Kenya becomes the 15th and third East African country after Uganda and Rwanda to join Africa Finance Corporation (AFC), the pan-African international investment grade multilateral finance institution that aims to bridge the continent’s infrastructure gap as it delivers competitive financial returns, robust economic growth and positive social impact.
Since inception in 2007, AFC has invested approximately $4 billion in projects in a wide range of sectors including power, telecommunications, transport and logistics, natural resources and heavy industries across 28 countries.
“I am very pleased to welcome Kenya to AFC. Kenya’s membership is a critical step to achieving our goal of developing high-quality infrastructure across the whole of Africa and driving positive economic growth on the continent,” said Andrew Alli, CEO of AFC.
AFC hopes to facilitate closer intra-regional trade links by improving Kenya’s infrastructure, the regional hub for East Africa whose pivotal geographical location is at the intersection between East and South Africa making it a commercial centre bridging two regions.
Alli said that this milestone that can only be achieved if the adequate transport, telecommunications networks and power supply are in place, an area where Kenya is already making significant progress following the recent launch of the standard gauge railway line which connects the Mombasa port to the capital Nairobi.
“We want to build on these pioneering developments and accelerate Kenya’s growth and we are excited by the challenges and opportunities that lie ahead,” he added.
AFC already has a large presence in Kenya; the country’s Dye & Blair Investment Bank is a founding shareholder of the Corporation.
Through its flagship joint venture with Harith General Partners, which combines both companies’ energy assets into one portfolio, AFC has a vested interest in Lake Turkana Wind Farm, which provides Kenya with 15 percent of its installed energy capacity.
The Corporation has invested $50 million in Nairobi-based ARM Cement, which engineers, builds and operates cement plants in one of its most significant investments in heavy industry, supporting the company’s expansion initiatives across Eastern and Southern Africa.
AFC provided a $25 million loan to Kenya Power in 2015 for the rehabilitation and expansion of Kenya’s power transmission and distribution network.
Kenya joins other AFC members Cape Verde; Chad; Côte d’Ivoire; Djibouti; Gabon; the Gambia; Ghana; Guinea-Bissau; Guinea; Liberia; Nigeria and Sierra-Leone.