The African Development Bank Group (AfDB) has signed a €120 million non-sovereign Partial Credit Guarantee (PCG) with Mota-Engil Africa, marking the Bank’s first direct support to an Engineering, Procurement and Construction (EPC) company on the continent. The agreement, formalised at AfDB headquarters in Abidjan, underpins a €170 million Sustainability-Linked Loan arranged by Deutsche Bank AG and is designed to unlock long-term financing for critical infrastructure projects across more than a dozen African countries.
The transaction represents a pivotal innovation in Africa’s development finance architecture, one that blends private capital, multilateral credit enhancement, and sustainability-linked incentives to accelerate delivery of essential infrastructure. By partially guaranteeing Mota-Engil Africa’s commercial debt, AfDB is using its balance sheet to extend maturities, lower borrowing costs, and de-risk investment in projects that would otherwise remain out of reach for traditional financing channels.
The deal’s significance lies in what it signals: a maturing of Africa’s project finance ecosystem. For decades, EPC firms, even those with proven track records, have struggled to access long-tenor, competitively priced capital. The AfDB guarantee effectively bridges that gap by providing comfort to lenders like Deutsche Bank, allowing them to expand exposure to African markets under sound risk management principles. It also demonstrates how multilateral institutions can crowd in private finance for infrastructure that aligns with the continent’s climate and sustainability goals.
Under the Sustainability-Linked Financing Framework, Mota-Engil Africa has committed to measurable environmental, social, and governance (ESG) outcomes, including improving occupational safety standards, increasing women’s representation in management, and expanding local employment and skills development across its operations. This framework ensures that financial incentives are tied to performance indicators, making the guarantee not just a credit enhancement tool, but also a mechanism for accountability and transformation.
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AfDB Vice President for Private Sector, Infrastructure and Industrialization, Solomon Quaynor, described the signing as “a significant step forward in leveraging guarantees to unlock affordable and appropriate commercial financing for Africa’s development.” He underscored that in partnership with Deutsche Bank, the transaction would help deliver sustainable infrastructure that drives inclusive growth, job creation, and climate resilience, priorities that mirror the Bank’s “High 5” agenda.
For Mota-Engil Africa, the partnership marks a major inflection point. The company, active in engineering, transport, environmental services, and energy-efficient civil works, will now have the balance sheet flexibility to deliver a robust project pipeline spanning transport corridors, water and sanitation systems, renewable energy infrastructure, and urban resilience projects. Chairman Manuel Mota called the agreement “a defining moment” that demonstrates the company’s capacity to “deploy bold, innovative financial and operational models that unlock sustainable infrastructure at scale.”
Deutsche Bank’s Maryam Khosrowshahi, Managing Director and Head of Sub-Saharan Africa Coverage, echoed that sentiment, noting that the bank is “proud to support a transaction that strengthens essential infrastructure while embedding sustainability Key Performance Indicators at its core.” She emphasized that the approach, integrating ESG metrics directly into financing terms, is what will “drive measurable outcomes and support lasting progress” across the region.
The transaction’s implications extend beyond Mota-Engil Africa itself. It sets a precedent for how African EPC and construction firms can access commercial financing at scale, backed by multilateral credit guarantees. By proving that sustainability-linked lending can work in high-risk jurisdictions, the deal could catalyze similar arrangements across Africa’s transport, energy, and water sectors, areas where infrastructure deficits remain acute. According to AfDB data, Africa’s infrastructure financing gap exceeds $100 billion annually, with climate-resilient and inclusive projects among the most underfunded.
The deal also complements the Bank’s Ten-Year Strategy (2023–2033), which targets accelerated green industrialisation, private sector expansion, and resilient economies. By prioritizing sustainability-linked instruments, AfDB is not only mobilizing capital but also setting new standards for corporate responsibility and governance in infrastructure development.
The partnership underscores a crucial evolution: that infrastructure financing in Africa is no longer only about building physical assets, but also about embedding environmental and social value in the process. Each project financed under this facility will be benchmarked against global sustainability metrics, ensuring that new highways, ports, and energy systems also contribute to gender equity, local job creation, and emissions reduction.
Financial advisers Cygnum Capital, alongside legal advisers Ashurst, Baker McKenzie, and Vieira de Almeida, supported the deal’s structuring and compliance frameworks, reinforcing the high level of financial and legal rigor expected of sustainability-linked transactions.
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In the broader context of Africa’s industrial and climate agenda, the AfDB–Mota-Engil partnership reflects a new financing logic: one that blends commercial discipline with developmental purpose, leveraging private markets to deliver public good. As global lenders and institutional investors look for credible pathways to align returns with sustainability, Africa’s infrastructure space may emerge as one of the most promising frontiers — provided such partnerships continue to anchor accountability, transparency, and measurable impact.
