Latest news with #SamailaZubairu
Zawya
27-05-2025
- Business
- Zawya
Africa Finance Corporation (AFC) Backs Mota-Engil Africa with EUR 100M Facility to Boost Gold Mining in West Africa
Africa Finance Corporation ( the continent's leading infrastructure solutions provider, today announced that it has provided a EUR 100 million, 5year term facility to Mota-Engil Africa (MEA), the regional arm of the global construction giant, Mota -Engil Group. The funding will support the acquisition of equipment, inventories, and site infrastructure for the execution of three new gold- mining contracts in Côte d'Ivoire and Mali. AFC's funding will enable Mota-Engil Africa to scale up operations in West Africa's burgeoning mining sector, where gold remains a critical export commodity and a driver of local employment and foreign exchange earnings. The new mining contracts represent a significant boost for the mining industries in both Côte d'Ivoire and Mali, countries with substantial untapped mineral potential. The facility is another milestone in AFC and MEA's longstanding strategic relationship with MEA, which began in 2016. AFC has played a leading advisory role in several of the institution's recent landmark transactions including the new Bugesera International Airport project in Rwanda, the US$2 billion Kano Moradi rail project in Nigeria and the 1,289km Lobito I rail line project in Angola, where AFC is acting as financial adviser to Lobito Atlantic Railway- the consortium comprising Mota Engil Africa, Trafigura and Vecturis SA. Commenting on the transaction, Samaila Zubairu, President&CEO of Africa Finance Corporation, said: "This transaction underscores the strength of our decade-long relationship with Mota-Engil Africa and our shared vision to deliver sustainable economic transformation across Africa. Gold continues to be a vital economic driver for many African nations, and through this investment, AFC is helping to unlock long-term value- supporting export earnings, job creation, and broader industrial development of the region.' Manuel Mota, Chairman, Mota-Enjil Africa said: 'Today marks a significant milestone for Mota-Engil Africa. We are proud to announce the successful closing of financing for three new mining projects, in partnership with Africa Finance Corporation. This achievement reflects not only the strength of our project portfolio but also the confidence that premier institutions like AFC place in our strategy, our capabilities, and our people.' This latest investment builds on AFC's strategy to expand its portfolio into critical contractor financing initiatives across Africa; not only supporting the execution of critical public and private sector projects but unlocking much needed on and off-balance sheet financing opportunities. Notably, AFC is also the commercial tranche financier of the 186 Metallic Bridges project being constructed by Conduril Engenharia S.A. in Angola. AFC continues to work with contractors, providing critical funding to unlock value and to close the infrastructure gap, driving industrialisation, economic resilience, and sustainable development across the continent. Distributed by APO Group on behalf of Africa Finance Corporation (AFC). Media Enquiries: Yewande Thorpe Communications Africa Finance Corporation Mobile : +234 1 279 9654 Email : About AFC: AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments across Africa. AFC's approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa's infrastructure development needs and drive sustainable economic growth. Eighteen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 45 member countries and has invested over US$15 billion in 36 African countries since its inception.
