Africa Finance Corporation increases its total assets by 16% to $8.56 billion

Africa Finance Corporation (AFC), despite the pandemic and commodity headwinds affecting its operating environment, grew its total assets by 16.3% to a record $8.56 billion.

The Company also increased its annual profit by 26.6% to $209.7 million in 2021, crossing the $200 million mark for the first time in its 15-year history, from $165.5 million. in 2020.

The increase could in part be attributed to investments in high-impact assets in targeted sectors across Africa. The Corporation has leveraged its credit rating and investment grade reputation to mobilize financing from international markets to help reduce Africa’s infrastructure deficit.

Speaking on the performance, Samaila Zubairu, President and CEO of AFC, said 2021 has been a year of solid progress in the Company’s core objectives of creating value for African economies through instrumental infrastructure stimulating growth and job creation.

“We have proven in our 15-year history that you can successfully build a track record in infrastructure investing in Africa – and there has never been a better time to do it,” Zubairu said. in a company statement.

AFC’s reach on the continent is now greater than it has ever been, with investments expanded to 35 countries and cumulative disbursements rising 14% to $9.9 billion.

The Society has increased the number of Member States from five to 33, with the membership of Burkina Faso, the Democratic Republic of Congo, Egypt, Morocco and Niger.

Among the projects in 2021, AFC invested $150 million for the development of integrated cashew and cotton industrial parks in Benin and Togo; provided a $200 million corporate facility to BUA Industries Limited for the construction of a sugar refinery and ethanol plant in Nigeria; and invested $175 million in the Baomahun gold project in Sierra Leone.

AFC Capital Partners (ACP) opened as an independent asset management firm and launched its first product, the Climate Resilient Infrastructure Fund, with the aim of raising $500 million in 12 months and $2 billion over the next three years to invest in robust energy, transportation, buildings and other infrastructure.

The past year has also seen AFC successfully launch two new products through the Syndications unit – A/B Bonds and Credit Insured B Loans – which will significantly enhance the ability to channel capital from the markets. of global investment to the African continent.

The Company continued to diversify its funding, with a 21.5% increase in borrowing year-over-year to $6.19 billion. AFC successfully tapped global debt markets by issuing $1.8 billion in new loans and bonds during the year.

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Luisa D. Fuller