The Africa Finance Corporation has secured a five-year $100m loan facility from the Export-Import Bank of India to strengthen its funding base for infrastructure and industrial development across Africa.
The facility was signed during AFC’s Investor Day in London and is aimed at supporting high-impact projects in transport, energy, and industrial assets across the continent.
The AFC said the deal reflects its strategy of diversifying funding sources beyond traditional capital markets amid global financial volatility.
Funding strategy
The institution noted that the proceeds would be deployed to critical infrastructure projects, reinforcing its role in bridging Africa’s infrastructure financing gap.
The AFC Executive Board Member and Head of Financial Services, Banji Fehintola, described the agreement as a milestone in the corporation’s long-standing partnership with India Exim Bank.
“This facility is an important milestone in our long-standing partnership with India Exim Bank and reflects our shared commitment to advancing infrastructure development across Africa,” Mr Fehintola said.
Deepening Africa–India ties
The new financing builds on a previous $100m arrangement in 2021 between both institutions, highlighting strengthening economic cooperation between Africa and India.
Analysts say the deal reflects a broader trend of African development finance institutions turning to non-Western lenders, particularly in Asia, to secure more stable and diversified funding sources.
Market implications
The AFC’s move is seen as part of a broader strategy to reduce reliance on Eurobond markets, which have become more expensive due to high global interest rates.
By securing medium-term funding, the institution aims to support long-gestation infrastructure projects that require patient capital and sustained investment.
The AFC, a leading pan-African infrastructure finance institution, said it will continue to pursue strategic partnerships to unlock new funding sources for the continent’s development needs.
It added that its focus remains on financing projects that drive regional integration, industrialization, and sustainable economic growth.
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