Yahoo
15-05-2025
- Business
- Yahoo
Africa looks to unleash local capital as US drives global uncertainty
African policymakers and bankers are exploring ways to unlock trillions of dollars tied up in the continent's institutional funds to build infrastructure amid growing uncertainty around international investment caused by erratic US trade policies. 'There is about $4 trillion in Africa, mostly in banks, pension funds and foreign reserves,' Samaila Zubairu, CEO of the Africa Finance Corporation, a Lagos-based multilateral lender, told Semafor during this week's Africa CEO Forum in Abidjan, citing research by his institution. 'The issue is, how we get it to flow into projects.' The topic was a recurring talking point for business leaders during this week's conference, with the need to deploy local capital becoming more acute after the White House dismantled its main foreign aid body USAID, piling new pressure on African government finances. Ethiopis Tafara, vice president of the International Finance Corporation, the World Bank's private investment arm, told delegates there was a need to mobilize private capital to plug gaps left by the withdrawal of aid. Governments and the private sector need to engage in more dialogue, he said, to help administrations shore up the 'bankability' of projects that could not be funded with public money. Zubairu said AFC, which specializes in infrastructure development, is in talks with authorities in Angola, Botswana, and Kenya to replicate InfraCredit, a Nigerian credit institution that supports pension fund investments in infrastructure projects, with the west African country's sovereign wealth fund providing guarantees on local currency debt. AFC is an equity investor, along with the Nigerian Sovereign Investment Authority, which strengthens InfraCredit's capital base. African investors have long wanted to unlock private capital from existing institutional funds. The thinking is that if more domestically held capital supports major projects then the continent could draw larger pools of international funds at more favorable interest rates. In areas such as infrastructure, for example, Africa is estimated to have a $100 billion a year funding gap. One way to bridge that shortfall, analysts say, would be to unlock a larger portion of African funds, which have been concentrated in more conservative assets such as fixed income and treasury bills. 'Raising financing domestically for our critical infrastructure projects is a huge priority for our continent,' said Acha Leke, chairman of McKinsey's Africa group. 'We've estimated that if African pension funds doubled their current allocation to back such projects to 4%, this could unlock more than $20 billion of additional financing per year.' One institution that has had some success in changing that mix has been Africa50, a development finance platform that seeks to help tackle infrastructure gaps. Last year Africa50's Infrastructure Acceleration Fund announced it had raised $225 million, predominantly from African development banks and funds, and hopes to hit a $500 million target this year. Joseph Atta-Mensah, a senior fellow at the African Centre for Economic Transformation think tank in Accra has argued that Africa's relationship with the World Bank and International Monetary Fund must change in order to drive economic development. 'Africa needs to make the international financial infrastructure work in its favour,' he wrote in a London School of Economics blog. The continent 'needs a new global financial architecture — one that reduces dependence on expensive commercial debt and expands access to concessional finance,' Atta-Mensah wrote. 'Innovative instruments like debt-for-climate or debt-for-investment swaps can tie sustainability to solvency.' While private capital from angel investors has played a vital role in helping to build the foundation of Africa's startup investment space, it has been heavily reliant on international funds once the startups need venture capital. There's been a push to further professionalize and expand the impact of local angel investors, according to Fadilah Tchoumba, president of Africa Business Angels Network. 'We're really focusing on accelerating local capital participation by refining our key investment vehicles to give more potential investors confidence,' said Tchoumba. 'We've also doubled down on recruiting even more African angel investors to expand our local capital base while also building partnerships with domestic and international financial institutions to increase their impact.' Pension funds can be a catalyst for solving Africa's financing crisis, according to the Africa Private Capital Association. But encouraging capital allocators to deploy capital in Africa is a challenge. Sign in to access your portfolio
Reuters
09-04-2025
- Business
- Reuters
African Finance Corp reports record $1.1 billion annual revenue
LAGOS, April 9 (Reuters) - The African Finance Corporation's (AFC) revenue rose 22.8% last year to $1.1 billion, it said on Wednesday, citing project finance and infrastructure deals across Africa. The AFC said the revenue performance was its strongest to date, adding that net income rose 22.3% to $400 million, up from $327 million a year ago. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Chief Executive Samaila Zubairu said the result shows that strategic investment in African infrastructure creates lasting value for beneficiaries and investors. "In 2024 we exceeded the billion-dollar revenue mark, delivered game-changing projects, and reinforced our financial resilience, demonstrating the scalability of our unique model that blends purpose with performance to accelerate Africa's economic transformation," Zubairu said. The corporation said it mobilised capital for African projects ranging from energy to natural resources. Some of the projects funded included the Lobito Corridor, a 1,300km railway that connects Angola's port of Lobito to the Democratic Republic of Congo and Zambia. The AFC also said it invested $150 million in the Kamoa-Kakula Copper Complex in the DRC, Africa's largest copper producer. It provided financial support for the commissioning of the Dangote refinery, Africa's largest, and continued to provide support for AFC-backed Infinity Power Holding's 10GW clean energy target. The corporation said it also invested in the 15GW Xlinks Morocco-UK Power Project, providing $14.1 million to support early stage development of a transcontinental renewable energy pipeline between North Africa and Europe.
