Ghana Becomes AFC’s Sovereign Shareholder

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Ghana has marked its 7th anniversary as a member state of Africa Finance Corporation (AFC) by becoming a sovereign shareholder in the corporation, making an initial equity investment of US$10 million.

The Government of Ghana has also committed to invest a further US$40 million in the corporation; representing the second tranche of its U$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 organisations, as well as by private sector corporations.

Commenting on the development, a statement quoted the President and Chief Executive Officer of AFC, Andrew Alli, to have said: ““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”.

Also, the Deputy Minister of Finance of Ghana, Charles Adu Boahen noted thatAFC 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,” he added.

Over the past 10 years, AFC has mobilised 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;

In addition, the provision of US$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, among others.