Africa Finance Corporation (AFC) is at the forefront of revolutionizing infrastructure development in Africa. Recently, the AFC spearheaded a significant commercial funding initiative amounting to €381.5 million to bolster Angola’s road network by constructing 186 bridges and implementing crucial enhancements.
The partnership involved various key players, with AFC taking the lead as the mandated arranger for the commercial tranche, investing €85 million in conjunction with export credit agency financing from the Export-Import Bank of the U.S. and the U.S. Private Export Funding Corporation. Standard Chartered Bank, Conduril, and Acrow also played pivotal roles in this transformative project. The signing ceremony occurred during the US-Africa Business Summit in Dallas, Texas, showcasing the collaborative efforts of multiple stakeholders.
The project, initiated by the Ministry of Public Works, Urban Planning and Housing in Angola, focuses on enhancing accessibility in remote regions to stimulate industrial and commercial activities. By reducing transport costs, improving travel times, and creating job opportunities, the initiative aims to uplift communities and alleviate poverty. Specifically, the project targets bolstering the agricultural sector to boost food production, reduce dependency on imports, and establish resilient local food chains.
Sanjeev Gupta, AFC Board Member and Head of Financial Services, emphasized the project’s transformative impact on Angola’s economy, diversifying it beyond oil dependency. Furthermore, AFC’s commitment aligns with Angola’s climate adaptation plan by prioritizing climate-resilient infrastructure development.
AFC’s strategic investments extend beyond this project, as demonstrated by their lead role in developing the Lobito Corridor, connecting Zambia to Angola’s rail line and port of Lobito. By partnering with various entities, including governments and international organizations, AFC is driving rural transport connectivity and fostering regional integration.
The Republic of Angola’s membership in AFC underscores the commitment to sustainable development and economic growth through infrastructure investments. AFC’s initiatives not only enhance Angola’s infrastructure but also pave the way for a prosperous and interconnected African continent.
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