Zawya
28-03-2025
- Business
- Zawya
A connected Africa will be a rich Africa
Africa stands at a crossroads, where the choices we make today will define the conti- nent's future for generations. Our people are driving a pow-erful grassroots movement toward greater intra-continental connectivity, demand- ing enhanced trade, jobs, education, and migration across borders. This demand is a clarion call that must be met with bold, strategic investments and innovative policies. Africa cannot afford incremental change; we need an audacious leap forward that reflects our ambition, fuels our growth, and bridges the connectivity gap that has long shack- led our development. The future of Africa hinges on our ability to link up and in- dustrialise the continent, and the time to act is now. The popular global narrative about Af- rican migration often focuses on the pain- ful and dangerous exodus to the global North, but this narrative is fundamentally misleading. The reality is that the major- ity of African migration occurs within the continent itself. In 2017, more than half of Africa's migrants – over 53% – were living in another African country, a figure that rises to over 80% in sub- Saharan Africa. This data reveals an essential truth: Africans are deeply invested in their continent, seeking opportunities closer to home rather than abroad. This intra- continental movement is about more than just migration – it is about building a future within Africa. Whether it's pursuing education, em- ployment, or trade, Africans are finding Samaila Zubairu – CEO of the Africa Finance Corporation ways to connect and collaborate with each other across borders, often in defiance of the barriers that stand in their way. For instance, despite the challenges of aca- demic mobility, 20% of African students who studied abroad in 2021 chose to do so within the continent, highlighting a strong and often overlooked desire for intra-African engagement. By intentionally nurturing and sup- porting this trend, we can significantly reduce Africa's brain-drain and retain more of our valuable human capital within the continent. Furthermore, intra-African remittanc- es, which account for nearly one-fifth of the continent's total remittance flows, underscore the economic interconnec- tivity within Africa. These remittances, amounting to $20bn out of Africa's nearly $100bn in total flows, are lifelines that sustain families and businesses, reinforc- ing the economic bonds that are vital for the continent's growth. Yet, the drive for connectivity is con- stantly hindered by inadequate infra- structure. The logistical nightmare of travelling across Africa is a stark reminder of the continent's infrastructural deficiencies. A journey between Kigali and Luanda, which should take only three hours by direct flight, can currently take anywhere from nine to 20 hours due to the lack of direct routes. This inefficiency not only wastes time but also inflates costs, making intra- African travel 45% more expensive than in Europe. The average cost of sending money within Africa is about 1.3 times the global average. But here lies a paradox: despite these challenges, the desire for connectivity has fuelled significant growth in intra-Afri- can air travel. In many African countries, more than half of the air passenger traffic is now intra-continental, with African airlines carrying 67m passengers in 2022 alone – a 55.8% increase from the previ- ous year. Cross-border trade is another area where ordinary Africans are leading the charge. Informal cross-border trade ac- counts for a substantial portion of the continent's economic activity, represent- ing 7-15% of formal intra-African trade flows and a staggering 30-72% of formal trade between neighbouring countries, according to the United Nations Economic Commission for Africa (UNECA). The catalyst for continental growth The demand for intra-continental con- nectivity is clear, and the solution lies in strategic investments in cross-border infrastructure. Africa cannot afford to stumble into the next century with the infrastructure of the last; it needs bold, transformative projects that will reshape the continent's economic landscape. Imagine the potential of the Lagos[1]Abidjan expressway (crossing fi vecountries), the Lobito Corridor (crossing three countries), or the Kano-Maradi railway (connecting three Nigerian states with the city of Maradi in Niger), or even a transcontinental route from Mombasa to Dakar – these projects are not just roads and railways; they are the arteries of a connected Africa, ready to facilitate trade, movement, and economic growth. The Africa Finance Corporation's State of Africa's Infrastructure Report 2024 makes a compelling case for such investments. The report highlights the potential of building economic corridors that connect resource-rich regions with markets, thereby reducing transportation costs and time, boosting trade, and driving economic growth. The Grand Inga Dam, for instance, which has a capacity to generate 45GW of electricity – more than a third of Africa's current electricity production – could power the processing of critical minerals, with the Lobito 1 and 2 corridors transporting these resources efficiently across the