India Exim Bank, and the major international and African commercial banks.
- It has a strong credit profile because of its “ability to deliver de-risked, transformational infrastructure projects that propel Africa to its rightful place on the global stage.”
