Africa Finance Corporation and Italy Forge $320 Million Transport Deal

In a significant move to boost infrastructure in Africa, the Lagos-based Africa Finance Corporation (AFC) has announced a forthcoming $320 million agreement with Italy. The funding will partially go towards creating a new transport corridor connecting precious mineral fields to an Angolan port, as confirmed by the AFC's chief executive, Samaila Zubairu.

Owned by African central banks and development lenders, AFC is collaborating on a U.S.-supported rail and road corridor project. The corridor is designed to link the Angolan port of Lobito to landlocked Zambia and the Democratic Republic of the Congo, regions that are rich in mineral resources. Italy's backing further highlights the strategic importance of diversifying control over these critical mineral supplies.

The financing from Italy will aid in the AFC's regular operations, alongside the major transport project. CEO Zubairu noted that although $1 billion has already been raised this year, an additional $1 billion will be sought through a syndication facility shortly, emphasizing the ongoing investment needs in Africa's infrastructure landscape.

(With inputs from agencies.)