- The Italian development finance institution Cassa Depositi e Prestiti (CDP) has granted AFC a €100 million loan.
- AFC will use the funds to finance the green transition through sustainable infrastructure in Africa.
- Italy is financing Africa’s ecological transformation
The Africa Finance Corporation (AFC), a pan-African multilateral development finance agency based in Lagos, Nigeria, is set to receive a €100 million loan from its development finance company Cassa Depositi e Prestiti (CDP). This funding aims to aid Africa’s development of green infrastructure.
AFC is relying on the CDP loan to support investments in climate resilient, energy efficient, and renewable infrastructure. The financial organisation is boosting its investments in renewable energy, facilitating the energy transition in some nations and significantly enhancing access to electricity in others.
According to Samaila Zubairu, AFC’s Chief Executive Officer, “Access to financing from highly rated institutions such as CDP helps us continue our commitment to investing in projects that simultaneously combat climate change and develop the critical infrastructure needed for Africa’s economic growth while offering reliable and competitive returns to investors.
With the financing to AFC, CDP joins other development finance organizations assisting Africa’s transformation to a green economy amid conflicts over spheres of influence on the diplomatic and financial fronts. Japan intends to enhance its African investments by targeting vital energy, water, and transportation industries.