Africa Finance Corporation (AFC), the leading infrastructure solutions provider in African countries, announces a US$150 million strategic investment in Danakali Limited in Eritrea. The AFCs fund will help to develop the Colluli Potash Project located in the Danakali region of Eritrea. The Project is owned by the Colluli Mining Share Company, a joint venture between Danakali and the Eritrean National Mining Corporation.
Colluli Potash Project site contains a large, long-life and low-cost sulphate of potash (SOP) deposit, with estimated reserves of about 1.2 Billion tonnes of potassium bearing salts. As per the agreement, Danakali will be the developer and operator of the Colluli Potash Project. The Project is very significant for economic & infrastructural development of Eritrea. The Danakali project will place Eritrea as the only African producer of SOP. The potash generated will help improve crops absorbency of nutrients and resilience to hostile conditions.
Samaila Zubairu, President of AFC, said: Eritrea is a post-conflict country that is in the process of rebuilding itself and its economy. Projects like Colluli create jobs, provide export earnings and tax revenues. AFC is keen to support such projects and the governments efforts in achieving its aspirations of scaling up infrastructure investments to promote agriculture and industrialization for enhanced productivity and economic growth.
Other recent announcements by AFC are mentioned below:
- December 2019: Africa Finance Corporation, announce a Joint Development Agreement with Switzerland based a diversified company Brahms Oil Refineries Limited, which is part of Brahms Group.
- November 2019: AFC closed its inaugural $140 million Kimchi Term Loan Facility. The proceeds from the Kimchi Term Loan will be used for general corporate purposes in accordance with AFC’s Establishment Agreement and the Charter.
Africa Finance Corporation (AFC), a pan-African multilateral finance institution, was established in 2007 with an equity capital base of US$1 billion. It headquartered at Lagos, Nigeria and has been established through a treaty between member states. The AFCs member includes major commercial banks and financial institutions. At present AFC have 22 states and one multilateral organisation as members.
AFC invests in infrastructure related assets that provide essential services like power, natural resources, heavy industry, transport, and telecommunications.