By: Amarachi Okonkwo

The Africa Finance Corporation has secured a $100 million, five-year loan facility from the Export-Import Bank of India, in a move that strengthens its funding base as it accelerates investments in infrastructure and industrial projects across Africa.

The facility, which was signed during AFC’s Investor Day held in London, reflects the corporation’s deliberate strategy to diversify its funding sources beyond traditional capital markets. This approach comes amid persistent global financial volatility, rising interest rates, and tightening liquidity conditions that have made conventional borrowing more expensive.

According to a statement released by AFC on Monday, proceeds from the loan will be deployed toward high-impact projects across key sectors, including transport, energy, and industrial development. The financing is also expected to support long-term initiatives that are critical to boosting economic integration and productivity across the continent.

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AFC noted that the agreement not only extends the tenor of its liabilities but also enhances access to relatively low-cost capital through export credit institutions—an increasingly attractive funding channel for development financiers navigating uncertain market conditions.

Commenting on the development, AFC’s Executive Board Member and Head of Financial Services, Banji Fehintola, described the facility as a significant milestone in the corporation’s relationship with India Exim Bank.

“This facility is an important milestone in our long-standing partnership with India Exim Bank and reflects our shared commitment to advancing infrastructure development across Africa,” Fehintola said.

The latest agreement builds on an earlier $100 million financing secured between both institutions in 2021, underscoring a deepening financial and economic partnership between Africa and India. The growing collaboration aligns with broader efforts by both regions to expand trade, investment flows, and development cooperation.

Market analysts say the transaction highlights AFC’s continued success in diversifying its funding mix, reducing its reliance on Eurobond issuances and other traditional debt instruments that have become increasingly costly in a high-interest-rate environment. By securing medium-term financing at competitive rates, AFC is better positioned to fund capital-intensive infrastructure projects that typically require patient, long-term investment.

The deal also signals a broader shift among African development finance institutions toward engaging non-Western lenders, particularly across Asia, as they seek to bridge the continent’s infrastructure financing gap estimated at tens of billions of dollars annually.

As a leading infrastructure solutions provider on the continent, AFC has played a catalytic role in mobilising capital for projects that drive industrialisation, enhance regional connectivity, and support sustainable economic growth. The corporation reiterated its commitment to forging strategic partnerships that unlock new funding pools and expand its investment capacity.

With this latest facility, AFC further consolidates its position as a key intermediary channeling global capital into Africa’s infrastructure pipeline, even as macroeconomic headwinds continue to challenge access to affordable financing.