• FUNDING & INVESTMENT INTEL AFRICA FINANCE CORPORATION Dedicated African infrastructure investment institution, the African Finance Corporation (AFC), has spent the last 10 years (since it was first established) investing in projects on the continent that stimulate in-country economic growth and development – primarily infrastructure (which includes mining-related ventures). This more recently includes a major investment into an emerging bauxite project in Guinea which fulfils another important AFC-criterion – delivering financial assistance to reignite business in Africa’s post Ebola-stricken countries, writes LAURA CORNISH. “A ccording to World Bank reports, it is estimated that over US$100 billion every year is required to bridge the infrastructural gap across Africa, which suffers for a start from a dilapidated power sector and ‘less-than-ideal’ transport infrastructure, from both an intermodal and interregional connectivity perspective,” says Osam Iyahen, director & head of natural resources at the AFC. “The combination of these diffi culties leads to a number of adverse social economic impacts across Africa which are reflected in the GDP and other economic indices,” he continues. The lack of infrastructure also impacts heavily on mining developments whose viability is often determined to a large extent by logistics and power availability. “AFC was founded in 2007 to address this specific issue. We are an infrastructural investment bank at the core with a mandate to provide funding for projects that have a developmental impact.” Iyahen highlights the investment grade rated organisation’s “unique” attributes noting that the business is capitalised by Africans to solve African problems. It has been rapidly gaining an international reputation as a sound investor in this sector based on its deep knowledge of the African infrastructure landscape. “That gives us a significant edge and advantage because we are able to take on and absorb risks that other financiers can’t. We are a public/private partnership 10 MINING REVIEW AFRICA | APRIL 2017 On site at the Bel Air project in Guinea, in which the AFC is making a considerable investment between government and private entities, meaning we have a commercial imperative to seek out financially viable projects which importantly need to have developmental impact,” Iyahen reiterates. Having raised a significant amount of funds from external parties and lenders over the years, the AFC’s balance sheet currently sits north of $3 billion. “As such we believe we are on track to become the premier international investment pre banks ban focusing on infrastructure development across Africa.” de T To demonstrate AFC’s investment journey to date, inv Iyahen says the organisation Iya has invested in a number of ha infrastructure projects in Africa in which include toll roads in w South Africa. “Our investments S also include the 25.5 MW al Cabeolica wind farm in Cape C Cab Verde which provides 20% of the total power usage on the island as well as the Henri Konan Bedie bridge – a $365 million public private partnership project in Abidjan, Côte d’Ivoire.” This bridge consists of a 6.4 km highway and 1.9 km bridge with three lanes in each direction across the Ebrié lagoon, connecting Abidjan’s residential Riviera district directly with the commercial district of Marcory. Further to this the company was a pioneer investor in an international undersea high speed telecom company called MainOne – which has supplied high speed internet from Spain to a number of West African countries including Nigeria, Ghana, Burkina Fasa, Côte d’Ivoire, Togo and Benin. “At present we are investing (with the highest equity stake) in a 350 MW gas-fired power plant in Ghana,” Iyahen adds. Discussing the mining sector, the head of natural resources notes its increasing attraction for AFC. “We have entered into our third transaction and are looking to deploy additional capital into the mining space this year. We believe we have a unique role to play in bridging the gap