• AFC raises $100 million from India’s Exim Bank over five years
• Funding to support infrastructure and industrial projects in Africa
• Deal reflects growing reliance on Asian financing sources

The Africa Finance Corporation (AFC) said on April 20 it had secured a $100 million loan over five years from the Export-Import Bank of India.

The financing will support the institution’s activities in developing infrastructure and industrial assets across Africa. India’s Exim Bank, established in 1982, plays a key role in financing and coordinating the country’s foreign trade operations.

The deal builds on an existing relationship between the two institutions. In 2021, the Indian bank extended a $100 million loan to AFC with a ten-year maturity to support infrastructure projects during the economic fallout from the Covid-19 pandemic. The new agreement signals continued financial backing for large-scale projects on the continent.

The transaction also reflects AFC’s broader strategy to tap into Asian capital markets. As of November 2019, investments from countries such as China, Hong Kong, Singapore, Malaysia, and Taiwan totaled around $1.2 billion within the institution.

More recently, AFC secured $300 million from the Export-Import Bank of China in September 2023 and raised $389 million in 2022 through a bond issuance on the Japanese market.

Founded in 2007, AFC brings together 48 member countries and has invested more than $18.5 billion across 36 African nations. Its focus remains on financing and structuring infrastructure and industrial projects, in a context of significant investment needs across the continent.

Chamberline Moko