continent. Imagine a West Africa where improved road networks and railways allow goods to flow seamlessly across borders, or an East or Southern Africa powered by a regional electricity grid that fuels industrial growth and elevates the quality of life for millions. These are more than just infra structure projects; they are investments in a prosperous African future. Building on continental initiatives Fortunately, Africa is not starting from scratch. Several continental and regional initiatives are already laying the ground- work for greater connectivity. The African Continental Free Trade Area (AfCFTA) is a bold step toward the free movement of people, goods, and services across the continent. This ambitious project, if fully realised, could transform Africa into a single market, unlocking unprecedented opportunities for trade and investment. The Africa Visa Openness Index is an- other positive development, showing sig- nificant progress in reducing the barriers to intra-African travel. In 2023, 50 African countries improved or maintained their scores on the index, with 42 countries offering visa-free entry to citizens from at least five other African countries. Kenya and Rwanda have taken this commitment a step further by offering visa-free access to all Africans, joining The Gambia, Sey- chelles, and Benin in setting a powerful example for the continent. These initiatives are a testament to what can be achieved when African coun- tries work together. But we cannot af- ford to be complacent. The momentum must be accelerated, and these efforts must be expanded and deepened. Regional economic communities like ECOWAS, SADC, and COMESA have also made modest but meaningful progress in facilitating connectivity and trade within their regions. These regional efforts, combined with the power of AfCFTA, can pave the way for a truly integrated Africa. The AfCFTA and the Visa Openness Index are just the beginning. To achieve a truly connected Africa, we need great- er regional cooperation, more ambitious infrastructure projects, and institutions that can drive the continent's integra- tion forward. Unlocking Africa's infrastructure potential The greatest hurdle to Africa's infra- structure development is not a lack of vision but a lack of capital. Africa's fi- nancial institutions are relatively small and underdeveloped, and the continent's capital reserves inadequate. This financing gap is a major obstacle to the continent's growth, but it is not insurmountable. To overcome this hurdle, we need to rethink our approach to financing. The first step is to build and strengthen large, local banks capable of financing major infrastructure projects. However, we must also ensure that all commercial banks across Africa are adequately capitalised, not just the top-tier institutions. Depending on the size of the econo- my and the addressable market, no bank should have capital of less than $100m equivalent in its local currency. In larger economies, banks should aim for a min- imum capital of $1bn, with a target of reaching $10bn. This capital could then be put to work in financing factories, power plants, roads, and ports across the con- tinent. By recapitalising Africa's top-tier banks, we can establish a robust finan- cial backbone to support the continent's development. We must also capitalise African Development Finance Institu- tions (DFIs) and Multilateral Development Banks (MDBs) from within Africa. These institutions have a proven track record in supporting infrastructure projects, and with additional capital, they could scale their efforts and attract even more in- vestment. But perhaps the most innovative so- lution lies in unlocking the potential of Africa's savings. Despite representing a significant pool of capital, these funds are often underutilised due to regulatory barriers and perceived risks. By providing de-risking tools – such as government guarantees – and offering regulatory support, we can enable sav- ings pools, like pension funds, to invest in regional infrastructure projects. This approach not only addresses the financing gap but ensures that Africa's development is fuelled by African capital. To increase the savings potential of African economies, we must focus on val- ue capture and retention strategies that create quality, higher-paying jobs. This, in turn, would enable governments to better fund schools and provide essential infrastructure. Pension funds and insurance com- panies are increasingly important in deepening capital markets in developing economies. In countries like South Africa and Nigeria, pension funds have begun to explore this potential. For instance, Nigeria has increased its pension funds' allocation to infrastructure financing from $6m to over $110m in less than a decade. National pension fund con- sortia, such as the Kenya Pension Funds Investment Consortium (KEPFIC), can pool resources and expertise to support local infrastructure investment. This model can be replicated across the continent, providing a powerful tool for financing Africa's infrastructure needs. Moreover, there is untapped po- tential in the shadow savings locked within Africa's sizeable informal sector. Africa has the highest level of economic informality in