Yemisi Izuora
The Africa Finance Corporation AFC, has disclosed that the African Development Bank Group (“AfDB”), has invested $50 million in the equity of AFC.
The AfDB’s investment in AFC will enable both institutions to accelerate infrastructure development and delivery on the continent by deepening co-financing opportunities, joint implementation, knowledge transfer and capacity development for the benefit of Africa.
The addition of AfDB as a shareholder and DFI member of AFC complements AFC’s strategy of addressing Africa’s infrastructure deficit with AfDB’s stated mission to help reduce poverty, improve living conditions for Africans and mobilise resources for the continent’s economic and social development.
The equity investment in AFC further broadens AFC’s shareholder base, and follows recent equity investments in AFC from African Re-Insurance Corporation and the Republic of Ghana. As part of the equity investment, AfDB will have representation on the AFC Board of Directors. The Corporation currently has twenty-five shareholders. In accordance with the terms of its Charter, private sector investors currently own about 54.7 per cent of AFC’s share capital while the public sector holds 45.3 per cent. The Central Bank of Nigeria is the largest shareholder with an interest of 44.8 per cent; while other notable public sector and multilateral shareholders include the Republic of Ghana and the Africa Reinsurance Corporation. As of 31 December 2018, AFC’s authorised share capital consisted of $2.0 billion of ordinary shares, out of which $1.1 billion was called up, issued, fully paid, and are not subject to calls for additional payments of any kind.
The minimum amount of subscription for AFC shares is 50,000 units of shares. There is only one class of shareholder. The rights and obligations of AFC’s shareholders are as stipulated in the AFC Establishment Agreement and AFC Charter. All AFC shareholders have the same rights, including entitlement to attend General Meetings, vote, and receive dividend payments based on their pro-rata shareholding. Shareholders who subscribe and pay for at least 50 million shares are entitled to nominate a Director, through the Board Nomination and Governance Committee (BNGC), on to the Board of Directors.
Samaila Zubairu, President & CEO of AFC, commented on the completion of the equity investment by AfDB: “AFC welcomes AfDB as a shareholder and strategic partner, with whom we would continue our collaboration journey to address Africa’s Infrastructure deficit and challenging business environment. AFC’s mandate is a strategic fit for AfDB’s objective to integrate, energise and industrialise Africa.”Dr. Akinwumi Adesina, President of AfDB also commented on the announcement: “AfDB shares AFC’s vision of developing Africa-led responses to the Continent’s socio-economic development. To date, we have already worked jointly to deliver transformational projects with tangible impact over the years.”In becoming a shareholder, this development is therefore a natural evolution in our partnership, which in turn will result in delivering solutions to Africa’s infrastructure challenges at a faster pace. These solutions will adopt the highest standards, generate value to stakeholders, and foster sustainable development and economic growth across the African continent.