OPEC Fund Offers $50Mln Loan to Develop Critical Economic Infrastructure in Africa

In 2017, the OPEC Fund for International Development signed a cooperation agreement with Africa Finance Corporation (AFC), a pan-African infrastructure solutions provider with 39 member states, to support the AFC’s projects aimed at developing infrastructure in key economic sectors on the world’s fastest-growing continent.

The OPEC Fund for International Development and the Africa Finance Corporation (AFC) have signed a $50Mln loan agreement to finance the development of critical economic infrastructure throughout the African continent.

Due to be repaid in 10 years, the fund is expected to go to financing sectors that would improve Africa’s potential in critical industries for its further development, including telecommunications, transportation, logistics, trade, and energy access across the fast-growing continent.

“Africa continues to be a key region for the OPEC Fund, with more than 45 percent of our aggregate financing dedicated to the continent,” said OPEC Fund director-general Dr Abdulhamid Alkhalifa. “Sustainable infrastructure development is key to unlocking Africa’s vast potential and enabling it to fully utilize its resources.”

Alkhalifa added that cooperation with local partners in Africa, such as the AFC, helps to deepen “our impact and support Africa’s development agenda”.

The president and chief executive of the AFC, Samaila Zubairu, said that her organization and the OPEC Fund have a “long-standing partnership” in financing projects related to the development of critical infrastructure in Africa. In January 2021, in the wake of the COVID-19 pandemic, the partners signed a similar $50Mln loan agreement to support affected African economic sectors.

“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 financial institutions,” Zubairu pointed out.

Since its establishment in 2007, the AFC has invested more than $11Bln in projects aimed at providing solutions to shortfalls in infrastructure and environments which were hard to operate in throughout 36 African countries.