AFC Reports 51% Rise In Profits

Africa Finance Corporation (AFC), released its 2016 fiscal year results showing a net profit of $109.4 million up 51% year on year. See highlights below;

• US$115.3 million in Total Comprehensive Income, up 64% year-on-year
• US$109.4 million in Net Profit, up 51% year-on-year
• US$3.4 billion in Total Assets, up 13% year-on-year
• US1.4 billion in Total Equity, up 6% year-on-year
• US$192.8 million in Interest Income, up 21% year-on-year
• US$21.9 million in Fees, Commissions and other Income, up 121% year-on-year

AFC also issued the following as key milestones achieved during the period

• 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.
•  Financed Hakan, a peat to power plant, which will increase Rwanda’s installed capacity by 40% when it comes online.

Here is what Andrew Alli, President and CEO of AFC had to say about the result

“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.”