Zimbabwe joins Africa Finance Corporation

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By Business Reporter

ZIMBABWE has joined the Africa Finance Corporation (AFC) as part of president’s Emmerson Mnangagwa’s efforts to reengage the international community and bolster the country’s ailing econony.

The southern African nation becomes the 19th state to join AFC.

Finance Patrick Chinamasa recently signed the Instrument of Adherence to the Member of Africa Finance Corporation to operationalise Harare’s affiliation with the continental institution. 

“AFC’s business model has proven that the African continent can effectively mobilise infrastructure financing by itself,” Chinamasa said.

“We enjoin other African States to join the Corporation, promulgating home-grown solutions to our infrastructure challenges”.

Foreign Affairs minister Sibusiso Moyo said, “It is refreshing to see an African focused financing institution like AFC. We look forward to AFC leading the infrastructure and industrial renaissance of Zimbabwe in particular, and Africa in general”.

AFC has already begun the process of exploring, together with the Infrastructure Development Bank of Zimbabwe (IDBZ), opportunities for investment.

“We look forward to working closely with the AFC, particularly in the areas of project development, capacity building, and infrastructure delivery,” said chief executive officer of IDBZ Thomas Zondo Sakala.

According to the AFC website, the organisation was established in 2007 with an equity capital base of $1billion to be the catalyst for private sector-led infrastructure investment across Africa.

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

Since taking over from former president Robert Mugabe, Mnangagwa has declared Zimbabwe open for business by launching policy reforms with the hope of luring investment and promoting development.

“We are pleased to welcome Zimbabwe as a member state of AFC,” said Andrew Alli, president and chief executive officer of AFC.

He added, “We view the ongoing political and economic renaissance positively and hope that we can contribute effectively to the revitalization of infrastructure within the country.”

Apart from Zimbabwe, AFC says the African Reinsurance Corporation and Malawi also joined the institution this year.