The Arab Bank for Economic Development in Africa (BADEA), and the Africa Finance Corporation (AFC) have signed a Memorandum of Understanding to deepen their co-operation, it was announced on Thursday.

BADEA was the first Arab institution to invest in AFC, having become a shareholder in the first quarter of 2020 with an investment of $10 million, AFC said in a press statement.

The statement said AFC and BADEA are committed to co-develop and co-finance projects in the energy, transport, natural resources, heavy industries, and telecoms sectors as well as the realignment of Africa's trading position.

BADEA further commits to support strengthening AFC's presence in North Africa by leveraging BADEA's institutional linkages in the sub-region as well as with investors in the Middle East.

Samaila Zubairu, President & CEO of AFC, said: "AFC and BADEA both seek to foster economic and social development in Africa through the development and financing of infrastructure and industrial projects as well as strengthening trade in Africa. BADEA's shareholding in AFC is a natural fit and, building on this relationship, we will maximise our synergies as they relate to infrastructure, trade finance and future investments into the Corporation.

Sidi Ould Tah, Director General of BADEA, added: "BADEA's investment in AFC, which is an institution with an excellent and proven track record in delivering on transformative infrastructure projects with sustainable impact, bodes well for us at the time when we are implementing BADEA 2030, our new strategic framework".

"BADEA has a long track record of over the last 45 years in financing the public sector where infrastructure dominates its portfolio. With BADEA 2030, we have substantially expanded our portfolio to private sector and trade financing, SMEs, and Agricultural Value-Chains."

AFC was established in 2007 with an equity capital base of $1.1 billion to catalyse private sector-led infrastructure investment across Africa.

Sudan-headquartered BADEA is an independent international financial institution owned by 18 Arab countries.

(Writing by Syed Ameen Kader; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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