Africa Finance Corp (AFC)., a development bank partly owned by seven West African states, through the use of cost control mechanism and increased investment in projects, catapulted its full year profit.
For the year ended December 2014, AFC total comprehensive income surged by 31 percent to $113.9 million (N22.66 billion) from $ 87.3 million (N17.37 billion), the same period of the corresponding year (2013).
The impressive results mean the bank’s investment in Africa infrastructure is yielding fruits as its balance sheet size increased by 27 percent to $2.4 billion (N477.6 billion) in 2014 from $1.9 billion (N378.1 billion) in 2013.
The Corporation’s underlying revenue and balance sheet growth was driven by an increase in the total value of investments made, fee income and cost containment, with over $1.1 billion (N218.9 billion) in potential investments in projects appraised, and $ 850 million (N169.15 billion) in asset creation delivered, according to a statement by the corporation.
“Total comprehensive income was the highest since inception in 2008, reflecting strong results in project development, specifically the financial close of the Cenpower project,’’ according to the press release.
The statement added that the 350MW Kpone independent power plant under construction in Tema, Republic of Ghana, which will become the largest power plant in Ghana, accounting for approximately 10 percent of Ghana’s installed capacity.
AFC has been investing copiously in power projects in Africa which it identifies as one of the most pressing challenges to sustainable economic growth in the continent. It is also gaining recognition as the benchmark institution for financing the development of infrastructure projects in Africa.
Nigeria, Africa’s largest economy needs investment of $10 billion (N199.0 billion) a year to meet a target of increasing generating capacity to 40,000 megawatts by 2020, according to its power ministry.
AFC estimates Africa’s infrastructure and requirements and its investment deficit at over $40 billion (N7.96 billion) per annum in the next 10 years.
The World Bank estimates Africa’s infrastructure deficit at $38 billion of investment per year, with a further $37 billion (N7.36 billion) per year required in operations and maintenance. This represents c.12 percent of Africa’s current GDP.
AFC launched a landmark $15 million (N2.98 billion) project development facility with the Dutch Development Bank FMO in January 2013, to fund early-stage equity investments in projects under development pre-financial close, in the infrastructure sector across sub-Saharan Africa.
The shareholders of the corporation approved a dividend of $5.23 per as it continues to maintain strong capital and adequacy ratios.
“We are delighted with our performance during a year characterized by mixed global economic and financial conditions,” said Andrew Alli, president and & Chief Executive Officer of AFC, while commenting on the corporation’s impressive 2014 financial results.
“The depth and breadth of our infrastructure investments, and our rigorous management of expenses and capital, have produced an excellent return for our shareholders, positioning AFC to take a leading role in continuing to bridge Africa’s infrastructure divide,” said Alli
The bank is part owned by Nigeria, Ghana, Liberia, Sierra Leone, Guinea-Bissau, Guinea and Gambia.
For the year ended December 2014, AFC total comprehensive income surged by 31 percent to $113.9 million (N22.66 billion) from $ 87.3 million (N17.37 billion), the same period of the corresponding year (2013).
The impressive results mean the bank’s investment in Africa infrastructure is yielding fruits as its balance sheet size increased by 27 percent to $2.4 billion (N477.6 billion) in 2014 from $1.9 billion (N378.1 billion) in 2013.
The Corporation’s underlying revenue and balance sheet growth was driven by an increase in the total value of investments made, fee income and cost containment, with over $1.1 billion (N218.9 billion) in potential investments in projects appraised, and $ 850 million (N169.15 billion) in asset creation delivered, according to a statement by the corporation.
“Total comprehensive income was the highest since inception in 2008, reflecting strong results in project development, specifically the financial close of the Cenpower project,’’ according to the press release.
The statement added that the 350MW Kpone independent power plant under construction in Tema, Republic of Ghana, which will become the largest power plant in Ghana, accounting for approximately 10 percent of Ghana’s installed capacity.
AFC has been investing copiously in power projects in Africa which it identifies as one of the most pressing challenges to sustainable economic growth in the continent. It is also gaining recognition as the benchmark institution for financing the development of infrastructure projects in Africa.
Nigeria, Africa’s largest economy needs investment of $10 billion (N199.0 billion) a year to meet a target of increasing generating capacity to 40,000 megawatts by 2020, according to its power ministry.
AFC estimates Africa’s infrastructure and requirements and its investment deficit at over $40 billion (N7.96 billion) per annum in the next 10 years.
The World Bank estimates Africa’s infrastructure deficit at $38 billion of investment per year, with a further $37 billion (N7.36 billion) per year required in operations and maintenance. This represents c.12 percent of Africa’s current GDP.
AFC launched a landmark $15 million (N2.98 billion) project development facility with the Dutch Development Bank FMO in January 2013, to fund early-stage equity investments in projects under development pre-financial close, in the infrastructure sector across sub-Saharan Africa.
The shareholders of the corporation approved a dividend of $5.23 per as it continues to maintain strong capital and adequacy ratios.
“We are delighted with our performance during a year characterized by mixed global economic and financial conditions,” said Andrew Alli, president and & Chief Executive Officer of AFC, while commenting on the corporation’s impressive 2014 financial results.
“The depth and breadth of our infrastructure investments, and our rigorous management of expenses and capital, have produced an excellent return for our shareholders, positioning AFC to take a leading role in continuing to bridge Africa’s infrastructure divide,” said Alli
The bank is part owned by Nigeria, Ghana, Liberia, Sierra Leone, Guinea-Bissau, Guinea and Gambia.
BALA AUGIE
