- FinDev Canada enters Sub-Saharan Africa with landmark $100mn loan
- AFC to channel funding into renewable energy and transport projects
Canada’s development finance institution, FinDev Canada, has signed an agreement to provide the Africa Finance Corporation (AFC) with a $100 million, 10-year loan aimed at supporting climate-resilient infrastructure across Sub-Saharan Africa.
The deal marks FinDev Canada’s first infrastructure financing in Sub-Saharan Africa and AFC’s debut entry into the Canadian market, underscoring growing North American confidence in Africa’s sustainable development agenda.
Banji Fehintola, AFC’s Executive Board Member and Head of Financial Services, said the partnership represents a major milestone in broadening the continent’s access to long-term, low-carbon funding.
“We are delighted to partner with FinDev Canada on this milestone transaction,” Fehintola said. “This partnership reflects our shared commitment to accelerating sustainable development across the continent through high-impact, climate-resilient infrastructure. The transaction not only diversifies AFC’s funding base but also deepens North America’s participation in Africa’s growth story.”
Strengthening Africa’s funding base
The facility will strengthen AFC’s capacity to finance a growing pipeline of renewable energy and low-carbon transport projects across the region. It also demonstrates global confidence in AFC’s governance, credit performance, and execution record as the leading platform for sustainable infrastructure investment in Africa.
FinDev Canada’s Vice President and Chief Investment Officer, Paulo Martelli, said the agreement aligns with Canada’s priorities to promote climate and nature action through private-sector partnerships.
“This transaction represents an opportunity for FinDev Canada to support a leading solutions provider financing critical infrastructure in Sub-Saharan Africa,” Martelli said. “We are proud to invest in an institution that aligns with our impact development goals, particularly market development and climate and nature action.”
AFC’s expanding funding network now includes leading global partners such as Germany’s KfW, Italy’s CDP, the US International Development Finance Corporation, the Netherlands’ FMO, and France’s Proparco – a reflection of strong investor trust in the corporation’s creditworthiness and its ability to deliver “de-risked, game-changing” projects across Africa.
A turning point for Africa’s financial ecosystem
African economist and capital markets analyst Dr Tunde Adebayo described the deal as a defining moment in Africa’s engagement with global sustainable finance.
“This is not just about raising funds—it’s about broadening Africa’s access to high-quality, patient capital,” Adebayo said. “By partnering with FinDev Canada, AFC is signalling that African institutions can operate confidently in advanced markets with the same transparency, governance, and sophistication as their global peers.”
The loan facility, analysts say, could improve AFC’s liquidity position and credit profile, potentially lowering its future borrowing costs and enhancing confidence in African quasi-sovereign and Eurobond markets.
While the deal may not immediately shift yield curves, market watchers believe it will stabilise sentiment and attract institutional investors seeking exposure to Africa’s expanding sustainable infrastructure sector.
“This move strengthens Africa’s position in global sustainable finance,” Adebayo added. “It sends a message that African institutions can compete for capital on merit.”
The agreement underscores the growing convergence between Africa’s infrastructure ambitions and Canada’s sustainable investment priorities, offering a blueprint for future partnerships bridging continents through green finance.
