Lagos, 3 December 2020 – Africa Finance Corporation (“AFC” or “the Corporation”), the leading infrastructure solutions provider in Africa, today announces it has signed a Memorandum of Understanding with its equity shareholder, the Arab Bank for Economic Development in Africa (“BADEA”) to deepen their co-operation in the sustainable and inclusive development of Africa.
BADEA is an independent international financial institution that promotes economic and social development and fosters cooperation between Arab States and African Countries. It is the first Arab institution to invest in AFC, having become a shareholder in the first quarter of 2020 with an investment of US$10 million.
AFC and BADEA are committed to co-develop and co-finance projects in the energy, transport, natural resources, heavy industries, and telecoms sectors as well as the realignment of Africa’s trading position. BADEA further commits to support strengthening AFC’s presence in North Africa by leveraging BADEA’s institutional linkages in the sub-region as well as with investors in the Middle East.
Samaila Zubairu, President & CEO of AFC, commented: “AFC and BADEA both seek to foster economic and social development in Africa through the development and financing of infrastructure and industrial projects as well as strengthening trade in Africa. BADEA’s shareholding in AFC is a natural fit and, building on this relationship, we will maximise our synergies as they relate to infrastructure, trade finance and future investments into the Corporation.
“Investors and other stakeholders from the Arab world are particularly attuned to the fact that inclusive growth stems from investment, not aid, which is why they play an important role in supporting projects that have a high developmental impact and deliver steady returns. We are very pleased to have BADEA as an equity shareholder and look forward to expanding our coalition of international investors from this region of the world.”
Dr. Sidi Ould Tah, Director General of BADEA, also commented on the announcement: “BADEA’s investment in AFC, which is an institution with an excellent and proven track record in delivering on transformative infrastructure projects with sustainable impact, bodes well for us at the time when we are implementing BADEA 2030, our new strategic framework”.
“BADEA has a long track record of over the last 45 years in financing the public sector where infrastructure dominates its portfolio. With BADEA 2030, we have substantially expanded our portfolio to private sector and trade financing, SMEs, and Agricultural Value-Chains. Our partnership with AFC comes at this favourable time to exploit synergies between both institutions in co-financing opportunities in both public and private sectors to deliver on our respective missions with an ending goal of promoting sustainable economic and social development in Africa while fostering Arab-Africa cooperation.”
About BADEA – www.badea.org
BADEA, the Arab Bank for Economic Development in Africa is an independent international financial institution owned by eighteen (18) Arab countries. BADEA aims at strengthening economic, financial and technical cooperation between Arab and African countries and the embodiment of Arab-African solidarity based on equality and friendship. To achieve these objectives, BADEA was mandated to:
- Contribute to financing the economic development of African countries.
- Foster cooperation between the Arab World and African trough investment and trade
- Contribute to the provision of necessary technical assistance for development in Africa.