By Babajide Komolafe
AFRICA Finance Corporation, AFC, yesterday, announced 51 per cent increase in its gross profit to $109.4 million for the operating year ended December 31, 2016. Established in 2007, AFC was initiated by Nigeria to be the catalyst for private sector infrastructure investment across Africa.

Joseph Nnanna

The board of the corporation is chaired by a representative of the Central Bank of Nigeria, CBN. The corporation also announced that CBN Deputy Governor, Financial System Stability, Dr Joseph Nnanna, will succeed former CBN deputy governor, Dr. Sarah Alade, as chairman of its board. This follows the retirement of Alade from the CBN last week.

Analysis of the corporation’s operating result for 2016 shows that total comprehensive income rose by 64 per cent to $115.3 million while total assets rose 13 per cent to $3.4 billion. The growth in income and profitability were driven by 21 per cent increase in net interest income, which rose to $192.8 million and 121 per cent increase in fees, commissions and other income, which rose to $ 21.9 million in 2016.

Commenting on the results, President and Chief Executive officer of AFC, Mr. Andrew Alli, said the corporation was targeting to be a $5 billion organisation by 2019.

He said, “2016 has been a successful year for AFC, reflected by our income and profit growth and our balance sheet strength. Operationally, we’ve had a great year too, with investments including Gabon’s Special Economic Zone, paving the way for greater economic diversification in the country.

“We’ve also strengthened our relationships with development finance institutions and the private sector – for example by launching a Joint Venture with Harith – merging power assets to create a pioneering African Power Platform Vehicle.

“AFC aims to be a US$5 billion Corporation by 2019 and despite a challenging economic environment, we are confident that we have built the firm foundations necessary to continue delivering positive socio-economic change across Africa. Ahead of our 10 year anniversary in May, we look forward to the next chapter in AFC’s growth story.”

In her valedictory remarks the outgoing chairman, Dr. Alade, stated: “I have had the pleasure of overseeing some of the company’s milestones, including the Company’s inaugural Eurobond, Swiss Franc (CHF) and Sukuk issuances, expansion of country membership from 9 to 14, expansion of the Corporation’s operational footprint to 28 countries, growth in the balance sheet to $3.4 billion, and, the creation of the African Power Platform vehicle with Harith General Partners of South Africa. I have no doubt that the Corporation will continue to flourish under my successor and wish both him and AFC the best in the future.”

Commenting on the retirement of Dr. Alade from the board of the corporation, Alli said: “We are all very grateful for the notable contribution Dr Alade  made to AFC during her time as Chairman of the Board.”

“Over the course of her tenure the Corporation has expanded rapidly, and approximately US$ 4billion has now been invested in projects across 28 African countries, helping to drive economic and social development. We welcome Dr Nnanna to his new role and look forward to working with him to continue this success in the future.”