Our approach to impact

Facilitating instrumental infrastructure for transformative impact across Africa
Truly pan-African, we work to accelerate impact and turn investments into prosperity by constructing a leading-class portfolio of high-yield assets, often taking an early equity financier role. Today, 33 member countries tap into our investment expertise. To date, we have invested US$10billion in 35 countries across Africa in key sectors including Power, Transport, Heavy Industries, Telecommunications and Natural Resources.
Our purpose-driven approach empowers us to deliver accelerated developmental impact and guides us as we continue to build on our key strengths:

Innovative

Applying our holistic approach to develop projects from conception to close

Collaborative

Working closely with project sponsors to intervene early, serve as an incubator for projects, and ensure that projects are bankable

Entrepreneurial

Combining a commercially-focused approach with development impact, local knowledge, global expertise and understanding of our markets

Exponential

Engaging with an ecosystem investment philosophy where we seek to invest in every step of the value chain of a project

AFC Sustainability Strategy

AFC drives the provision of innovative home-grown solutions to Africa’s development and climate change challenges as it relates to infrastructure – our core focus and area of expertise – an approach premised on our sustainability strategy:

  • Sustainable investing in delivering impactful solutions for Africa, whilst continuously adapting our investment impact considerations
  • Mainstreaming climate finance thinking in all our activities through a dedicated cross-divisional team
  • Environmental and social governance in the contex of investment and risk management
  • Driving thought leadership and conducting research
  • Strengthening strategic partnerships to provide continued access to competitive financing solutions

The strategy comprises the following key tenets:

  • Development Impact Reporting
  • Climate Finance & Climate Change Mitigation and Adaptation
  • Robust Environmental and Social Governance (ESG) Policy

Our development impact framework

AFC’s DI Framework provides a systematic approach to measure and understand how our investments in Africa support sustainable economic growth, social prosperity and industrialisation. It builds on our definition of sustainability which comprises six key pillars: environmental and social risks, occupational health and safety, economic development, social inclusion, climate finance, and corporate social responsibility.

To ensure that DI is always considered, we have integrated the framework into our investment process at multiple stages including deal screening, due diligence, deal approval, monitoring and reporting. We also leverage on the Joint Impact Model, a web-based tool for impact-oriented investors – developed jointly by Development Finance Institutions and Multilateral Development Banks (CDC, FMO, BIO, Proparco, AfDB and FinDev Canada) in collaboration with Steward Requeen to measure DI across our portfolio.

Development Impact Reporting

Our focus on Development Impact – as a core tenet of sustainability – is about meeting the needs of the present generation without compromising the ability of future generations to meet their own needs.

Climate Finance & Climate Change Mitigation and Adaptation

We remain committed to promoting transition to a green economy, reducing GHG emissions and enhancing the capacity of projects to achieve climate change mitigation/adaptation, while pursuing long-term sustainable development.

Robust ESG Policy

AFC maintains and applies a robust Environmental Social and Governance (ESG) Policy to cover all our activities, based on the following international standards: IFC’s Performance Standards, the Equator Principles, World Bank Group’s Environmental, Health and Safety Guidelines, and African Development Bank Integrated Safeguards System.

Our impact specialisms

Our Approach to Investing

Supporting our clients every step of the way – even during the most challenging times

AFC as a catalyst to mobilise additional investment

Focusing on innovation to catalyse and open up new markets and countries to FDI

Djibouti Wind Farm and the Djiboutian Private Sector IPP Market

Project Development as AFC’s unique asset class

AFC takes the lead on projects and early-stage risk by providing project development capital and structuring expertise, i.e. handling the project through to bankability and financial close.

Partnerships with Governments – enabling them to achieve their national development ambitions

Governments also need to be supported to invest in social and hard infrastructure to support economic recovery in their countries.
Coming soon!