Eritea has experienced stabled growth driven by increased investment in mining and extractive sectors with an expectation to deliver an average annual GDP growth rate of around 4-5% between 2019 and 2024.
AFC has agreed to make a US$50 million equity investment in Danakali as part of the overall funding package for development and construction of the Colluli Sulphate of Potash Project in Eritea.
AFC and African Export-Import Bank (Afreximbank) have also obtained formal credit approval to provide the project with US$200 million in senior debt finance.
“Further mining and infrastructure investment”
Chief executive officer Niels Wage said: “We are pleased that Eritrea has been confirmed as an AFC member state.
“It represents a strong endorsement from the Eritrean Government for one of the CMSC’s key funding partners and exhibits AFC’s aspirations for further mining and infrastructure investment.
“Eritea is open for business.”
AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$ 1 billion.
It is the leading Pan-African multilateral development finance institution focused on infrastructure, with over US$5 billion in total assets.
As its 24th member state, Eritrea stands to benefit from AFC’s significant project development expertise and extensive partner network which includes lenders, investors, project sponsors, project development companies and institutions.
With the growing in-country focus on developing mining, energy and agricultural industries, investment in Eritrea will boost further economic growth and support the country’s Sustainable Development Agenda to which the construction of Colluli is set to contribute significantly.