The Republic of Ghana (“Ghana”) has marked its 7th anniversary as a Member State of Africa Finance Corporation (“AFC” or “the Corporation”) by becoming a sovereign shareholder in the Corporation, making an initial equity investment of USD 10 million.
The Government of Ghana has also committed to invest a further USD 40 million in the Corporation; representing the second tranche of its UD 50 million commitment to purchase AFC equity. Ghana has been a Member State of AFC since February 2011.
Investments in the equity of AFC can be made by its Member States, by international organizations, as well as by private sector corporations.
Andrew Alli, President and Chief Executive Officer of AFC commented: “This investment not only strengthens the partnership between AFC and Ghana, it also serves as an acknowledgement of AFC’s efforts thus far in the development and financing of infrastructure in Africa and acts as an incentive for AFC’s continued commitment to infrastructure development in Ghana”.
Hon. Charles Adu Boahen, Deputy Minister of Finance of Ghana, also commented: “AFC remains an infrastructure development partner of choice for the Government of Ghana. The Corporation has proven its commitment to the socio-economic development of the country, in particular; 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 enhance the fulfillment of her mandate, to facilitate the continuous delivery of sustainable infrastructure assets and projects in the countries and the respective regions.”
Over the past 10 years, AFC has mobilized more than US$1.2 billion of investments into Ghana. Notable investments made by AFC in Ghana include:
* The US$900 million to finance the 350MW Cenpower Kpone Independent Power Plant which has created direct employment for over 1,550 Ghanaians during construction, and is scheduled for commissioning in Q2 2018. AFC is the lead developer of this project and the largest shareholder in the development company – Cenpower;
* The provision of USD 60 million to Volta River Authority (VRA) to finance the completion of the 220MW Kpone Thermal Power Plant and the conversion to gas of the 80MW Mine Reserve Plant in Tema, to help address electricity shortages in Ghana;
* The provision of a corporate loan of USD 60 million to VRA to finance its operations;
* The provision of US$50 million as part of the USD 400 million syndicated facility to Ghana Airport Company Limited for the expansion of Kotoka International Airport and other airports in Ghana;
* The USD 50 million promissory notes funding for the construction of Regional Hospitals (Euroget);
* The provision of USD 50 million in financing of the Jubilee Oil Field development;
* The provision of a loan for the project development of the Atuabo Freeport; and
* The provision of trade finance primarily for oil importation.
AFC is also the largest shareholder in the USD 240 million Main One Fibre-Optic Cable Project which enhances Ghana’s connectivity to the rest of the world through faster and more technologically advanced broadband capacity. Given the Corporation’s track record in Ghana, AFC was also awarded a mandate by the West Africa Power Pool (WAPP) to develop another major 450MW Power Plant in the Western Region of Ghana.