The Africa Finance Corporation has secured a five-year $100 million loan from the Export-Import Bank of India, strengthening its capital base as it accelerates investments in critical infrastructure and industrial projects across the continent.
The agreement, signed at AFC’s Investor Day in London, highlights the corporation’s deliberate shift toward alternative funding sources beyond traditional capital markets, amid persistent global financial volatility. The funds will be channelled into high-impact projects spanning transport, energy, and industrial sectors across Africa.
In a statement issued Monday, AFC said the facility not only extends its funding tenor but also improves access to relatively low-cost capital from export credit institutions—an increasingly attractive option for development financiers navigating uncertain investor sentiment.
“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,” said Banji Fehintola, Executive Board Member and Head of Financial Services at AFC.
The latest deal builds on a similar $100 million financing secured in 2021, underscoring deepening financial ties between Africa and India as both regions seek to expand trade and economic cooperation.
Market analysts say the transaction reinforces AFC’s strategy to diversify its funding mix, reducing exposure to Eurobond markets and other conventional sources that have grown costlier in a high-interest-rate environment. By securing medium-term financing, the institution is better positioned to support long-gestation infrastructure projects that require patient capital.
The facility also reflects a broader trend among African development finance institutions to engage non-Western lenders, particularly in Asia, as they work to close the continent’s vast infrastructure financing gap, estimated at tens of billions of dollars annually.
AFC said it will continue to pursue strategic partnerships to unlock new funding channels, maintaining its role in mobilising capital for projects that promote regional integration, industrialisation, and sustainable economic growth.
With the new facility in place, the corporation further consolidates its position as a key conduit for directing global capital into Africa’s infrastructure pipeline, even as macroeconomic headwinds continue to pressure access to affordable financing.
