Africa Finance Corporation, one of Africa’s biggest investors in infrastructure development, has delivered a 20% growth in total assets during the 2020 pandemic year.
AFC’s audited financial statements for 2020 calendar year show strong and continued growth, with total assets reaching US $7.36 billion on Dec. 31, compared with US$ 6.12 billion a year earlier. Amidst the tough economic climate, asset growth was largely driven by the robust pipeline of infrastructure opportunities, maturing project development initiatives and repeat business from clients seeking to capitalize on the opportunities from the disruption in the global supply chain to embark on import substitution projects and value accretive beneficiation of African resources.
Samaila Zubairu, President & CEO of AFC, said: “Achieving this financial performance during an unprecedented time of a global pandemic is testament to the Corporation’s resilience driven by our strong team of agile professionals and our vital role in Africa’s infrastructure and industrial development. We maintained the growth and profitability trajectory in our strategic plan with improved portfolio quality, a strong capital base, and a high liquidity position.
Our role becomes even more critical as we look ahead, especially at this time when African economies have begun the journey of recovery from the impact of COVID-19. AFC will continue to partner with African governments and sponsors to ensure sustainable development and production of the metals required for the energy transition. In addition, we will support projects that reduce carbon dioxide emissions with greater focus on the requisite energy infrastructure, renewable projects and the digital infrastructure that should enable Africa to build back better with more resilient and sustainable infrastructure.”
The Corporation continued to diversify funding and increased total borrowing 17% YoY to US$ 5.1 billion during this period. In addition to a US$700 million Reg S Eurobond in June 2020, the Corporation issued its inaugural CHF150 million Reg S Green Bond in September 2020 with significant oversubscription.
AFC also secured US$250 million tier-2 capital from the U.S. International Development Finance Corporation, boosting the Corporation’s capital, and enhancing its ability to create assets.
The Arab Bank for Economic Development in Africa and the Republic of Gabon became equity shareholders of Africa Finance Corporation in the financial year 2020, with equity injections of US$10 million and US$50 million, respectively.
Key milestones last year include an expanded investment footprint in Africa to 35 countries, growing the cumulative disbursements to US$8.7 billion (vs. US$7.2 billion a year earlier).
- US$2.08 billion total equity (2019: US$1.71 billion) ▲22%
- US$167.1 million net interest income (2019: US$162.6 million) ▲3%
- US$156.5 million in total comprehensive income (2019: US$164.5 million) ▼5%
- US$165.5 million profit for the year (2019: US$183.3 million) ▼10%
- US$2.40 billion liquidity position (2019: US$ 2.13 billion) ▲12%