Zimbabwe joins Africa Finance Corporation

Published: 23 May 2018

ZIMBABWE has become the 19th member state of the Africa Finance Corporation (AFC), the continent's leading infrastructure development finance institution.

It is the latest endorsement of reforms embarked on by the government of President Emmerson Mnangagwa, which came to power in November last year after the resignation of of former president Robert Mugabe.

AFC has already begun the process of exploring investment opportunities alongside the Infrastructure Development Bank of Zimbabwe (IDBZ).

IDBZ has a national mandate to champion infrastructure development in key sectors of energy, transport, housing, technology, water and sanitation.

Zimbabwe's membership in the AFC will significantly enhance the bank's resource mobilisation efforts towards funding the country's huge infrastructure needs.

"We are pleased to welcome Zimbabwe as a member state of AFC. We view the ongoing political and economic renaissance positively and hope that we can contribute effectively to the revitalization of infrastructure within thecountry," said Andrew Alli, President and Chief Executive Officer of AFC.

Inception into AFC is the latest in a series of Zimbabwe's re-engagements with the wider international community after years of isolation.

The isolation stemmed from controversial economic policies and human rights violations by the Mugabe regime.

Government officials welcomed Zimbabwe's membership to AFC.

Patrick Chinamasa, Minister of Finance and Economic Development, said AFC's business model had proven that the continent could effectively mobilise infrastructure financing by itself.

"We enjoin other African States to join the corporation, promulgating home-grown solutions to our infrastructure challenges," Chinamasa said.

Dr Sibusiso Moyo, Minister of Foreign Affairs, said AFC membership would spur economic revival.

"We look forward to AFC leading the infrastructure and industrial renaissance of Zimbabwe in particular, and Africa in general," Moyo said.

Thomas Zondo Sakala, CEO of the IDBZ, said the bank would work closely with the AFC, particularly in the areas of project development, capacity building and infrastructure delivery.

With a current balance sheet size of approximately US$3,5 billion, AFC is the second-highest investment grade rated multilateral financial institution in Africa.

- CAJ News

Tags: AFC,