The Republic of Ghana (“Ghana”) has marked its 7th anniversary as a Member State of Africa Finance Corporation (“AFC” or “the Corporation”) by becoming a sovereign shareholder in the Corporation, making an initial equity investment of US$10 million.
The Government of Ghana has also committed to invest a further US$40 million in the Corporation; representing the second tranche of its U$50 million commitment to purchase AFC equity. Ghana has been a Member State of AFC since February 2011.
Investments in the equity of AFC can be made by its Member States, by international organizations, as well as by private sector corporations.
Andrew Alli, President and Chief Executive Officer of AFC commented: “This investment not only strengthens the partnership between AFC and Ghana, it also serves as an acknowledgement of AFC’s efforts thus far in the development and financing of infrastructure in Africa and acts as an incentive for AFC’s continued commitment to infrastructure development in Ghana”.
Hon. Charles Adu Boahen, Deputy Minister of Finance of Ghana, also commented: “AFC remains an infrastructure development partner of choice for the Government of Ghana. The Corporation has proven its commitment to the socio-economic development of the country, in particular; in addition to its growing presence across the continent and stands as a beacon of Corporate Pan-Africanism. Ghana strongly encourages other African nations to invest in AFC to enhance the fulfillment of her mandate, to facilitate the continuous delivery of sustainable infrastructure assets and projects in the countries and the respective regions.”
Over the past 10 years, AFC has mobilized more than US$1.2 billion of investments into Ghana. Notable investments made by AFC in Ghana include:
* The US$900 million to finance the 350MW Cenpower Kpone Independent Power Plant which has created direct employment for over 1,550 Ghanaians during construction, and is scheduled for commissioning in Q2 2018. AFC is the lead developer of this project and the largest shareholder in the development company – Cenpower;
* The provision of US$60 million to Volta River Authority (VRA) to finance the completion of the 220MW Kpone Thermal Power Plant and the conversion to gas of the 80MW Mine Reserve Plant in Tema, to help address electricity shortages in Ghana;
* The provision of a corporate loan of US$60 million to VRA to finance its operations;
* The provision of US$50 million as part of the US$400 million syndicated facility to Ghana Airport Company Limited for the expansion of Kotoka International Airport and other airports in Ghana;
* The US$50 million promissory notes funding for the construction of Regional Hospitals (Euroget);
* The provision of US$50 million in financing of the Jubilee Oil Field development;
* The provision of a loan for the project development of the Atuabo Freeport; and
* The provision of trade finance primarily for oil importation.
AFC is also the largest shareholder in the US$240 million Main One Fibre-Optic Cable Project which enhances Ghana’s connectivity to the rest of the world through faster and more technologically advanced broadband capacity. Given the Corporation’s track record in Ghana, AFC was also awarded a mandate by the West Africa Power Pool (WAPP) to develop another major 450MW Power Plant in the Western Region of Ghana.
AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$1 billion, to be the catalyst for private sector-led infrastructure investment across Africa.
With a current balance sheet size of approximately US$3.5 billion, AFC is the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service.
AFC raised US$750 million in 2015 and US$500 million in 2017; out of its Board-approved US$3 Billion Global Medium Term Note (MTN) Programme. Both Eurobond issues were oversubscribed and attracted investors from Asia, Europe and the USA.