The Africa Finance Corporation (AFC), Africa’s leading infrastructure multilateral development finance institution, made a net profit of $100.3 million for the year 2017.
Commenting on the firm’s financial year results this week, Andrew Alli, AFC President and CEO, stated that 2017 had seen a “robust performance in the face of challenging conditions.”
He noted that despite a year marked by fiscal challenges, fewer bankable projects, and a market-wide reduction in terms of investment, AFC delivered strong underlying results, as the above numbers show.
The AFC also made major milestones in the run up to the announcement. The organization, for instance, welcomed three new member states in 2017, which included Kenya, Zambiaand Benin, with Malawi joining in 2018. The Corporation now has a total of 18 Member States.
At the same time, the group inaugurated two ports built in record time by the Gabon Special Economic Zone, an AFC investee company. The port, located at Owendo, will enable the diversification of the Gabonese economy.
The AFC also became the first African multilateral finance institution to issue a Sukuk bond, an Islamic bond, structured in such a way as to generate returns to investors without infringing on Islamic law.
The bond is the highest rated by an African supranational entity.
“Operationally, AFC also maintained its momentum, welcoming Kenya, Zambia and Benin as new member states, pioneering innovative funding instruments such as our oversubscribed Sukuk, and continuing to enable numerous successful infrastructure projects that will transform the economies we invest in,” Alli added.
“AFC marked its tenth anniversary in 2017, coinciding with my last year as President and CEO,” said Alli.
“I am proud to report that over the last decade, AFC has evolved from a start-up to a powerful force on the continent that is at the forefront of addressing Africa’s infrastructure deficit. We have demonstrated that Africa Infrastructure is a viable asset class and that investors can contribute to long- term sustainable growth of the continent in a way that generates strong returns,” he continued.
In its first decade, AFC has grown profit from $4.4 million to US$100.3 million, an approximate 20-fold increase, paid aggregate dividends of $304.4 million to its shareholders and elevated the Corporation to the second-best rated lending institution in Africa.
“With the balance sheet and track record in place to deliver the infrastructure financing that will help Africa to fulfil its potential, AFC is well placed for its next decade of growth, to the benefit for all its stakeholders,” Alli explained.
AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of $1 billion, to be the catalyst for private sector-led infrastructure investment across Africa.
With a current balance sheet size of approximately $3.5 billion, the organization is the second highest investment grade rated multilateral financial institution in Africa