AFRICA FINANCE CORPORATION ATTRACTS NEW EQUITY FROM GHANA, SIERRA LEONE AND SEYCHELLES
Lagos, 28 April 2022: Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, announces a boost to its shareholder capital after receiving US$35.5 million in equity investments from the Seychelles Pension Fund (SPF), the Government of Sierra Leone and the Ghana Infrastructure Investment Fund (GIIF). The three investments bring the Corporation’s shareholders’ funds to US$2.3 billion, as of the end of March.
In alignment with the Corporation’s strategic goal of diversifying its shareholder base, the equity investment by the Seychelles Pension Fund represents a milestone achievement as the first shareholder onboarded from the Indian Ocean states.
“Becoming a shareholder in AFC is a first step in building a partnership with the Corporation,” said Ms. Nisreen Abdul Majid, Chief Executive Officer of the Seychelles Pension Fund. “We are keen to work with AFC as a privileged partner in co-developing and co-investing in some of the transformative infrastructure projects planned in Seychelles.”
As one of the founding members of AFC, Sierra Leone’s investment reinforces its bilateral relationship with the Corporation by becoming the fifth West African country to join as a shareholder.
Hon. Dr. Dennis Vandi, Minister of Finance in Sierra Leone, stated: “As an early supporter of the AFC, this investment demonstrates our trust and confidence in the Corporation as a reliable development partner in delivering on transformative infrastructure and industrial projects for Sierra Leone.”
Long-standing shareholder and partner, the Ghana Infrastructure Investment Fund, made an upsize of its equity in AFC. The GIIF is an investment vehicle established by the Government of Ghana with a US$325 million anchor equity stake to act as a catalyst to leverage private sector funds into infrastructure assets in the country. The GIIF made an initial US$10 million equity investment in 2019 and has now added a further US$20 million
“Ghana is one of the earliest members and shareholders of AFC and this upsize speaks to the value we place on our partnership with AFC,” said Solomon Asamoah, the Chief Executive Officer of GIIF. “AFC is so much more than its balance sheet. It has the knowledge and technical expertise required to deliver good infrastructure within the African context - properly structured investments with good returns and that attract international financing of the highest standards in projects that are good for the country. For our part at the GIIF, we are always looking for investment partners with knowledge and expertise, and this is where AFC comes in. As we develop and convert our pipeline in tolls, ports and energy, I can’t think of a better partner than AFC.”
Samalia Zubairu, President & CEO of AFC, said: “We are thrilled with this boost to our shareholder capital. The equity investment by the Seychelles Pension Fund allows AFC to participate strategically in infrastructure development with a partner that understands the needs of the country. It also corroborates AFC’s efforts to plug in African Pension Funds in taking a leading role in bridging the continent’s infrastructure deficit.
“Sierra Leone joining as a shareholder represents a significant vote of confidence from a long-standing partner and we look forward to continued collaboration in unleashing the growth potential of the country.
“The equity upsize by GIIF solidifies the government of Ghana’s recognition of AFC as a pan-African institution that continues to work relentlessly to support its member states in coping with the aftermath of the pandemic on the countries’ economies, especially in terms of supporting their efforts in managing liquidity and foreign reserves.” Ends
Notes to Editors
AFC was established in 2007 to be the catalyst for private sector-led infrastructure investment across Africa. It is the second highest investment grade rated multilateral financial institution in Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth. AFC invests in high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. To date, AFC has invested US$10 billion in projects in 35 countries across Africa. www.africafc.org
Senior Vice President, Communications
Africa Finance Corporation
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