OPEC Fund for International Development (OPEC Fund) and Africa Finance Corporation (AFC) have signed a US$50 million loan agreement to finance infrastructure development across the continent. Through the 10-year loan, connectivity, transport, logistics, trade, and energy access will be improved across Africa.
Following a US$50 million 10-year loan in January 2021, the loan doubles the OPEC Fund’s commitment to AFC and builds on a cooperation agreement signed in 2017. SDG 9 – Innovation and infrastructure – and SDG 17 – Partnerships – of the United Nations are aligned with the loan.
In the aftermath of the COVID-19 pandemic, global supply chain disruptions and rising costs have slowed Africa’s economic growth. It aims to increase access to infrastructure financing through OPEC Fund and AFC collaboration.
An international financial institution with 39 member countries, the AFC provides financing and private sector-driven solutions for infrastructure in key sectors such as power, transportation, heavy industry, telecommunications, and natural resources. Over US$11 billion has been invested in 36 African countries by AFC.