AFC secures $100 million India loan as Africa infrastructure funding race intensifies

Africa Finance Corporation (AFC) has secured a fresh $100 million five-year loan from the Export-Import Bank of India, giving the continent’s leading infrastructure financier new firepower to back projects across Africa at a time global funding conditions remain tight.

• Africa Finance Corporation has secured a $100 million five-year loan from India Exim Bank to fund projects across the continent.
• The deal comes as African borrowers face tighter global capital markets and higher borrowing costs.
• India is expanding its financial footprint in Africa through strategic lending and trade partnerships.
• AFC’s latest funding boost could help close Africa’s massive infrastructure financing gap.

The facility, signed during AFC’s Investor Day in London, adds medium-term liquidity to the Lagos-based institution as many African borrowers continue to face elevated interest rates, weaker currencies and cautious international investors.

The deal also highlights India’s growing financial and commercial interest in Africa, where demand for roads, ports, power plants, rail lines, digital networks and industrial facilities continues to outpace available capital.

AFC said the funding would support its mandate to develop critical infrastructure and industrial assets across the continent.

“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, AFC executive board member and head of financial services.

He added that access to diversified and long-term capital remains essential for transformative projects and Africa’s industrialisation.

The latest financing follows a previous $100 million facility arranged between both institutions in 2021, showing a deepening relationship between AFC and India Exim Bank.

Why the deal matters

Africa faces one of the world’s largest infrastructure funding gaps. The African Development Bank has previously estimated the continent needs between $130 billion and $170 billion annually for infrastructure, with a financing shortfall of up to $108 billion each year.

That gap has widened in recent years as global rates rose sharply, making it more expensive for many African governments and companies to borrow in international markets.

This has increased the importance of development finance institutions such as AFC, which can mobilise capital faster and structure long-term deals for power, transport, logistics and industry.

For AFC, the India facility provides another source of funding beyond bond markets and Western lenders, helping it diversify financing partners.

India’s bigger Africa push

India has steadily expanded trade and investment links with Africa, competing for influence alongside China, Europe, the Gulf states and the United States.

Indian companies are already active across Africa in pharmaceuticals, agriculture, technology, manufacturing, mining and energy. Export credit from institutions such as India Exim Bank has become an increasingly important tool in supporting that expansion.

For African economies, deeper ties with India offer an alternative pool of capital and expertise as countries seek faster industrial growth.

AFC’s expanding role

Founded in 2007, AFC has become one of Africa’s most active project financiers, investing in sectors including energy, transport, natural resources, telecoms and heavy industry.

The corporation has backed landmark projects across the continent, including power generation, rail infrastructure, ports, gas processing and renewable energy assets.

Its latest funding deal suggests investor appetite remains for well-structured African infrastructure plays despite global uncertainty.

For Africa, where infrastructure shortages continue to slow trade and economic growth, access to long-term money may prove as valuable as the projects themselves.