VIENNA: The OPEC Fund for International Development and Africa Finance Corp. signed a $50 million loan agreement to finance the development of infrastructure critical to economic growth and job creation across the continent, the Emirates News Agency reported on Sunday.
AFC is a multilateral financial institution with 39 member countries. It was launched to provide financing and private sector-driven infrastructure solutions in key sectors including power, transportation, heavy industries, telecommunications and natural resources.
The 10-year loan will be used to improve connectivity, transportation, logistics, trade and energy access across Africa.
It follows the OPEC fund’s previous $50 million 10-year loan to AFC in January 2021, and is in line with their cooperation agreement signed in 2017.
Africa “continues to be a key region” for the fund, “with more than 45 percent of our aggregate financing dedicated to the continent,” said Director General Dr. Abdulhamid Alkhalifa.
“Sustainable infrastructure development is key to unlock Africa’s vast potential and enable it to fully utilize its resources.
“Working with local partners on the ground such as AFC helps to deepen our impact and support Africa’s development agenda.”
AFC CEO Samaila Zubairu said the corporation “has enjoyed a long-standing partnership” with the OPEC fund, “and we are delighted to collaborate again to support the work we do in developing critical infrastructure in Africa.
“Developed and developing countries alike are battling the chronic challenges brought on by a wave of global shocks, and these challenges will only be solved by working together through partnership and engagement between the world’s leading finance institutions.”
In the aftermath of the COVID-19 pandemic, global supply chain disruptions and rising costs have slowed Africa’s economic growth, the Emirates News Agency reported.
The OPEC fund and AFC are collaborating to increase access to long-term sustainable finance for infrastructure projects. AFC has invested more than $11 billion in projects in 36 African countries.
