DEG, FMO support AFC to boost infrastructure development in Africa

on   /   in Business 12:09 am   /   Comments

By William Jimoh

Africa Finance Corporation, AFC, has secured a US$ 60 million long term facility provided by the German development finance institution DEG in collaboration with the Netherlands Development Finance Company, FMO to foster infrastructural development on the continent.

The Company President and Chief Executive Officer Andrew Alli who disclosed in Lagos, noted that the facility comes together with a technical assistance programme from DEG to AFC, to enhance the Corporation’s environmental and social risk management processes.

According to him, “The AFC is pleased to announce that following completion of a rigorous due diligence process by a joint team from DEG and FMO, this facility will be utilized for on-lending to infrastructure projects in Africa.

“Apart from the liquidity that this transaction provides, the line of credit is of strategic importance to AFC, as it comes with a technical assistance programme to support our environmental and social risk management system; a key pillar in helping to deal with risks often found in our core sectors. The facility also deepens our relationship with two key strategic partners.

Bruno Wenn, Chairman of DEG’s Management Board also commented “Our commitment enables AFC to further finance the expansion of infrastructure across West Africa that is needed for private sector development. We are pleased that DEG is able to provide this important financing together with our cooperation partner FMO, thereby forging a strategic partnership aimed at Africa’s economic development.”

In addition, Jurgen Rigterink, Chief Investment Officer of FMO commented “This facility reinforces FMO’s mandate, which is to provide long term capital for projects in developing markets as well maximizing the development impact of such investments. Our methodology is designed to make sure that FMO’s has a good financial return on investment as well as positive environmental and social effects.”

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