Djibouti has become the newest member of Africa Finance Corporation (AFC), an international investment grade multilateral finance institution investing in key infrastructure projects across Africa. The strategic maritime gateway becomes the fourteenth member of AFC and is the third east African country to join.
Mr Ali Guelleh Aboubaker, Minister of Investments in the Office of the President, commented on his country’s membership of AFC: “I am delighted to announce that Djibouti has become a member of Africa Finance Corporation, an international DFI with a proven track record in large-scale infrastructure investment. The government of Djibouti is committed to proactively investing in essential infrastructure to drive economic growth and doing what we can to attract international private investors to infrastructure investment opportunities. We look forward to working with AFC to deliver projects with real and positive economic and social impact across the country.”
Andrew Alli, President & CEO of Africa Finance Corporation, welcomed Djibouti to the Corporation: “Djibouti is a small but important market, with natural strengths as a transport and logistics hub thanks to the government’s successful free trade policies and its location at the gateway to the Red Sea. Djibouti offers some great investment opportunities and AFC is delighted to be assisting Djibouti to meet its full growth potential and to create jobs for its citizens.”
Djibouti is the 14th country and the third east African country to join the AFC. The Corporation’s other members are: Cape Verde; Chad; Ghana; Guinea-Bissau; Guinea; Liberia; Nigeria; Sierra-Leone, The Gambia, Gabon, Côte d’Ivoire, Rwanda, and Uganda. As with all other members, Djibouti’s membership enables AFC to receive preferred creditor status within the country, the benefits of which reduce AFC’s investment risk, enabling the Corporation to provide more competitive financing solutions.
AFC, an international investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$1.1 billion, to be the catalyst for private sector infrastructure investment across Africa. With a current balance sheet size of approximately US$3.2 billion, AFC is now the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service. In May 2015, AFC successfully concluded a debut US$750 million Eurobond issue under its US$3 Billion Global Medium Term Note Programme (GMTN) which was 7 times oversubscribed and attracted investors from Asia, Europe and the USA.
AFC’s investment 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.
AFC invests in high quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications.