Islamic Finance: AFC receives $50m for project financing in Africa
The line of credit will finance infrastructure projects across IDB member countries.The Africa Finance Corporation (AFC) has received a $50 million (€43.5 million) line of credit from the Islamic Development Bank (IDB) to finance projects across African IDB member countries.
According to the press release, the projects will be structured in a way that is compliant with Islamic Finance, focusing particularly on infrastructural and agricultural projects that promote the economic and social development of the communities concerned.
"As AFC’s first Islamic Finance loan, this agreement represents an important step for the corporation.
The Islamic finance sector is responding to high demand and rapidly expanding, with a large number of Islamic finance institutions establishing operations here as a result of Africa’s significant Muslim population. There is enormous growth potential within this industry," said
AFC chief executive officer Andrew Alli.
The AFC is a multilateral finance institution established in 2007 aiming to be the catalyst for private sector infrastructure investment across Africa.
It focuses on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.