Africa Finance Corporation (AFC) on Saturday annouced the accession of Eritrea as its 24th member state.
The decision was ratified by His Excellency, Isaias Afwerki, President of Eritrea, on 6 November 2019.
Eritrea has experienced stable growth; driven by increased investment in the mining and extractive sectors, with an expectation to deliver an average annual GDP growth rate of circa 4-5% between 2019 and 2024.
The country’s economic growth strategy highlights a focus on scaling up infrastructure investments, specifically water and energy, to promote agricultural and industrial transformation.
Additionally, the government is committed to improving the mining sector through a natural resource planning strategy.
AFC, in line with its mandate, has committed to provide financing to the Colluli Mining Share Company for the development and construction of the Colluli Potash Project in the Danakil Depression region of Eritrea.
Successful execution of this project will make significant contributions to exports, employment, agricultural productivity, and overall social and economic development of the country.
AFC President and CEO, Samaila Zubairu, commented on the announcement: “It is my pleasure to welcome Eritrea as a member state of AFC.
The government’s efforts at prioritising infrastructure investments bodes well for the country and we are committed to supporting Eritrea’s economic development programmes.”
AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$1 billion, to be the catalyst for private sector-led infrastructure investment across Africa.
With a current balance sheet of approximately US$5.07 billion, AFC is the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service.
AFC successfully raised US$650 million in 2019, US$500 million in 2017 and US$750 million in 2015 through Eurobond issuances; out of its Board-approved US$3 Billion Global Medium-Term Note (MTN) Programme.
All Eurobond issues were oversubscribed and attracted investors from Asia, Europe and the USA.
AFC’s investment approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.
AFC invests in high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications.
To date, the Corporation has invested over US$6.6 billion in projects within 30 countries across Africa.
