Rwanda Joins Africa Finance Corporation To Tap More Cash

The AFC also invested in the Bakwena toll road project in South Africa
The AFC also invested in the Bakwena toll road project in South Africa

Rwanda on Thursday attained full membership of the Nigeria-based development financier, the Africa Finance Corporation (AFC) – making it the 12th member, the Corporation announced.

The Lagos-based institution, in which seven west African states including Nigeria and Ghana own a 46 percent stake, was set up in 2007 to provide public and private money for major infrastructure projects around Africa.

AFC currently boasts of US$2.6 billion in investment projects across 24 African countries in power, telecommunications, transport and logistics, natural resources and heavy industries.

On November 4, Rwanda signed the Corporation’s instrument of accession and acceptance of membership. And today, executives at the financier ruled it admissible.

The government has been trip-trotting all over pitching up to 20 bankable projects worth $22.93 billion to boost its economy.

In infrastructure, the government needs $930.4m for roads around the country, energy production, which includes extraction of oil and electricity generation, worth $2.7 billion.

The Mombasa-Kampala-Kigali and the Dar Es Salaam-Isaka–Kigali Railway worth $18 billion are also on the table. A successful bidder will construct Rwanda’s biggest airport for $700m – to tap at least 3m travelers annually.

In agribusiness, there is $83.2m up for grabs, through a $3m avocado project in Eastern Rwanda, a $10m beans processing plant, a $1.2m fertilizer distribution project, a $21m flower park and a $48m fresh wholesale food market in Kigali special economic zone.

Commenting about entry into the AFC, Rwanda finance minister Claver Gatete said; “I am delighted to officially announce Rwanda as the first East African member country of the Africa Finance Corporation, a development institution well known for its capability of providing innovative financing solutions to large infrastructure projects on the continent.”

Meanwhile, Uganda also joined the AFC today – making it the 13th member. They are the only nations of the 5-member East African Community (EAC) who to be party to the AFC.

Leave a Comment