Globally mandated development institution the OPEC Fund for International Development and multilateral financial institution Africa Finance Corporation (AFC) have signed a $50-million loan agreement to finance the development of infrastructure critical to economic growth and job creation across the continent.

The proceeds of the ten-year loan will be used to improve connectivity, transport, logistics and trade and to boost access to energy across the African continent.

The loan doubles the OPEC Fund’s commitment to AFC following an initial $50-million ten-year loan provided in January 2021, and builds on collaboration initiated through a cooperation agreement in 2017.

The loan is aligned with the United Nations Sustainable Development Goal (SDG) 9 – Innovation and Infrastructure, and SDG 17 – Partnerships.

“Africa continues to be a key region for the OPEC Fund, with more than 45% of our aggregate financing dedicated to the continent.

“Sustainable infrastructure development is key to unlock Africa’s vast potential and enable it to fully utilise its resources. Working with local partners on the ground such as AFC helps to deepen our impact and support Africa’s development agenda,” says OPEC Fund director-general Dr Abdulhamid Alkhalifa.

“AFC has enjoyed a long-standing partnership with the OPEC Fund and we are delighted to collaborate again to support the work we do in developing critical infrastructure in Africa. Developed and developing countries alike are battling the chronic challenges brought on by a wave of global shocks, and these challenges will only be solved by working together through partnership and engagement between the world’s leading finance institutions,” says AFC president and CEO Samaila Zubairu.

Africa’s economic growth is indicated to have been slowed by global supply chain disruptions and rising costs in the aftermath of the Covid-19 pandemic, further widening the continent’s infrastructure funding gap. The collaboration between the OPEC Fund and AFC is targeted at increasing access to long-term sustainable finance for infrastructure projects.