How BoT joins AFC as equity shareholder

DAR ES SALAAM: AFRICA Finance Corporation (AFC), the continent’s leading infrastructure solutions provider has announced that the Bank of Tanzania (BoT) has made an equity investment in the Corporation, becoming a sovereign shareholder and further strengthening AFC’s diversified capital base and Pan-African ownership structure.

The investment reflects growing sovereign confidence in AFC’s mandate to mobilise long-term capital for critical infrastructure and industrial development projects across Africa.

It also reinforces the Corporation’s strong institutional positioning following its recent A (Positive Outlook) credit rating from S&P Global Ratings, which highlighted AFC’s robust capital structure, strong shareholder support, and consistent track record of delivering transformational projects across the continent.

AFC says the addition of the BoT further enhances AFC’s shareholder diversification strategy, deepening participation from African sovereign institutions and central banks, while reinforcing the Corporation’s role as a trusted partner for governments seeking to accelerate economic transformation through infrastructure-led growth.

The investment comes at a time when African economies are witnessing rising demand for development capital to support industrialisation, energy transition, logistics connectivity, and value-added manufacturing.

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AFC’s model, anchored on strong sovereign backing and access to global capital markets, continues to position the Corporation as a critical channel for directing capital into high-impact, bankable projects across Africa.

In Tanzania, AFC remains committed to scaling its support through sovereign financing and financial institution partnerships that support national development priorities.

These include sovereign budget support facilities to the Ministry of Finance and Planning, as well as trade finance lines to local financial institutions to strengthen liquidity, facilitate trade, and support private sector activity. These investments will solidify AFC’s continued partnership with Tanzania in advancing economic stability and enabling long-term infrastructure and industrial development.

Commenting on the equity investment, Samaila Zubairu, President & CEO of Africa Finance Corporation, said: “We are honoured by this decision and value it as a strong vote of confidence in AFC’s mandate and track record. BOT’s commitment reinforces the strategic importance of African-led institutions that can mobilise long-term capital at scale for bankable infrastructure and industrialisation projects across the continent.”

He added: “The Bank of Tanzania’s investment further strengthens our sovereign shareholder base and reflects the growing recognition of AFC as a reliable partner in bridging Africa’s infrastructure gap and fostering sustainable development across the continent.

“We look forward to deepening our engagement in Tanzania and supporting priority sectors that drive industrial growth, regional integration, and long-term economic resilience.” Mr Emmanuel Tutuba, the BoT Governor had this to say: “Africa Finance Corporation has demonstrated a strong track record in mobilising long-term capital for infrastructure and industrial development across the continent. “Our investment reflects confidence in AFC’s model and aligns with Tanzania’s priorities to strengthen economic resilience, support private sector growth, and advance sustainable development through strategic partnerships.”

Through its expanding shareholder base and strong sovereign partnerships, AFC continues to advance its strategy of mobilising domestic and international capital into Africa’s most critical infrastructure assets, supporting sustainable economic growth and enhancing the continent’s competitiveness in global value chains.

AFC is a multilateral financial institution, created by African sovereign states to provide pragmatic solutions to Africa’s infrastructure deficit and challenging operating environment. It actively pursues these solutions by developing and financing infrastructure, natural resources and industrial assets for the enhanced productivity and economic growth of African states.

AFC’s vision is to become Africa’s leading infrastructure solutions provider while the mission is foster the economic growth and industrial development of African countries, while delivering a competitive return on investment to our shareholders.

Corporate governance

AFC is a multilateral development financial institution established in 2007 by an agreement amongst sovereign African states with the critical mission of fostering economic growth and industrial development of African countries, while delivering a competitive return on investment to its shareholders.

Its vision is to be the leading developer and financier of African infrastructure, natural resources and industrial assets Since its inception in 2007, AFC has been actively involved as an investor, lead developer and financier of various strategic infrastructure projects across Africa with a range of tailor-made product offerings including debt, equity and mezzanine instruments within the project finance, trade and structured finance and equity investment space.

In addition, it offers its valued clients and stakeholders, financial advisory, project development and technical advisory services across its five core focus sectors: power, natural resources (oil, gas and mining), heavy industries, transport and telecommunication infrastructure.

In furtherance of its mandate, AFC acts as a catalyst to create and foster conditions conducive to the greater inflow of investment funds into the African continent for increased infrastructure development and export-oriented industrialisation.

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In the sixteen years of its existence, the Corporation has gained recognition as the benchmark institution for financing the development of Infrastructure projects in Africa. As of 31 December 2024, it had invested over US$15 billion in infrastructure projects across 36 African countries.

AFC has a wholly owned subsidiary, AFC Equity Investments Limited (“AFC Equity”), established in Mauritius in 2013, as an investment vehicle for the purpose of holding AFC’s equity investments. The Board of AFC Equity comprises four foreign directors and three resident directors.

The Board of AFC Equity is responsible for promoting the success of the entity by directing and supervising its a airs in accordance with objectives as approved by the sole shareholder and in compliance with applicable laws and regulations in Mauritius.

In executing their mandates, AFC and AFC Equity (collectively, the “Group”) operate within a corporate governance structure developed on high standards and in line with international best practices.

The Group’s governance culture is pivotal in driving performance and ensuring ethical conduct in all the Group’s affairs. Hence it is a key enabler and the foundation of the successes achieved by the Group to date. AFC’s corporate structure is comprised of AFC’s Member States, shareholders, Board of Directors, board committees, executive management, management committees and AFC staff and employees.

AFC was established by twin constitutive documents: the Agreement for the Establishment of Africa Finance Corporation (the AFC Establishment Agreement); and the Charter of AFC (the AFC Charter). The AFC Establishment Agreement is the treaty concluded by and between sovereign states (“Member States”). The AFC Charter is appended to the AFC Establishment Agreement and derives its legal force from the AFC Establishment Agreement.

The AFC Charter is operative among the shareholders of the Corporation (shareholders). The AFC Establishment Agreement and the AFC Charter provide the basis for the corporate governance of the organisation. The AFC Charter provides guidelines for the governance and management of the Corporation and defines the roles of the shareholders, Board of Directors and executive management.