FinDev Canada, the Canadian government’s bilateral Development Finance Institution, has announced a USD 100 million loan to Africa Finance Corporation (AFC), one of Africa’s leading infrastructure solutions providers. The financing will support the development of sustainable infrastructure projects across Sub-Saharan Africa, with a focus on renewable energy and low-carbon transportation.
The facility will enable AFC to advance a pipeline of climate-aligned projects, including solar photovoltaic and wind power developments, that expand access to clean energy in the region. It will also help finance low-carbon railway infrastructure for an inter-urban metro project in the Democratic Republic of Congo. This initiative aims to enhance public transport, reduce greenhouse gas emissions, and stimulate economic growth by improving the movement of goods and people.
Africa’s rapid population growth presents both opportunities and challenges. While it offers the potential for a dynamic labor force and expanding consumer base, it also creates significant infrastructure needs to support sustainable economic progress. Currently, about 565 million people in Sub-Saharan Africa lack access to electricity, underscoring the urgency of scaling up investment in critical energy and transport infrastructure.
By extending this loan, FinDev Canada reinforces its commitment to supporting climate-resilient and inclusive development. The proceeds will strengthen AFC’s long-term funding capacity, allowing it to implement solutions that promote sustainable growth, enhance energy access, and address the impacts of climate change across the continent. “This transaction represents an opportunity for FinDev Canada to support a leading solutions provider financing critical infrastructure in Sub-Saharan Africa and an important step towards expanding our market presence in the region. We are proud to invest in an institution which aligns with our impact development goals, particularly market development and climate and nature action,” said Paulo Martelli, VP and Chief Investment Officer, FinDev Canada.
“We are delighted to partner with FinDev Canada on this milestone transaction. This partnership reflects our shared commitment to accelerating sustainable development across the continent through high-impact, climate-resilient infrastructure. The transaction not only diversifies AFC’s funding base but also deepens North America’s participation in Africa’s growth story. We look forward to building on this relationship to catalyse even greater investment flows into Africa’s infrastructure sector,” said Banji Fehintola, Executive Board Member & Head, Financial Services, Africa Finance Corporation.
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