The Africa Finance Corporation has secured a five-year $100m loan facility from the Export-Import Bank of India, strengthening its funding base as it ramps up investment in critical infrastructure and industrial projects across the continent.
The facility, signed during AFC’s Investor Day in London, underscores the institution’s strategy of tapping alternative liquidity sources beyond traditional capital markets at a time of global financial volatility. Proceeds will be deployed to support high-impact projects spanning transport, energy, and industrial assets across Africa.
AFC said in a statement on Monday that the deal extends its funding tenor while reinforcing its access to cost-efficient capital from export credit institutions, a funding channel increasingly being leveraged by development financiers seeking stability amid shifting investor sentiment.
“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,” AFC’s Executive Board Member and Head of Financial Services, Banji Fehintola said.
The agreement builds on a previous $100m financing secured in 2021 between both institutions, highlighting a deepening financial relationship between Africa and India as both regions seek to expand economic cooperation and trade ties.
Analysts say the transaction signals AFC’s continued ability to diversify its funding mix, reducing reliance on Eurobond markets and other conventional sources that have become more expensive in a high-interest-rate environment. By locking in medium-term financing, the corporation is better positioned to execute long-gestation infrastructure projects that require patient capital.
The deal also reflects a broader shift among African development finance institutions toward engaging non-Western lenders, particularly in Asia, to bridge the continent’s infrastructure financing gap, estimated in the tens of billions of dollars annually.
AFC, which plays a catalytic role in mobilising capital for infrastructure across Africa, said it would continue to pursue strategic partnerships to unlock new pools of funding. The institution has been at the forefront of financing projects aimed at boosting regional integration, supporting industrialisation, and driving sustainable economic growth.
With this latest facility, AFC further cements its role as a key intermediary channelling global capital into Africa’s infrastructure pipeline, even as macroeconomic headwinds continue to test access to affordable financing.
