THE CORPORATION
Filling a Critical Void
Even though governance and macroeconomic
conditions have improved across Africa in recent years, the
region’s share of global private infrastructure investment
has remained small.
There is substantial demand for
infrastructure assets throughout the African continent.
Relative to more developed markets, returns on investment in
infrastructure in Africa are actually attractive.
Notwithstanding, there have been few successful
infrastructure projects. One of the reasons for this has
been the lack of project structuring expertise and available
risk capital.
It was to fill this critical void that the
founders of the Africa Finance Corporation (AFC) established
the organization in 2007. The corporation brings a wealth of
such project structuring experience and risk capital to the
market. It is already bridging the infrastructure investment
gap – even amidst tighter credit markets, as discerning
global investors weigh their options and consider “safer”
regions.
Furthering Development Profitably
AFC’s mission is to help address Africa’s
infrastructure development needs while seeking a competitive
return on capital for its shareholders. Since it began
operations in 2007, AFC has created the building blocks with
which to achieve this objective. It has raised US$1.1
billion in fully paid-in equity capital. Its shareholding
base is private sector majority owned (57.5 percent). AFC
is driven by a diverse team of experienced professionals
from investment banking, engineering and other backgrounds.
As Executive Chairman, Mr. Bayo Ogunlesi, an
internationally renowned investment banker, heads a strong
board of directors, for whom good corporate governance is
key. The corporation has a robust and growing pipeline of
projects and transactions. By the end of 2009, AFC had
registered US$200 million in approved transactions across
all sectors and asset classes. The corporation enjoys
established relationships with leading global and
Africa-focused investors.
An International Organisation Established by
Treaty
AFC is an international organization
established by treaty between sovereign states. It was
established by twin legal instruments, with all the rights,
privileges and immunities conferred upon international
entities.
Current member nations are Nigeria (host
country), Guinea-Bissau, Sierra Leone, The Gambia, Liberia
and Guinea. In addition, various prospective new member
countries are now at different stages of due diligence.
Private Sector Majority Owned and Managed
AFC shareholders include the various African
financial institutions (47.6 percent), the Central Bank of
Nigeria (42.5 percent), and several industrial and corporate
shareholders (9.8 percent). The African financial
institutions promote synergy between African banks,
strengthening local support and partnership, and ensuring
proximity to projects and transactions flows.
As a single institution, the Central Bank of
Nigeria provided the anchor capital for the corporation’s
start-up in 2007 and has helped solidify partnership with
AFC’s host government. It holds considerable shareholding in
trust for other African investors.
African industrials and corporations
integrate local corporate experience and strengthen support
from leading local sponsors.
Capitalized with US$1.1 billion, AFC operates
a dollar denominated balance sheet, and essentially provides
financing in this currency.
Organisational Structure
AFC is led by a Chief Executive Officer
appointed and supervised by a Board of Directors, and
supported by a Senior Management team, and several internal
committees. The Board is made up of senior industry
executives and professionals, representing major regional
banks and industrial corporations.
Certain statutory organs ensure effective
governance and prudent management of the corporation.
1. General
Meeting
- A regular meeting of shareholders to oversee major
corporate actions
B Board of Directors
– Group of
eminent industry professionals that has instituted and
delegated certain responsibilities to the following board
committees:
-
Board Nominations and Governance Committee
-
Board Risk and
Investment Committee
-
Board Audit and
Compliance Committee
-
Executive Committee -
The executive Committee is made up of the Group CEO,
executive directors and other senior management staff
-
Management Committees -
Other than the Executive Committee, several management
committees have statutory mandates to support day-to-day
decision making. These are the Assets and Liabilities
Committee and the Risk Management Committee, and the
Investment Committee.
3.
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