AFC secures $100 million India Exim Bank loan for African projects

Africa Finance Corporation, a multilateral development financial institution, has secured a five-year $100 million loan facility from Export-Import Bank of India, strengthening its funding base as it accelerates investment in critical infrastructure and industrial projects across the continent.

The agreement, signed during AFC’s Investor Day in London, highlights a deliberate shift toward alternative liquidity sources beyond traditional capital markets, as global financial conditions remain tight. The proceeds will support high-impact assets spanning transport networks, energy systems, and industrial platforms across Africa.

Diversifying funding sources

AFC said the facility extends its funding tenor while improving access to cost-efficient capital from export credit institutions, an increasingly important channel for development financiers navigating volatile investor sentiment.

The transaction also signals a broader pivot among African development finance institutions toward non-Western lenders, particularly in Asia, as they seek to bridge the continent’s infrastructure financing gap, estimated in the tens of billions of dollars annually.

“This facility is an important milestone in our long-standing partnership with India Exim Bank and reflects our shared commitment to advancing infrastructure development across Africa,” said Banji Fehintola, Executive Board Member and Head of Financial Services at AFC.

AFC’s expanding continental footprint

Established in 2007, Africa Finance Corporation is a multilateral development financial institution focused on closing Africa’s infrastructure deficit while driving economic growth and industrialization.

With 48 member countries, AFC provides project development, financing, and advisory services, and has invested more than $10 billion across 36 countries in sectors including power, transport, and natural resources.

The institution operates across three core pillars, project development, financial advisory, and principal investing, while also delivering end-to-end project management to ensure execution from inception to completion.

Green finance momentum builds

In a recent milestone, AFC disbursed €43 million ($50.6 million) under the Poro Power Green Bond, the first project finance green bond in Côte d’Ivoire and across the West African Economic and Monetary Union. The transaction underscores AFC’s growing role in mobilizing climate-aligned capital into African energy systems.

Positioning for long-term growth

With the latest India Exim Bank facility, AFC further cements its role as a critical intermediary channeling global capital into Africa’s infrastructure pipeline.

Even as macroeconomic headwinds continue to test access to affordable financing, the institution’s strategy of diversifying funding sources and deepening partnerships with emerging-market lenders positions it to sustain deal flow and scale impact across the continent.