Djibouti has become the newest member of Africa Finance Corporation (AFC), an international investment grade multilateral finance institution investing in key infrastructure projects across Africa. The AFC was established in 2007 with an equity capital base of $1.1 billion, and has a current balance of $3.2 billion.
In May 2015, AFC successfully concluded a debut $750 million Eurobond issue under its $3 billion Global Medium Term Note Programme (GMTN) that was seven times oversubscribed and attracted investors from Asia, Europe and the USA.
Ali Guelleh Aboubaker, Minister of Investments in the Office of the President of Djibouti, said, “The government of Djibouti is committed to proactively investing in essential infrastructure to drive economic growth and doing what we can to attract international private investors to infrastructure investment opportunities. We look forward to working with AFC to deliver projects with real and positive economic and social impact across the country.”
The Corporation’s other members are: Cape Verde; Chad; Ghana; Guinea-Bissau; Guinea; Liberia; Nigeria; Sierra-Leone, The Gambia, Gabon, Côte d’Ivoire, Rwanda, and Uganda. Djibouti’s membership enables AFC to receive preferred creditor status within the country, the benefits of which reduce AFC’s investment risk, enabling the Corporation to provide more competitive financing solutions.
Andrew Alli, President & CEO of Africa Finance Corporation, welcomed Djibouti to the Corporation. “Djibouti is a small but important market, with natural strengths as a transport and logistics hub thanks to the government’s successful free trade policies and its location at the gateway to the Red Sea. Djibouti offers some great investment opportunities and AFC is delighted to be assisting Djibouti to meet its full growth potential and to create jobs for its citizens,” Alli said.