The Africa Finance Corporation (AFC), based in Lagos, is in early discussions with potential sovereign investors, including the United Arab Emirates, Qatar, and Saudi Arabia, as it seeks long-term partners focused on driving African development. The multilateral lender recently welcomed Turkey’s Exim Bank as its first non-regional equity holder in December.
Established in 2007 as a multilateral financial institution, the AFC operates under a treaty among African countries, with the primary goal of addressing the continent’s infrastructure and energy deficits. The initiative was spearheaded by Nigeria during the administration of then-President Olusegun Obasanjo, and Nigeria still maintains a majority stake of 40% plus in the AFC through its central bank.
The move to engage sovereign investors from the United Arab Emirates, Qatar, and Saudi Arabia reflects the AFC’s commitment to expanding its network of partners to further support African development initiatives. Infrastructure and energy projects, among other critical areas, continue to be focal points for the AFC’s efforts to drive economic growth and sustainable development across the continent.
The discussions with potential investors signal a strategic approach by the AFC to attract international support and collaboration in addressing Africa’s developmental challenges. As the continent looks to bridge infrastructure gaps and enhance energy capabilities, partnerships with countries possessing significant financial resources and a commitment to African development could prove instrumental in realizing these objectives.
