Telecoms, power, logistics sectors get $4b AFC investment
Nigeria and 27 other African countries got an investment of $4 billion last year from the African Finance Corporation (AFC) in its core sectors including power, telecommunications, transport and logistics, natural resources and heavy industries.
AFC announced this yesterday, while unveiling the corporation’s financial performance for 2016. The corporation, which claimed to have grown its income by 64 per cent to $115.3 million in year-on-year (YoY), said it recorded $109.4 million in net profit, up by 51 per cent YoY basis.
AFC also grew its total asset by 13 per cent to $3.4 billion in the fiscal year. It had $1.4 billion in Total Equity, up six per cent YoY basis. The corporation said it expanded its operational footprint to 28 countries and 14 country members with expansion to the Horn of Africa (Djibouti).
The President and Chief Executive Officer of AFC, Andrew Alli, said 2016 has been a successful year for AFC, reflected by “our income and profit growth and our balance sheet strength. Operationally, we’ve had a great year too, with investments including Gabon’s Special Economic Zone, paving the way for greater economic diversification in the country. We’ve also strengthened our relationships with development finance institutions and the private sector – for example by launching a Joint Venture with Harith – merging power assets to create a pioneering African Power Platform Vehicle.”
According to him, AFC, established in 2007 to be the catalyst for private sector infrastructure investment across Africa, aimed to be a $5 billion corporation by 2019 and despite a challenging economic environment. “We are confident that we have built the firm foundations necessary to continue delivering positive socio-economic change across Africa. Ahead of our 10 year anniversary in May, we look forward to the next chapter in AFC’s growth story.”
He said AFC’s mission is to address Africa’s pressing infrastructure needs and build the foundations for robust economic development across the continent, while seeking a competitive return on investment for its shareholders.
Parts of the growth, according to a statement by the Corporation, include that it achieved a $688 million of new investments: grew its balance sheet to $3.4 billion and the prioritisation of investing in projects in sectors crucial for stimulating strong economic growth.
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