Egyptian Finance Minister Dr Mohamed Maait and AFC president and CEO Samaila Zubairu
Egypt has joined infrastructure investment institution the Africa Finance Corporation (AFC) as the first North African sovereign shareholder, serving to diversify the AFC’s expanding equity investor base.
As an AFC member State, Egypt’s equity commitment and its imminent representation on the AFC board of directors adds to AFC’s pan-African spread of shareholders, board and management, which now includes governments, development finance institutions and institutional investors.
Last year, the AFC onboarded Sierra Leone, the Democratic Republic of Congo, Côte d’Ivoire, South Africa’s Public Investment Corporation, as well as the pension funds of Mauritius and Seychelles, as shareholders.
Other sovereign shareholders include Ghana, Gabon, Togo and Guinea.
As the largest North African economy, it is hoped that Egypt’s investment will pave the way for other countries and investors from the region to join the AFC’s shareholder base as well, and to use its platform to boost regional trade and co-investment opportunities.
“This equity investment is a testament to our confidence in the AFC’s role as a trusted partner in delivering transformational impact in Egypt and overall in Africa . . . as we work together to develop the key infrastructure projects in the pipeline,” Egyptian Finance Minister Dr Mohamed Maait said on March 7.
The growing and diversified shareholder base, alongside profitable returns and consistent dividends, are behind the AFC’s A3 investment-grade credit rating, which the corporation leverages to fulfil its mandate to close Africa’s infrastructure and industrial financing gap.
The AFC has a membership of 39 countries and total cumulative investments of $11.5-billion over 16 years.
It focuses on developing and financing sustainable investments in the core sectors of power, natural resources, heavy industry, transport and telecommunications, with a strategy of adding value to exports and creating jobs through the development of industrial ecosystems.
The AFC has identified an immediate project pipeline worth more than $1-billion in critical infrastructure across key sectors in Egypt, including renewable energy, natural gas, heavy industries, technology, telecommunications, banking and finance.
This is in addition to $265-million worth of existing investments by the AFC in Egypt.
“We welcome Egypt as a highly valued member of our core shareholders, helping us to maximise the impact of investments in systemic solutions within Egypt and across the continent. We look forward to expanding our collaboration to elevate Egypt’s economy through delivering resilient infrastructure,” AFC president and CEO Samaila Zubairu said.