By Nse Anthony-Uko,
ABUJA, (Sundiata Post) – Africa Finance Corporation (AFC), a leading pan-African multilateral development finance institution and project developer, has announced a US$109.4 million net profit for its 2016 fiscal year results, marking a 51 per cent increase year-on-year.
The Corporation announced its financial performance on Thursday, posting a 64 per cent year-on-year increase in Total Comprehensive Income to US$115.3 million; 13 per cent year-on-year increase in Total Assets to US$3.4 billion; 121 per cent year-on-year increase in Fees, Commissions and other Income to US$21.9 million; 21 per cent year-on-year in Interest Income to US$192.8 million; and six per cent year-on-year increase in Total Equity to US1.4 billion.
The AFC also announced strong operational performance with key milestones including US$688 million of new investments; Growth in the balance sheet to US$3.4 billion; expansion of the Corporations’ operational footprint to 28 countries and 14 country members with expansion to the Horn of Africa (Djibouti); creation of the African Power Platform Vehicle with Harith General Partners; closing of the first bauxite mining transaction (Alufer in Guinea); Issuance of debut unsecured Swiss Franc denominated bond, raising CHF 100 million; prioritised investing in projects in sectors crucial for stimulating strong economic growth; invested in the Gabon Special Economic Zone, (GSEZ), a joint venture between Olam and the Republic of Gabon, with a diversified portfolio of strategic infrastructure assets being developed, constructed and operated across various sectors including transport, in Gabon. This AFC investment in a single transport platform vehicle, facilitated the simultaneous development of several projects as well as financing of Hakan, a peat to power plant, which will increase Rwanda’s installed capacity by 40 per cent when it comes online.
Commenting on the results Andrew Alli, President and CEO of AFC, said, “2016 has been a successful year for AFC, reflected by our income and profit growth and our balance sheet strength. Operationally, we’ve had a great year too, with investments including Gabon’s Special Economic Zone, paving the way for greater economic diversification in the country. We’ve also strengthened our relationships with development finance institutions and the private sector – for example by launching a Joint Venture with Harith – merging power assets to create a pioneering African Power Platform Vehicle.
“AFC aims to be a US$5 billion Corporation by 2019 and despite a challenging economic environment, we are confident that we have built the firm foundations necessary to continue delivering positive socio-economic change across Africa. Ahead of our 10 year anniversary in May, we look forward to the next chapter in AFC’s growth story.”
AFC’s mission is to address Africa’s pressing infrastructure needs and build the foundations for robust economic development across the continent, while seeking a competitive return on investment for its shareholders. The Corporation has invested approximately US$4 billion in projects across 28 African countries and in its core sectors including power, telecommunications, transport and logistics, natural resources and heavy industries.