Africa Finance Corporation (AFC) has signed an Agreement with Volta River Authority (VRA) to provide a US$ 50 million loan tranche in a syndicated US$150MM three year loan facility arranged by Ecobank Capital, for the Volta River Authority (VRA) of Ghana.
VRA, which was established in 1961, is the principal source of power generation in Ghana generating its electricity principally from hydro and thermal sources. Mr. Kweku Awotwi – Chief Executive Officer, VRA said today “I am delighted that we have been able to successfully complete this headline transaction with key African Investors. The facility will enable VRA procure Light Crude Oil on an uninterrupted basis for power generation thus helping ensure the availability of electricity supply to the country. The transaction demonstrates the value of South-south cooperation and highlights the growing important and critical role of AFC in infrastructure investments across Africa.”
AFC is an African-led multilateral financial institution, established in 2007 whose mission is to improve African economies by proactively developing and financing infrastructure, industrial and financial assets. AFC is involved as an investor, developer and financier of various infrastructure projects. Currently in its fifth year of operation, AFC is playing a major role in helping to bridge the Continent’s critical infrastructure investment gap. It has not only emerged as a benchmark financier of infrastructure projects across Africa, but also as a key partner in attracting new financing to Africa.
AFC’s objective is to help ease the power deficit in Ghana, reduce the cost of electricity and thereby assist and support the Government of Ghana in realizing its vision to accelerate Ghana’s economic development. Commenting on AFC’s role, Andrew Alli, President and CEO of AFC said “As a pan-African multilateral financing institution, we are committed to helping Africa bridge the power infrastructure development gap and operational requirements to drive economic growth. We are delighted that this facility is for an African institution with which AFC collaborates closely. The transaction further demonstrates the increasing financial capacity within the continent, and the ability of intra African partnerships to drive economic development and help transform Africa”.