the world, lacking the credible institutions needed to incen- tivise formal savings on a large scale. Currently, most African savings are non-financial and informal, limiting their ability to support the structural economic transformation the continent urgently needs. To unlock financing for Africa's infrastructure, we must lever-age both formal and informal financial resources, creating a comprehensive, innovative approach that drives sus- tainable development from within. Action for Africa's future Africa's future depends on our ability to connect the continent. The demand for intra-continental connectivity is not just a trend; it's a movement driven by the aspirations of millions of Africans who are already finding ways to trade, learn, and migrate across borders. But to fully realise this potential, we need to invest in the infrastructure that will catalyse in- dustrialisation and connectivity in Africa. The challenges are significant, but they are not insurmountable. By investing in strategic infrastructure projects, build- ing on existing initiatives, and adopting innovative financing approaches, we can create a continent where borders are not barriers but gateways to opportunity. The time to act is now. Africa's future is in our hands, and we have the power to shape it. By coming together, investing in our people, and building the infrastruc- ture that will industrialise and connect our continent, we can create a brighter, more prosperous future for all Africans. The journey will not be easy, but the re- wards will be immense. Let us seize this moment and build a connected Africa that fulfils the dreams of its people. n © Copyright IC Publications 2022 Provided by SyndiGate Media Inc. (
Zawya
19-03-2025
- Entertainment
- Zawya
Africa Finance Corporation (AFC) Joins Ecobank and Soto Gallery for 2nd edition of the +234Art Fair to elevate African art and empower artists
Africa Finance Corporation (AFC) ( the leading infrastructure solutions provider in Africa, has announced its support for the +234Art Fair, coming on as partners for the second year in a row. This aligns with the Corporation's commitment to empowering and elevating the continent's youth, with more than 260 young artists expressing interest in exhibiting their works at the second edition of the international art fair, organized by Soto Gallery in collaboration with Ecobank Nigeria Limited, AFC and Craneburg Construction Company. This meticulously curated five-day event, titled "Championing Patronage in Nigerian Art," will feature the works of emerging and un-galleried artists. The fair will run from March 27th to March 31st at the Ecobank Pan African Centre, located at 270B1, Ozumba Mbadiwe Avenue, Victoria Island, starting daily at 10:00 AM. Samaila Zubairu, President&CEO of the Africa Finance Corporation, stated, 'The +234Art Fair aligns with AFC's advocacy strategy of empowering and elevating Africa's youthful population, thereby fostering job creation, skills development, value retention and rapid economic growth. We are proud to continue our collaboration with Ecobank to help drive Africa's creative industry forward by creating a catalyst for promoting African art and artists locally and on the global stage.' Bolaji Lawal, Managing Director and Regional Executive, Ecobank Nigeria, shared, 'As a Pan-African bank, this fair is an important initiative in our commitment to economic growth and investing in Africa's next generation of talent. It offers emerging artists a unique opportunity to showcase their works to key decision-makers, influencers, and a global audience.' Mrs. Tola Akerele, Founder of +234 Art Fair and Soto Gallery Foundation, emphasized, 'Patronage in the art world goes beyond financial support; it's about building relationships that allow artists to grow and sustain their creative practices. The 2025 edition of the +234 Art Fair aims to show how meaningful support can impact an artist's journey and the broader art ecosystem, fostering essential connections along the way.' The +234 Art Fair celebrates the dynamic talents of Nigeria's emerging artists, offering them a vital platform to share their work with a broader audience. Visitors will experience a wide range of artistic expressions, including painting, sculpture, visual and digital art, installations, and more. The fair will also feature interactive workshops, panel discussions, and networking opportunities for artists, art enthusiasts, and key stakeholders in the creative sector. The event is expected to draw a diverse group of attendees, including Nigerians, Africans, international residents, government officials, policymakers, diplomats, and global art lovers. Distributed by APO Group on behalf of Africa Finance Corporation (AFC). Media Enquiries: Yewande Thorpe Communications Africa Finance Corporation Mobile: +234 1 279 9654 Email: About AFC: AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments across Africa. AFC's approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa's infrastructure development needs and drive sustainable economic growth. Seventeen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 45 member countries and has invested over US$15 billion in 36 African countries since its inception.
