Begna Gebreyes, the Senior Vice President of Africa Finance Corporation (AFC) said the financial institution is about to sign a $100 million investment deal in Nigeria’s mining sector.
Gebreyes, who said the AFC has been a big supporter of the country’s mining sector, noted that about half of the planned investment into the mining sector is coming by way of debt, equity, and off-take instruments.
According to the senior Vice President, “AFC is a very big supporter of the Nigerian mining sector from inception. We want to support the Nigerian mining sector from inception. In the last four and half years, we have started making investments throughout the continent, and we’re actively seeking to make investments in Nigeria.”
He acknowledged the institution was about to wrap up an investment deal in Nigeria. Gebreyes said “we’re very close. We are in a transaction which will be concluded before the end of the year.”
Despite the country being blessed with over 44 types of solid minerals in varying quantities across the 36 states and Federal Capital Territory ( FCT), the contribution of mineral resources to the nation’s Gross Domestic Product (GDP) was low, hovering within the region of 103 billion naira in 2014.
The Africa Finance Corporation, which is a pan-African multilateral development finance institution founded in 2007, was established to bridge Africa’s infrastructure investment gap through the provision of debt and equity finance, project development, technical and financial advisory services.
The institution finances infrastructure projects in Africa, focusing in particular on power, transportation, telecommunications, heavy industry and natural resources (oil, gas and mining).