OPEC Fund loans $50m to AFC

The OPEC Fund for International Development and the Africa Finance Corporation have teamed up to secure the future of African infrastructure through a $50 million loan. The loan will help to improve the connectivity, transport, logistics, trade and access to energy across Africa, and doubles the OPEC Fund’s initial $50 million commitment to the AFC from January 2021.

OPEC Fund Director-General, Dr. Abdulhamid Alkhalifa, spoke on the importance of sustainable infrastructure development, saying it’s crucial to unlock Africa’s potential and fully utilize its resources. He also emphasized the significance of working with local partners like the AFC to deepen their impact and support Africa’s development.

AFC President and CEO, Samaila Zubairu, expressed his delight at the collaboration between the two institutions and the opportunities it presents for developing critical infrastructure in Africa. He acknowledged that both developed and developing nations face challenges brought on by the global pandemic, and believes these challenges can only be solved through partnerships and engagement between leading finance institutions.

The COVID-19 pandemic has led to supply chain disruptions, rising costs and slower economic growth in Africa, widening the continent’s infrastructure funding gap. The collaboration between the OPEC Fund and AFC aims to increase access to long-term sustainable finance for infrastructure projects, aligning with the United Nations Sustainable Development Goals 9 (Innovation and Infrastructure) and 17 (Partnerships).

As a multilateral financial institution with 39 member countries, AFC has invested over $11 billion in projects across 36 African countries. The organization is dedicated to providing financing and private sector-driven solutions for infrastructure in key sectors such as power, transport, heavy industries, telecommunications, and natural resources.