The Africa Finance Corporation (AFC) has strengthened its funding position with the signing of a five-year $100 million loan facility from the Export-Import Bank of India, a move aimed at accelerating investment in critical infrastructure and industrial development across the African continent.
The agreement was formalised during AFC’s Investor Day in London, reflecting the institution’s growing strategy of diversifying its funding base beyond traditional global capital markets. The new facility is expected to support a broad range of high-impact projects, including transport networks, energy systems, and industrial infrastructure across multiple African economies.
According to the AFC, the financing deal represents a deliberate shift toward tapping alternative liquidity sources such as export credit agencies, which are increasingly being relied upon by development finance institutions navigating a volatile global interest rate environment and tighter capital conditions.
Speaking on the transaction, AFC’s Executive Board Member and Head of Financial Services, Banji Fehintola, described the arrangement as a milestone in the corporation’s long-standing relationship with India Exim Bank. He noted that the partnership reflects a shared commitment to expanding infrastructure development and strengthening economic linkages between Africa and Asia.
The latest facility builds on an earlier $100 million financing agreement signed between both institutions in 2021, signalling a steady deepening of financial cooperation between the two parties. The renewed engagement also highlights India’s growing role in Africa’s development financing landscape, alongside traditional Western lenders.
Analysts view the transaction as part of AFC’s broader strategy to reduce dependence on Eurobond markets and other conventional debt instruments that have become increasingly costly amid sustained global interest rate pressures. By securing medium-term, relatively stable funding, the corporation is better positioned to support infrastructure projects that typically require long investment horizons and patient capital.
The deal also reflects a wider trend among African development finance institutions seeking to broaden their investor base by engaging more actively with Asian capital providers. This shift is seen as an important response to the continent’s significant infrastructure financing gap, which continues to constrain economic growth and industrial expansion.
As a key infrastructure catalyst, AFC has played a central role in mobilising private and public capital for strategic projects across Africa, particularly in areas linked to regional integration, energy access, and industrial development. The institution has consistently positioned itself as a bridge between global investors and African infrastructure opportunities.
With this latest funding arrangement, AFC further consolidates its role as a major conduit for international capital into African development projects, even as global economic uncertainty and tightening financial conditions continue to challenge access to affordable long-term financing.