Fostering private-sector solutions to Africa’s development

The AFC is at the forefront of fast tracking Africa’s economic development through private sector business leadership.

Private sector development is critical for poverty reduction in Africa, but a buoyant and growing African private sector has been an important missing ingredient in past development efforts. Today, the changing landscape in Africa suggests that the continent is now ready for the private sector to play a more active role in driving economic development. Private entrepreneurs are the engines of productivity growth, creating productive jobs and higher incomes.

AFC’s strategy is based on developing Africa’s vibrant private sector potential as a key condition for improved sustained economic growth and poverty reduction. AFC uses its thought leadership to provide policy and business advisory services to support private sector development in Africa. In addition to providing appropriate financing for African businesses, AFC also facilitates advisory and capacity building support to its investee companies, thereby providing the kind of holistic support African businesses need to compete in today’s global environment.

AFC is focused on core sectors that combine attractive investment opportunities with significant developmental impact by focusing on sectors that create profitability, generate employment, contribute to skill acquisition and ultimately drive the economic multiplier effect. AFC will maximize both the returns for its investors and the positive impact on the African societies where these projects are based

AFC’s target sectors are:

• Power
• Transport Infrastructure
• Heavy Industries
• Oil and Gas
• Mining
• Telecoms

AFC is focused primarily on project finance and plays an active role across the full value chain including origination, structuring, syndicating and managing. It invests in private equity in development projects. It seeds projects with its own equity and collaborates with other private equity funds. AFC will work to satisfy Africa’s need for a long-term debt market by placement of its funds, syndication with other banks, as well as bond placements and market making. It will also build additional services around its core project finance focus to include structured finance, investment banking and asset management.