#Canada #Montreal #Sub-Saharan Africa #FinDev Canada #Africa Finance Corporation

FinDev Canada Supports Sustainable Infrastructure in Africa

In a significant move to bolster sustainable development, FinDev Canada, the country's bilateral development finance institution, has approved a loan of $100 million to the Africa Finance Corporation (AFC). This funding aims to develop robust and sustainable infrastructure in Sub-Saharan Africa, addressing the critical needs of a rapidly growing population in the region.

Addressing Critical Infrastructure Needs

As the population in Africa continues to surge, the region's demand for essential infrastructure has reached unprecedented levels. Despite the immense potential, the lack of access to energy, water, and digital infrastructure has stifled economic growth, leaving approximately 565 million people without electricity. The partnership between FinDev Canada and AFC is aimed at closing these gaps through strategic investments.

Renewable Energy Initiatives

The loan will specifically target climate financing projects in Sub-Saharan Africa, emphasizing renewable energy sectors such as solar photovoltaic and wind energy. Additionally, the funding will facilitate the establishment of low-carbon railway infrastructures, particularly in urban areas of the Democratic Republic of Congo. This urban transit project aims not only to enhance collective transport but also to reduce emissions and stimulate economic growth through improved accessibility and mobility.

The Role of Private Investment

For Africa to achieve its sustainable development goals, substantial private investments are essential. The funds from this loan will enhance AFC's long-term financing capacity, allowing for the development of innovative solutions to combat climate change while addressing persistent infrastructure challenges.

According to Paulo Martelli, Vice President and Head of Investments at FinDev Canada, "This transaction exemplifies our commitment to support a significant provider of essential infrastructure financing solutions in Sub-Saharan Africa. It represents a key milestone in strengthening our presence in this regional market, aligning with our development impact objectives."

Strengthening North-South Collaboration

This partnership signifies a strategic collaboration between Africa and North America, emphasizing a shared commitment to sustainable and resilient infrastructure development on the African continent. Banji Fehintola, a member of the AFC’s board, expressed enthusiasm about the collaboration, stating, "We are thrilled to partner with FinDev Canada in this landmark transaction. It reflects our mutual commitment to accelerate sustainable development in Africa through impactful infrastructure that is resilient to climate change."

The AFC has a strong track record since its inception in 2007, having invested over $15 billion across 46 member countries, focusing on critical infrastructure that drives economic development.

Conclusion

The $100 million investment from FinDev Canada is a proactive step towards supporting sustainable infrastructure projects in Africa. It showcases the importance of international partnerships in addressing the continent's pressing needs and highlights the significant role that private sector investment can play in advancing sustainable development goals. As Africa continues to grow, partnerships like this are vital to unlocking its potential for long-term, inclusive economic growth.