Africa Finance Corporation has signed an agreement with German development bank KfW for a $150 million, 15-year loan facility. The funds will be used to refinance projects in the power, telecommunications, transport and heavy industry sectors across a number of countries. It’s anticipated that AFC will draw down the loan by the fourth quarter of this year.
Given the widely estimated annual infrastructure deficit of $90 billion face by the continent, Andrew Alli, AFC’s President & CEO noted the importance of this and similar loans in helping narrow the gap and stimulate economic development on the continent.
“Not only will this loan facility from KfW add valuable capital to our financial reserves but the 15-year tenor period is particularly suited to funding the long-term, large-scale infrastructure projects the continent so desperately needs,” he said.
The loan facility was granted following a due diligence and credit appraisal undertaken by KfW. AFC was recently awarded an A3/P-2 investment grade credit rating with a stable outlook by Moody’s for the third consecutive year.