AFRICA FINANCE CORPORATION
- Reference: P-Z1-HAA-041
- Approval date: 15/02/2012
- Start date: 18/10/2012
- Appraisal Date: 01/11/2011
- Status: OngoingOnGo
- Implementing Agency: AFRICA FINANCE CORPORATION
- Location: multicountry
A Line of Credit (LOC) to Africa Finance Corporation (AFC) in the amount of USD200 million to fund a pipeline of infrastructure and industrial projects from various RMCs within ECOWAS, SADC and the East African Region.
Although only in operation for a few years, the AFC has already emerged as an important financier of infrastructure projects on the Continent. Given this strong start, the AFC is expected to play a major role in the long-term to catalyze many infrastructure and industrial projects. Although AFC is expected to generate much broader development outcomes in the long term, to be consistent with the Bank's ADOA framework, the development analysis presented in this report focuses on the outcomes expected to result from the 6 projects presented in the active pipeline.
Economic Performance: 'The AFC's advanced pipeline of 6 projects covers 4 countries in SSA and will make a direct contribution towards sectors which are critical to regional economic integration and development such as transports/road/ports, power generation, fertilizers and cement production. Although AFC will only fund about 13% of the total investment costs, its participation will help to catalyze the required financing for each project and to ensure effective implementation. By catalyzing such projects, the LOC to AFC is expected to improve the economic performance of the benefiting countries by boosting regional GDP through increased economic activity and the generation of tax revenues. These projects will improve the availability of power and telecommunications in addition to enhancing agricultural production and the delivery of housing.
AKINWUMI Emmanuel Ibituase - PIFD