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.