Manufacturing and Energy

AFC partners with Nigeria’s Solid Minerals Development Fund to deploy funding and technical advisory for commercial scale mining projects in Nigeria

The Solid Minerals Development Fund (SMDF) and Africa Finance Corporation (AFC), the continent’s top provider of infrastructure solutions, are collaborating to deploy project development funding and technical advisory to hasten the closure and operations of commercial scale mining projects in Nigeria.

This comes after AFC’s flagship investment in Nigeria’s Segilola Gold Mine, the nation’s first large-scale gold mining project, through an inventive financing scheme that included loan, equity, and a stream.

According to SMDF, just a small portion of the more than US$700 billion worth of potential mining projects in Nigeria acquire the required investment. AFC and SMDF will jointly develop mining projects under the terms of the Memorandum of Understanding (MoU), drawing on AFC’s experience in project development, in order to reduce risks that might otherwise have blocked funding and increased bankability.

With the help of this intervention, AFC and SMDF will have access to a pipeline of excellent projects that are both doable and likely to have a large economic impact.

Since 2014, AFC has invested more than US$900 million from its balance sheet and mobilized US$250 million for mining projects across Africa, including bauxite, manganese, and copper. These minerals are essential for the energy shift. Due to their importance to the transition to a global energy system, precious metals and minerals will be the alliance’s primary areas of attention.

To lower the risks associated with exploration, drilling, deposit confirmation, and third-party development expenditures, including technical and environmental studies, project structuring, and contract negotiations, AFC and SMDF will combine their own money with cutting-edge investing technologies. Projects can only be taken into consideration if all necessary government and regulatory approvals have been obtained and pre-feasibility study phases have been successfully completed.

The collaboration supports AFC’s goals to promote industrial growth, maximize the value of natural resources, and spark major long-term expansion and diversification potential. Additionally, it advances SMDF’s 2025 Strategy, which calls for the creation of investment alliances to encourage private sector-driven investment in the mining industry and establish Nigeria as a premier growing mining hub.

AFC is a notable investor in Nigeria’s mining industry, which the Federal Government has prioritized as a means of luring foreign direct investment and promoting economic diversification. The Corporation will be able to continue driving the closure of bankable mining projects thanks to this partnership with the SMDF, which is essential to Africa’s efforts to diversify its economy, add value, and transition to a more sustainable energy source “the Africa Finance Corporation’s Executive Director and Chief Investment Officer, Sameh Shenouda. “We are honored to collaborate with a prestigious institution, especially one in Nigeria, our host nation.

Solid Minerals Development Fund’s CEO and Executive Secretary, Fatima Umaru Shinkafi, stated: “We are pleased to sign this agreement with the Africa Finance Corporation today, demonstrating AFC’s commitment to promoting sustainable economic growth through industrialization and economic diversification. This deal is a big milestone for SMDF as we grow the mining industry in Nigeria and establish it as a reliable and affordable source of essential minerals. The only commercial mine in Nigeria was financed in part by Africa Finance Corporation, so it only makes sense that we see a significant opportunity to combine the AFC’s track record of successful investments with the SMDF’s technical talent, intellectual capital, and in-depth industry knowledge and expertise on growth-oriented projects where our partnership can add value.

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