Through a $50 million loan, the Africa Finance Corporation and the OPEC Fund for International Development are working together to safeguard the future of African infrastructure.
The loan doubles the initial $50 million commitment made by the OPEC Fund to the AFC in January 2021 and will aid in improving connectivity, transport, logistics, trade, and access to energy throughout Africa.
The Director-General of the OPEC Fund, Dr Abdulhamid Alkhalifa, spoke about the significance of sustainable infrastructure development and emphasised how important it is to fully utilise Africa’s resources and realise its full potential.
To further their impact and aid in Africa’s development, he also emphasised the importance of cooperating with regional organisations like the AFC.
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AFC President and CEO, Samaila Zubairu, also expressed his delight at the collaboration between the two institutions and the opportunities it presents for developing critical infrastructure in Africa. He acknowledged that both developed and developing nations face challenges brought on by the global pandemic, and believes these challenges can only be solved through partnerships and engagement between leading finance institutions.
The COVID-19 pandemic has led to supply chain disruptions, rising costs and slower economic growth in Africa, widening the continent’s infrastructure funding gap.
The collaboration between the OPEC Fund and AFC aims to increase access to long-term sustainable finance for infrastructure projects, aligning with the United Nations Sustainable Development Goals 9 (Innovation and Infrastructure) and 17 (Partnerships).
As a multilateral financial institution with 39 member countries, AFC has invested over $11 billion in projects across 36 African countries.
The organization is dedicated to providing financing and private sector-driven solutions for infrastructure in key sectors such as power, transport, heavy industries, telecommunications, and natural resources.
This story was adapted from The Guardian.
