The OPEC Fund for International Development has supported Africa Finance Corporation (AFC) with a $50m loan to help finance and build infrastructure needed for Africa’s post-Covid recovery.

This represents the first direct financing co-operation between the two institutions. 

Abdulhamid Alkhalifa, OPEC Fund Director-General, said: “Africa’s urgent infrastructure financing needs have become even more pronounced since the onset of Covid-19. The pandemic has hampered economic growth and investment across the continent.”

“Our support to AFC will help provide sustainable financing for infrastructure development to improve connectivity, transport, logistics, trade and the creation of jobs. We look forward to a long and productive partnership with AFC. By working with experienced regional partners, our development impact is amplified.”

AFC is a financial institution with 28 member countries, established to provide financing and private sector-driven solutions for infrastructure, natural resources and industrial projects across Africa.

To date, AFC has invested over $8.4bn in projects within 35 African countries. 

The OPEC Fund signed a cooperation agreement with AFC in 2017 and this loan marks the beginning of collaboration on the ground. 

The proceeds of the 10-year loan to AFC will help address the continent’s infrastructure financing gap.

The loan will also support increased financial flows to Africa and contribute to Covid-19 recovery efforts in African economies by freeing up government funds to meet urgent financing needs related to the pandemic.

Samaila Zubairu, AFC President and CEO, said: “AFC has been engaging development partners worldwide to find ways that we can act in concert to mobilize the funds necessary for Africa’s post-pandemic recovery and optimize efficient deployment.”

“This loan is in line with AFC’s effort to support the development-vital infrastructure, from energy to transport and commerce, and to return Africa back to the path of sustainable growth and development. We are committed to working with the OPEC Fund and other partners as critical enablers of essential infrastructure development.”