The OPEC Fund for International Development (the OPEC Fund) and Africa Finance Corporation (AFC) have signed a $50 million loan agreement to finance the development of infrastructure across the continent.

The proceeds of the 10-year loan will be used to improve connectivity, transport, logistics, trade and to boost access to energy across the African continent, OPEC Fund said in a press statement. 

The loan doubles the OPEC Fund’s commitment to AFC following an initial $50 million 10-year loan provided in January 2021 and builds on collaboration initiated through a cooperation agreement in 2017.

The statement said the loan is aligned with the United Nations Sustainable Development Goal (SDG) 9 - Innovation and infrastructure, and SDG 17 – Partnerships.

OPEC Fund Director-General Abdulhamid Alkhalifa said more than 45 percent of the Fund’s aggregate financing is dedicated Africa.

The collaboration between the OPEC Fund and AFC is targeted at increasing access to long-term sustainable finance for infrastructure projects.

(Writing by SA Kader; Editing by Anoop Menon)