From the CEO

“The last decade has been a tale of mixed fortunes for Africa. When the AFC was founded in 2007, the Continent was enjoying unprecedented growth. Between 2000 and 2010, GDP growth in Africa averaged 5.4%, or US$78 billion, way above the global mean rate.

As we celebrate ten years of operations, the story is different. African growth has declined to 1.6 percent and there is volatility in government revenues, which in turn affects spending. Our economies remain vulnerable to wider global economic pressures and there is still too much dependence on the commodities export market, meaning that some countries have been hit particularly hard in recent years.

However, in the long term, Africa is booming, both in terms of its population and its economic potential. And to support its growth and development, its woefully inadequate infrastructure needs to be drastically improved. The exact figure is much debated, but the World Bank estimates the deficit to be approximately US$100 billion every year for the next decade, with spending needed for new investments as well as the operation and maintenance of what is already there.

The infrastructure investment gap, and its negative impact on the growth and social development of African economies is clear to see, and bridging this gap is what we at the AFC set out to do. Despite challenging global economic headwinds, the infrastructure investment landscape in Africa is full of promise and another ten years from now, AFC will still be leading the charge.”
 
The Mission
AFC’s core mission is to address Africa’s infrastructure development needs while seeking a competitive return on capital for our shareholders.

Currently, lack of access to reliable power, poor transport networks and weak telecommunications infrastructure is limiting economic growth and restraining sector development across the continent, preventing millions of Africans from fulfilling their true potential. By providing project development expertise and risk capital, AFC is helping to fill Africa’s critical infrastructure void and ensuring that the positive economic growth momentum the region is currently experiencing is maintained and accelerated.
The Business Model
AFC offers a unique value proposition as an Africa-focused multilateral financial institution covering three complementary service areas: project development, financial advisory and principal investing. In addition to these core services AFC has significant experience and expertise in project management and will ensure that the objectives of all parties involved are met through careful monitoring of the project from beginning to end.

We therefore fill key market gaps by participating across the entire project cycle and capital structure, ensuring that projects are well structured and transactions reach financial close.
The Strategy
Through our hybrid structure of a multilateral institution with substantial private sector participation, AFC acts as both a leading financier and adviser to its clients. It offers project, trade finance and structured debt, greenfield equity, and buy-out capital as well as fixed income products. We complement these product offerings with advisory capabilities in areas such as: project development, project management, capital raisings and restructurings.
The Impact
Since its inception, AFC has committed US$3.0bn to funding large-scale infrastructure projects. US$2.6bn of this capital has been disbursed so far.

AFC is committed to investing in projects that will provide substantial, measurable benefit to a region or sector in the long term and will be templates for future infrastructure investment and development. However the corporation also considers the short term social and economic impact. Where possible, the projects utilize local resources and suppliers and jobs are created during both construction and operational phases.



 

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