(Ecofin Agency) - In 2021, the two institutions had granted a US$170 million syndicated loan to Africa Finance Corporation, which is receiving the new loan.
French institution Proparco and the German development finance institution DEG recently arranged a €150 million (US$162 million) loan facility for Africa Finance Corporation (AFC). The 10-year syndicated loan will allow AFC, which finances basic infrastructure projects in Africa, since 2007, to up its investments in environmental and socio-economic infrastructures.
"The facility contributes to closing Africa’s infrastructure gap, positively impacting on the livelihood of surrounding communities, and supporting AFC in their endeavour to reduce the continent’s footprint as part of their dedicated climate resilience strategy," commented Petra Kotte, the DEG Head of Banking and German Business.
Two years earlier, in 2021, Proparco had opened a US$50 million senior credit line for AFC, in the framework of a US$170 million syndicated loan led by DEG. In a December 2022 report on trends in infrastructure financing in Africa, the Infrastructure Consortium for Africa (Ica) estimates that Africa's infrastructure financing needs in 2020 were in the range of US$59-96 billion.