|Approval Date||16 Nov 2022|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
A financial package comprising 2 components namely: (i) a USD 350 million senior debt facility for on-lending to support eligible infrastructure projects and (ii) a USD 50 million Trade Finance Line of Credit (TF LoC) to support the expansion of AFC’s trade finance operations across the continent. Overall, the financial package will (i) provide critically needed long-term Dollar liquidity to support its expanding pipeline of infrastructure projects and (ii) provide shorter term funding to support export-import led transactions financed by the AFC, especially those which support importation of intermediate and capital goods including some which may be required to support the delivery of infrastructure projects being financed by AFC.
The development outcomes from this investment will derive from addressing the critical infrastructure gap on the continent by promoting industries, creating additional jobs, adding value, and stimulating overall economic growth. This investment will also contribute to filling market demand for trade finance in Africa by supporting trade in various vital economic sectors such as agriculture, energy, manufacturing, and construction. In addition, the project is expected to promote intra-Africa trade and regional integration as well as facilitate importation of critical capital goods, agricultural inputs, medical supplies and foodstuffs.
The proposed financial package will provide much needed long-term funding to AFC to match it financing requirements in the infrastructure space. The package will also help increase AFC’s interventions in the 54 African countries. The main source of additionality is non-financial, arising from the provision of an AFAWA technical assistance designed to improve the financial and technical capacity of beneficiary financial institutions targeting WSMEs.
African Development Bank
|Last Update||22 Mar 2023|
|Name||Tiatan Mariam YEO-DEMBELE|