Africa Finance Corporation (AFC) and Germany’s International project and export finance bank, KfW IPEX-Bank, have signed a $300m Framework financing agreement.

The facility will be accessible to infrastructure projects in Africa developed by AFC, by providing long-term financing of European equipment and services imported for such projects.

“The Agreement gives AFC access to cheaper long-term financing to support clients importing European equipment and services for infrastructure projects. Moreover, the ECA backing helps AFC reduce the risks of long term import financing,” commented AFC on the deal.
 
The Framework financing agreement is designed to support German and European exporters and help address Africa’s infrastructure development needs.

Projects financed under the agreement will be covered by guarantees from European Export Credit Agencies (ECAs).

Within the KfW Group, KfW IPEX-Bank is responsible for international project and export finance.

Its function of providing financing to boost the German and European economy is derived from the legal mandate assigned to KfW.

It offers medium- and long-term financing to support key export industries, to develop economic and social infrastructure and to fund environmental and climate protection projects.

KfW IPEX-Bank operates as a legally independent subsidiary and plays a major role in fulfilling KfW’s promotional mission. It is represented in the most important economic and financial centres across the globe.

AFC is an African private sector led multilateral development finance institution, established in 2007 to invest in infrastructure across Africa.

The current member countries are Ghana, Nigeria, Guinea-Bissau, Guinea, Liberia, Sierra-Leone, The Gambia, Chad and Cape Verde.

The Corporation is headquartered in Lagos, Nigeria.

AFC is involved as an investor, developer and financier of various infrastructure projects in Africa with product offerings including debt, equity, and mezzanine instruments within the project finance, trade and structured finance and equity investment space.

In addition, AFC offers clients, financial advisory, project development and technical advisory services across five major focus sectors: power, natural resources (oil, gas and mining), heavy industries, transport infrastructure and telecommunication infrastructure.