The AFC Project Development team looks to take early stage projects from feasibility through to financial close. The division leverages on the AFC’s institutional knowledge of the requirements of a bankable project, in-house technical expertise, extensive network of partners and significant balance sheet size to ensure the project development process is streamlined and projects are developed to the highest standards for bankability. The team offers project development products to third-party developers and governments and has the in-house capacity to develop projects on its own account.
Project Development Offerings
- Project Development Advisory: AFC is able to provide access and knowledge sharing through the African Project Developer’s Initiative (APDI). It is a think tank and network led and set up by AFC, to improve project development and project development standards on the continent, ensuring that more projects in Africa achieve bankability.
- Co-Development: At conception or during the development process, AFC is able to provide financial and project structuring and/or technical advisory to strong developers.
- End-to-End Project Co-ordination: As lead developer, AFC is able to take projects, (individual projects or integrated projects in ecosystems) from conception through to operations.
Range of Deal Sizes
AFC’s Project Development exposure to a single project ranges between US$250,000 to US$20 million. The Corporation provides project development financing via:
- AFC’s Balance Sheet: Per project, AFC is able to provide between US$2 million to US$20 million in financing from its balance sheet. The financing can be in the form of a corporate project development facility, project development loans and project development equity.
- Power: generation (on & off-grid), transmission and distribution
- Transport Infrastructure: roads, rail, aviation, ports, marine and logistics
- Natural Resources (Oil and Gas, Extractives & Mining): Near production assets and associated services
- Heavy Industries: manufacturing & processing (petrochemicals, refinery, steel, fabrication, beneficiation, fertiliser, cement & industrials)
- Telecommunications: operators, infrastructure, and shared services
Eligible Use of Funds
AFC’s PD capital is limited to funding third party advisory services and expenses required to take the project from concept to bankability, including:
- Financial & commercial feasibility, market assessment and structuring
- Environmental scoping and impact assessments
- Documentation and negotiation of project and financing agreements
- Financial modelling and financial advisory
- Technical design
- Resource assessment review
- Legal advisory
Typical Information Request
- Profile of sponsors & track record
- Business plan and pre-feasibility study
- Preliminary viability study
- Preliminary financial model
- Use of funds, assumptions & returns
- Project Development Budget
- Cost estimates of activities to financial close
- Project development schedule with indicative timelines and responsibilities
- Legal and regulatory status
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