#Canada #Montreal #sustainable infrastructure #FinDev Canada #Africa Finance Corporation

FinDev Canada Bolsters African Infrastructure with $100 Million Loan

In a significant move towards enhancing sustainable infrastructure across Sub-Saharan Africa, FinDev Canada, the bilateral Development Finance Institution of Canada, has pledged a remarkable USD 100 million loan to the Africa Finance Corporation (AFC). This investment aims to support a series of critical infrastructure projects that address pressing needs in the region, particularly in terms of climate resilience and energy access.

Advancing Climate Finance Projects

The funds will be directed towards facilitating climate finance initiatives, including innovative projects focused on solar photovoltaic (PV) systems and wind power generation. These renewable energy solutions are crucial for increasing electricity access in a region where approximately 565 million people remain without power. Additionally, the investment will aid in developing low-carbon railway infrastructure designed for an inter-urban metro transportation project in the Democratic Republic of Congo (DRC). This metro system is expected to enhance public transport services, lower emissions, and stimulate economic growth by ensuring the smooth flow of goods and people within cities.

Addressing Infrastructure Gaps

Africa is witnessing rapid population growth, which presents unique opportunities for creating a vibrant consumer market and bolstering the labor force. However, this demographic expansion is also highlighting serious gaps in essential infrastructure such as energy, water supply, and digital technology. The disproportion between the urgent infrastructural needs and the available investments has hampered progress towards achieving sustainable development goals in the region.

FinDev Canada's funding is a crucial step towards bridging these gaps. By injecting capital into private sector initiatives like AFC, the goal is to catalyze substantial investments necessary for constructing resilient infrastructure that supports ongoing economic development and adapts to climate change challenges.

The Impact of the Partnership

Paulo Martelli, FinDev Canada's VP and Chief Investment Officer, expressed pride in this strategic partnership with AFC. He emphasized the transaction's importance, stating that it exemplifies FinDev Canada's commitment to supporting a leading solutions provider in Sub-Saharan Africa. He noted that this investment aligns with broader goals of promoting sustainable development and fostering climate action.

Moreover, Banji Fehintola, Executive Board Member of AFC, echoed the significance of this collaboration. According to him, this partnership not only diversifies AFC's funding sources but also enhances North America's involvement in Africa's growth narrative. The ultimate aim is to foster increased investment flows into Africa's infrastructure sector, thereby accelerating overall development.

About FinDev Canada

FinDev Canada plays a pivotal role in promoting development by providing essential financing and technical assistance to improve inclusive growth in emerging markets. The institution focuses on aligning its operations with the Sustainable Development Goals (SDGs) and commitments made under the Paris Agreement. More information about their operations can be found at www.findevcanada.ca.

About Africa Finance Corporation

Established in 2007, the AFC has made significant strides in facilitating industrial and infrastructure investments throughout Africa. The corporation has developed a robust reputation as a trusted partner in delivering high-quality infrastructure assets, having invested over USD 15 billion since its inception.

By engaging with global financial entities like FinDev Canada, AFC aims to fulfill Africa's extensive infrastructural needs while driving sustainable economic growth across the continent in the years to come.

This investment marking a new era of collaboration can significantly change the developmental landscape, ultimately empowering economies and communities in Sub-Saharan Africa to thrive sustainably.