Ghana celebrated seven years as a member of Africa Finance Corporation (AFC) by becoming a sovereign shareholder in the corporation, marking it with an initial equity investment of $ 10 million.
Ghana, a member of the AFC since February 2011, has also committed to invest a further US $ 40 million in the company. This is the second tranche of his $ 50 million commitment to purchase AFC shares. Investments in AFC’s equity can be made by its Member States, international organizations and private sector companies.
Ghanaian Deputy Finance Minister Charles Adu Boahen said on the occasion: “AFC remains a preferred infrastructure development partner for the government of Ghana. The company has demonstrated its commitment in particular to the country’s socio-economic development. In addition to its growing presence across the continent and stands as a beacon of corporate pan-Africanism. Ghana strongly encourages other African nations to invest in AFC to improve the fulfillment of their mandate and facilitate the continuous delivery of sustainable infrastructure facilities and projects in the countries and regions. “
Andrew Alli, President and Chief Executive Officer of AFC, added, “This investment not only strengthens the partnership between AFC and Ghana, but also recognizes AFC’s past efforts in developing and financing infrastructure in Africa and acting as a an incentive for AFC’s continued commitment to infrastructure development in Ghana. ”
In the past 10 years, AFC has mobilized more than $ 1.2 billion in investment in Ghana. AFC’s notable investments in Ghana include: $ 900 million to fund the 350 MW Cenpower Kpone Independent Power Plant, which created direct jobs for over 1,550 Ghanaians during construction and is scheduled to go live in Q2 2018. AFC is the main developer of this power plant project and the largest shareholder in the development company – Cenpower; $ 60 million allocated to the Volta River Authority (VRA) to fund the completion of the 220 MW Kpone thermal power plant and the gas conversion of the 80 MW Tema mine reserve plant to address the electricity shortage in Ghana; the provision of a $ 60 million corporate loan to VRA to fund its business; the provision of US $ 50 million under the US $ 400 million Syndicated Facility to Ghana Airport Company Limited for the expansion of Kotoka International Airport and other airports in Ghana; the US $ 50 million borrower’s note loan for building regional hospitals (Euroget); $ 50 million to fund the development of the Jubilee Oilfield; the provision of a loan for the Atuabo Freeport project development; and the provision of trade finance mainly for oil imports.
AFC is also the largest shareholder in the $ 240 million Main One fiber optic cable project, which improves Ghana’s connectivity to the rest of the world through faster and more technologically advanced broadband capacity. Given the company’s track record in Ghana, AFC received an order from the West Africa Power Pool (WAPP) to develop another large 450 MW power plant in the western region of Ghana.