Africa Finance Corporation (AFC), a leading infrastructure solutions provider on the continent, has secured a $100 million loan from the Export-Import Bank of India, in a move aimed at strengthening its capacity to finance critical infrastructure projects across Africa.

The financing agreement, concluded for a five-year period, underscores the growing collaboration between African development finance institutions and Asian lenders, as demand for infrastructure funding continues to rise across the continent.

According to AFC, the facility will support investments in key sectors including energy, transportation, heavy industry, and logistics. The institution plays a central role in bridging Africa’s infrastructure gap, which remains one of the major constraints to economic growth.

The deal was formalised during AFC’s Investor Day held in London in April 2026, where the organisation highlighted its strategy of diversifying funding sources and deepening partnerships with global financial institutions.

This is not the first collaboration between AFC and India’s Exim Bank. The two institutions previously signed similar arrangements, reflecting a sustained relationship aimed at accelerating infrastructure development in Africa.

The latest financing comes at a time when African economies are seeking innovative funding mechanisms to address an estimated multi-billion-dollar annual infrastructure deficit. Development finance institutions like AFC are increasingly turning to non-traditional partners, including Asian economies, to mobilise long-term capital.

Analysts note that India’s growing financial engagement in Africa also reflects broader geopolitical and economic interests, as global competition intensifies over infrastructure investment on the continent.

The AFC said the new facility will enhance its ability to structure and deliver large-scale projects that are essential for industrialisation, job creation, and regional integration across Africa.