The Africa Finance Corporation has secured a US$100 million, five-year loan facility from the Export-Import Bank of India to support infrastructure and industrial development projects across the continent.
The agreement was signed during AFC’s Investor Day in London, reinforcing a long-standing partnership between the two institutions and highlighting growing financial cooperation between Africa and India.
The facility will be used to finance critical infrastructure projects spanning sectors such as power, transport, natural resources and telecommunications — areas seen as central to accelerating industrialisation and economic growth across Africa.
AFC said the transaction comes at a time of heightened global market volatility and shifting investor sentiment, underscoring the importance of diversifying funding sources beyond traditional capital markets.
By tapping into export credit institutions like India Exim Bank, AFC is seeking to secure more stable, medium-term financing while expanding its access to alternative liquidity pools.
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“This facility is an important milestone in our long-standing partnership and reflects our shared commitment to advancing infrastructure development across Africa,” said Banji Fehintola, AFC’s Executive Board Member and Head of Financial Services.
He added that access to long-term capital remains critical for delivering large-scale, transformative projects on the continent.
The deal builds on a previous US$100 million financing agreement signed in 2021, further deepening ties between the two institutions and signalling continued confidence in AFC’s investment strategy.
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Analysts say such partnerships are becoming increasingly important as African infrastructure developers face tighter global financial conditions, rising borrowing costs and increased competition for capital.
Africa’s infrastructure financing gap is estimated in the tens of billions of dollars annually, covering deficits in energy supply, transport networks, industrial capacity and digital infrastructure.
Institutions like AFC play a catalytic role by structuring bankable projects and mobilising private and institutional capital to bridge this gap.
Since its establishment in 2007, AFC has invested more than US$18.5 billion across 36 African countries, building a portfolio of projects designed to enhance regional integration and support sustainable development.
The corporation currently counts 48 member states and has positioned itself as a key player in financing large-scale infrastructure, particularly in high-impact sectors.
The latest funding also reflects a broader trend of increased engagement between African financial institutions and Asian partners, particularly as countries look to diversify economic ties and reduce reliance on Western capital markets.
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India, in particular, has been expanding its footprint in Africa through trade, investment and development finance, often focusing on infrastructure and industrial projects.
For AFC, the facility strengthens its ability to deploy flexible and cost-efficient capital, enabling it to respond more effectively to evolving project needs and market conditions.
The corporation said it would continue to pursue innovative financing structures and strategic partnerships to scale up investment across the continent.
As Africa seeks to accelerate industrialisation and close longstanding infrastructure gaps, access to reliable, long-term financing is expected to remain a decisive factor in determining the pace and success of development efforts.
