The Africa Finance Corporation (AFC) has secured a five-year $100 million loan from the Export-Import Bank of India to boost its capital base and accelerate investments in critical infrastructure and industrial projects across the continent.
The agreement was signed during AFC’s Investor Day in London, signalling the institution’s strategic shift toward alternative funding sources beyond traditional capital markets amid continued global financial volatility.
According to the corporation, the facility will be deployed into high-impact projects spanning transport, energy, and industrial sectors, all considered vital to Africa’s economic growth and integration.
In a statement, AFC noted that the loan would extend its funding tenor while improving access to relatively low-cost capital from export credit institutions, an option increasingly attractive as investor sentiment remains uncertain.
“This facility is an important milestone in our long-standing partnership with India Exim Bank and reflects our shared commitment to advancing infrastructure development across Africa,” said Banji Fehintola, Executive Board Member and Head of Financial Services at AFC.
The latest financing builds on a similar $100 million facility secured in 2021, highlighting deepening financial cooperation between Africa and India as both regions intensify trade and investment ties.
Analysts say the deal reinforces AFC’s deliberate strategy to diversify its funding mix and reduce reliance on Eurobond markets and other conventional sources that have become more expensive in a high-interest-rate environment.
By securing medium-term financing, the corporation is better positioned to fund long-gestation infrastructure projects that typically require patient and stable capital.
The development also reflects a broader shift among African development finance institutions toward engaging non-Western lenders, particularly in Asia, in efforts to bridge the continent’s vast infrastructure financing gap, estimated at tens of billions of dollars annually.
AFC emphasised that it would continue to pursue strategic partnerships aimed at unlocking new funding channels, while maintaining its role in mobilising capital for projects that drive regional integration, industrialisation, and sustainable growth.
