AFC secures €250m loan from Italy to fund infrastructure and renewable energy
Africa Finance Corporation (AFC) (www.AfricaFC.org), recognized as the foremost provider of infrastructure solutions on the continent, has successfully obtained a significant EUR 250 million 10-year term loan facility from Cassa Depositi e Prestiti (CDP), the Italian Financial Institution for Development Cooperation. This transaction is supported by a guarantee from SACE, the Italian insurance and financial group that is entirely owned by the Italian Ministry of Economy and Finance, which covers up to 80% of the total facility amount.
The financing is a continuation of discussions held during the Mattei Plan-Global Gateway summit, which was attended by Italian Prime Minister Giorgia Meloni, European Commission President Ursula Von der Leyen, along with representatives from CDP, SACE, and AFC, where the involved parties reaffirmed their commitment to collaboration. The facility is designed to promote opportunities within the Italian supply chain in the areas of infrastructure and renewable energy generation, including the provision of components for the Lobito Railway Corridor – a commercial railway line that will traverse Angola and extend to the borders of Zambia and the Democratic Republic of Congo.
This long-term facility enhances AFC’s strategic partnership with both CDP and SACE, while also reinforcing its mission to mobilize high-quality, long-tenor capital aimed at supporting the development of sustainable infrastructure throughout Africa.
“Cassa Depositi e Prestiti reaffirms its position as a strategic partner in facilitating infrastructure projects that have a significant social and economic impact in Africa. With this financing – stated Dario Scannapieco, Chief Executive Officer of CDP – we are fortifying business and technological connections between Italy and Africa, while promoting talent and innovation. We believe that investing in strategic projects not only generates new opportunities for our companies but also contributes to the establishment of enduring and mutually beneficial relationships that can drive growth and well-being for local communities.”
“We take pride in facilitating the engagement of Italian firms in the transport and logistics industry to implement a major strategic initiative such as the Lobito Railway Corridor under the Mattei Plan,” stated Alessandra Ricci, CEO of SACE. “This partnership reinforces SACE’s dedication to fostering new connections for Italian businesses aiming to diversify their exports and seize new growth prospects.”
“Our collaboration with CDP, further enhanced by SACE’s guarantee, illustrates the effectiveness of blended finance in mobilizing capital for infrastructure advancement in Africa,” remarked Banji Fehintola, Executive Board Member and Head of Financial Services at AFC. “The Lobito Corridor represents a transformative initiative that will establish new trade routes for resources, promote regional industrialization, expedite job creation, and bolster Africa’s role in global value chains, all while ensuring sustainable and inclusive growth.”
