Lagos, Nigeria — The Africa Finance Corporation (AFC) has achieved a major milestone in African infrastructure financing, closing its largest-ever syndicated loan worth $1.5 billion to support critical projects across transport, energy, mining, and climate resilience sectors.
This AFC infrastructure financing facility, announced on September 29, 2025, was oversubscribed by banks from Asia, the Middle East, Europe, and Africa, signaling renewed global confidence in Africa’s infrastructure transformation story despite tight global credit markets.
“This raise is a statement about global confidence in Africa’s growth story,” said Samaila Zubairu, President and CEO of the AFC. “It allows us to accelerate infrastructure projects that connect, power, and industrialize the continent.”
🌍 A Milestone in AFC Infrastructure Financing
The AFC infrastructure financing deal — initially targeting $1.3 billion — closed at $1.5 billion after overwhelming investor demand. Major participants included Bank of Communications (China), Burgan Bank (Kuwait), Export Development Bank of Egypt, and Hua Nan Bank (Taiwan).
The facility will fund AFC’s infrastructure pipeline across multiple priority sectors:
- Transport: including the landmark Zambia–Lobito Rail Corridor connecting Zambia’s Copperbelt to Angola’s Lobito Port.
- Energy Transition: support for renewable projects in Nigeria, Ghana, and Kenya, tied to Nigeria’s $410 Billion Energy Transition Vision.
- Mining Logistics: investments in the critical-minerals supply chain and regional processing hubs.
- Climate Infrastructure: co-financing adaptation projects alongside Climate Fund Managers’ CI2 Facility.
⚙️ Financing Structure and Investor Confidence
The three-year syndicated loan is a cornerstone of AFC’s broader strategy to mobilize private capital for Africa’s infrastructure financing gap — estimated at over $170 billion annually.
Structured as a multi-currency facility, the deal combines commercial lending, export-credit lines, and green-finance tranches that align with global ESG frameworks.
“Our mission is to prove that African projects are investable,” said Banji Fehintola, AFC’s Senior Director for Treasury and Financial Institutions.
The oversubscription shows strong appetite for AFC infrastructure financing, even amid global monetary tightening — a sign that investors are viewing Africa as a long-term growth destination rather than a risk frontier.
External reference: Reuters – AFC Raises Record $1.5 Billion Loan to Back African Infrastructure.
🚆 Projects Powered by AFC Infrastructure Financing
AFC’s active portfolio spans 40+ countries, with projects transforming key sectors:
| Sector | Project | Location | Impact |
|---|---|---|---|
| Transport | Zambia–Lobito Rail Corridor | Zambia / Angola / DRC | Connects Copperbelt to Atlantic port; cuts transport time from 45 to 7 days |
| Ports & Logistics | Lekki Deep Sea Port Phase II | Nigeria | Expands West Africa’s largest deep-sea trade hub |
| Renewables | Solar & Smart-Grid Expansion | Ghana / Kenya / Nigeria | Improves access to clean power for 10M+ people |
| Mining Infrastructure | Central African Power Interconnector | Zambia / DRC | Stabilizes electricity for industrial mining corridors |
| Climate Adaptation | CI2 Water Resilience Projects | Kenya / Namibia | Provides sustainable irrigation and flood defense |
Each initiative demonstrates AFC’s ability to blend commercial discipline with developmental impact — core to the continent’s sustainable growth narrative.
🌱 ESG and Sustainable Investment Priorities
At least 30% of the AFC infrastructure financing proceeds will be directed to green and climate-aligned projects, supporting the UN Sustainable Development Goals (SDGs) and Paris Agreement objectives.
By integrating sustainability metrics into all new investments, AFC ensures long-term profitability and impact. The corporation is also collaborating with the Global Infrastructure Facility (GIF) and the Africa Adaptation Acceleration Program (AAAP) to expand climate-ready infrastructure.
For example, part of this financing may be allocated to blended-finance ventures similar to Climate Investor Two, where public and private funds co-invest in energy, water, and waste management.
💡 The Role of Diaspora and Private Capital
The AFC’s $1.5 billion raise also opens doors for diaspora investors and African sovereign funds to participate in infrastructure co-financing.
Through infrastructure bonds, equity participation, and green-finance vehicles, the diaspora can leverage AFC’s credit reputation to invest safely in large-scale projects.
This builds on models outlined in Diaspora Bonds & Diaspora Capital, showing how the global African community can directly fund transformative infrastructure while earning solid returns.
🧭 Why This Matters for Africa’s Growth
AFC’s continued success in mobilizing private capital demonstrates a clear shift: Africa’s infrastructure future will be financed through innovation, not aid.
Each dollar raised multiplies into job creation, industrial development, and trade competitiveness. Projects like the Zambia–Lobito rail corridor or the Lekki Deep Sea Port are not isolated efforts — they are keystones in a continental network that will define Africa’s position in the next global supply chain.
The AFC infrastructure financing model — blending development finance with market rigor — serves as a template for Africa’s sustainable development decade.
🚀 Outlook: Africa’s Financing Momentum Grows
With this oversubscribed facility, AFC has now raised more than $14 billion cumulatively since inception, financing over $13 billion in projects across transport, power, and industry.
As other DFIs, such as Afreximbank, AfDB, and Climate Fund Managers, expand their own portfolios, the continent’s infrastructure financing ecosystem is becoming more diversified, more resilient, and more attractive to international investors.
“This isn’t just a loan,” said CEO Zubairu. “It’s a message — Africa is ready for scale.”
