What is AFC and what does it do?

AFC is an African-led investment grade rated multilateral development finance institution, established in 2007, whose mission is to improve African economies by proactively developing and financing infrastructure, industrial and financial assets. AFC is involved as an investor, developer and financier of various infrastructure projects, and is gaining recognition as the benchmark institution for financing the development of infrastructure projects in Africa.

What is AFC’s business model?

AFC offers a unique value proposition as an Africa-focused multilateral finance institution covering three complementary service areas: project development, financial advisory and principal investing. AFC fills key market gaps by participating across the project cycle and capital structure, ensuring that projects are well structured and transactions reach financial close.

What is AFC’s strategy?

Through its unique hybrid structure of a multilateral institution with substantial private sector participation, the 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. It complements these products offerings with advisory capabilities in areas such as: project development, capital raisings and restructurings.

How has AFC evolved since its conception?

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AFC’s vision is to: “Be the leading African institution in infrastructure financing on the continent” – who is currently the leading institution, if not AFC?

AFC is quickly becoming recognized as the leading private-sector led African infrastructure financier operating on the continent. However, there are several other organisations and institutions involved at various levels of infrastructure financing (both public and private) in Africa, often in partnership with AFC. 

What sort of projects do you seek to help, and of what magnitude?

At AFC our mission is to help address Africa’s infrastructure development needs, while seeking a competitive return on capital for our shareholders. We therefore prioritise our sectors to those which simultaneously offer a significant development impact and a high profit potential. We originate and execute transactions in the power, transportation infrastructure, heavy industries, natural resources and telecommunications sectors.

What is AFC’s headcount? and where are personnel located?

AFC has 85 professional staff based at our Headquarters, in Lagos, Lagos Nigeria. Our staff, though based in Lagos, operate across the continent advising on large scale infrastructure projects. 

Who does AFC compete with in this space?

Given the scale of the Africa infrastructure investment requirement, AFC works in partnership and collaboration with various developers, financiers and banks in the infrastructure space, including: long-standing DFIs like African Development Bank (AfDB), International Finance Corporation (IFC) and Africa Export Import (Afrexim) Bank, Regional and European Development Finance Institutions, Private Equity Funds, local and international commercial banks, international Export Credit Agencies, and global investment banks.

How does AFC select its partners?

Among other criteria, AFC focuses on working with partners with strong operational capacity, a demonstrable commitment to African development, clear track record and history, and a compelling value add.

Who owns AFC?

AFC is private sector majority owned and managed, Institutional shareholders include:

•    47.7% African Financial Institutions
•    42.5% Central Bank of Nigeria
•    9.8% industrials 

 

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