The Africa Finance Corporation (AFC) has secured a $100 million loan facility from the Export-Import Bank of India, marking a significant step in its efforts to finance critical infrastructure and industrial projects across the continent.
The five-year loan agreement, finalized during AFC’s Investor Day in London, is aimed at strengthening the corporation’s funding base as it continues to expand investments in key sectors such as transport, energy, and industrial development.
The funding is expected to support high-impact projects that drive economic growth and regional integration, particularly at a time when African economies face increasing pressure from global financial volatility. By tapping into alternative funding sources like export credit institutions, AFC is positioning itself to reduce reliance on traditional capital markets, which have become more expensive due to rising global interest rates.
According to AFC officials, the deal also reflects a deepening financial relationship between Africa and India, building on a previous $100 million financing arrangement between both institutions in 2021.
The corporation noted that access to long-term, cost-efficient capital is essential for delivering large-scale infrastructure projects, many of which require sustained investment over several years. Analysts say this latest facility strengthens AFC’s ability to execute such projects while maintaining financial flexibility.
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