• FinDev Canada loans $100M to AFC for sustainable infrastructure
• Funds target clean energy, low-emission transport in sub-Saharan Africa
• Deal marks Canada’s first partnership with AFC to boost development
  

FinDev Canada, the Canadian government’s development finance institution, said on Oct. 20 it has provided a $100 million loan to the Africa Finance Corporation (AFC) to expand financing for sustainable infrastructure in sub-Saharan Africa. The deal marks the first collaboration between the two institutions and will strengthen AFC’s ability to fund long-term projects in key sectors including energy, transport, and climate-resilient infrastructure.

The funds will support projects aimed at tackling climate change and improving energy access. “In Sub-Sahara Africa, approximately 565 million people lack access to electricity, significantly impacting the region’s ability to meet its Sustainable Development Goals,” FinDev said in a statement. According to Empower Africa, Nigeria, the Democratic Republic of Congo, and Ethiopia account for nearly 40% of the continent’s energy deficit.

The financing will go toward solar and wind power projects and low-emission transport systems. One priority project is the development of an intercity rail network in the Democratic Republic of Congo to cut carbon emissions and modernize public transit. Banji Fehintola, AFC Board Member and Chief Financial Officer, said the partnership broadens AFC’s funding base and strengthens North America’s engagement in Africa’s economic growth.

FinDev joins AFC’s pool of global institutional lenders, which includes Germany’s KfW, Italy’s Cassa Depositi e Prestiti (CDP), the Export-Import Banks of China and India, the International Finance Corporation (IFC), France’s Proparco, the Netherlands’ FMO, Germany’s DEG, and the U.S. International Development Finance Corporation (DFC).

FinDev Canada, a subsidiary of Export Development Canada (EDC), finances impact-driven businesses and projects in developing countries. Since its launch in 2018, it has invested across Africa, Latin America, and South Asia through loans, equity investments, and guarantees. Its focus areas include agri-food value chains, green growth, and financial services. The partnership underscores the growing role of bilateral development institutions in financing long-term infrastructure across Africa.

Chamberline Moko