Africa Finance Corporation is setting up a $2 billion fund to help institutions in Africa to recover quickly from the global coronavirus pandemic as well as overcome challenges economic arising from the Russia-Ukraine war.
The Corporation says it will provide as much as 50% of the funding and mobilize the rest from other investors and development financiers.
The Lagos-based development finance institution will disburse loans to commercial lenders, regional development institutions and central banks to provide foreign currency lending to companies for trade and for other economic activities.
AFC is a pan-African Multilateral Development Financial Institution that seeks to bridge Africa’s infrastructure investment gap through the provision of debt and equity finance, project development, technical and financial advisory services.
Private investors own 55.3% of the corporation. A further 44.7% is owned by the Central Bank of Nigeria.
Since its creation, the lender has invested more than $9.5 billion in power, logistics and exploration industries in 35 African countries.