The Africa Finance Corp. (AFC) is launching a $2 billion facility to support recovery and resilience in Africa. AFC has committed to funding up to 50 percent of the new African Economic Resilience Facility and mobilizing the remainder through the corporation’s network of international partners and investors.
The facility will be disbursed through loans from AFC to selected commercial banks, regional development banks and central banks in various African countries, providing them with much needed hard currency liquidity to finance trade and other economic activities in their jurisdictions.
“The COVID-19 pandemic set back Africa’s economic growth trajectory and widened the trade financing gap, while the Russia-Ukraine conflict has added a further set of challenges negatively impacting growth prospects across the continent,” said Banji Fehintola, head of treasury and financial institutions at AFC. “We are determined to play a leading role in helping the continen