In 2023, Africa Finance Corporation’s total assets climbed by 17.3% to $12.34 billion. In order to offer workable solutions for the continent’s infrastructural deficiencies and difficult operating conditions, independent African governments and the African private sector collaborated to establish the African Development Bank (AFC), a multilateral development financing organization.
According to the annual report that was made public on the company’s website, net profit increased by 15.3% to $329.7 million from $285.9 million to $329.7 million in the previous year. It has an 11% return on equity as of 2023.
Emeka Emuwa, the bank’s chairman, commented on the statistics, saying, “AFC exceeded the objective throughout the year by increasing earnings by 15.3% to $329.7 million and total assets by 17.3% to US$12.3 billion, surpassing the target set out in its five-year strategy by $2.3bn.
“Operating income in 2023 was $497.5m and shareholders total equity ended the year at $3.4bn, reflecting increases of 24.2 per cent and 26.7 per cent, respectively. This robust performance further solidifies AFC’s position as Africa’s leading provider of pragmatic infrastructure investment solutions.”
According to him, AFC’s most successful year for capital raising to date was 2023, as six new shareholders joined and 11 existing shareholders increased their equity contributions, resulting in a total equity injection of over $500m.
In terms of dividends, the AFC chairman stated, “Thanks to the AFC’s strong performance in 2023, I’m delighted to announce to shareholders that the board of directors is proposing a dividend payout of 5.3158 US cents per share (2022: 6.6315 US cents per share), amounting to approximately $81.74m (2022: $85.58m).”
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The AFC also highlighted its expanding pan-African footprint, with the addition of three new member states – Burundi, Ethiopia, and Sao Tome and Principe, bringing the total number of member states to 42, or 78 per cent of African countries.
Since its inception in 2007, with an initial capital of $1.1bn to catalyse investment in Africa’s infrastructure sector, the AFC has claimed investments totalling $13bn across the continent.
Its principal shareholders include the African Reinsurance Corporation, the African Development Bank, and pan-African banking groups Ecobank and United Bank for Africa.
The President and Chief Executive Officer of AFC, Samaila Zubairu, remarked, “Our robust financial results reflect AFC’s unwavering commitment to unlock practical solutions for projects that enhance local value capture and spur industrialisation. In a year marked by global economic and geopolitical complexities, AFC has stood as a beacon of resilience, delivering value to all stakeholders while creating jobs and prosperity through structural transformation across Africa.”
Speaking on its focus, Zubairu said, “As AFC transitions into our next growth phase, the organisation stands at a pivotal juncture, poised to elevate our impact significantly. The shift from our 2018-2023 strategic framework to a refreshed, forward-looking agenda underscores our commitment to redoubling our efforts in shaping a robust future for African infrastructure and development.
“Our new strategy which charts the course for the next decade, emphasises enhancing AFC’s influence and operational capacity. It is structured around the following five core pillars: achieving a balanced portfolio, identifying new capital sources, leveraging platforms for strategic reach, cultivating a mature organisational framework, and harnessing digital efficiency for speed and innovation.”
AFC in a statement released recently announced the closure of a record-breaking syndicated $1.16bn, sourced from a variety of banks across Asia, the Middle East, and Europe.
