In August 2025, the Africa Finance Corporation (AFC) released its comprehensive annual Development Impact Report, offering a detailed look into the corporation’s transformative role in Africa’s infrastructure and economic development. With over 166 projects completed across 36 countries, AFC has contributed more than US$50 billion to the continent’s Gross Domestic Product (GDP) and generated 7 million jobs. These remarkable results underscore the potential of AFC’s blended finance model—an approach that combines public and private sector investments to accelerate Africa’s growth, particularly in critical areas such as energy, industrialization, and regional integration.
At the heart of AFC’s development strategy is its significant role in Africa’s energy transition. One of the corporation’s most notable achievements is the establishment of Infinity Power, Africa’s largest and fastest-growing renewable energy platform. This platform is currently delivering 1.4 GW of clean electricity, and it is on track to reach 3 GW by 2030. These efforts are key to the continent’s shift away from fossil fuels, as AFC continues to develop large-scale wind and solar projects across regions including Egypt, Senegal, and South Africa.
The energy transition is also helping to mitigate climate change, with AFC-backed projects avoiding 8.8 million tons of CO₂ emissions annually. This is an essential step in addressing Africa’s growing vulnerability to climate impacts, while also laying the groundwork for sustainable development. Projects like the Red Sea Power project in Djibouti—aiming to make the country the first in Africa powered entirely by renewable energy—further demonstrate AFC’s leadership in accelerating the continent’s clean energy future.
While energy transition is critical, AFC’s broader focus also includes industrialization and regional integration. Its investments are helping to build the foundation for a more robust industrial ecosystem in Africa. For example, the ARISE Industrial Platform in Gabon has provided opportunities for women in sectors traditionally dominated by men, with 42% female workforce participation. This is just one example of how AFC’s investments are contributing to gender equity, ensuring that women are actively engaged in the economic opportunities these projects bring.
AFC’s commitment to digital inclusion has also led to significant social outcomes. Through investments in companies like M-KOPA, a pay-as-you-go mobile solar energy finance platform, 1.7 million people were introduced to mobile internet services for the first time. Additionally, AFC’s support of telecommunications companies such as MTN and Airtel has connected over 100 million people across the continent to mobile and broadband services, bridging the digital divide and fostering greater connectivity.
Beyond energy and digital inclusion, AFC’s investments have focused on improving Africa’s infrastructure, especially in transport and trade. The Lobito Rail Corridor project, which links Angola, the Democratic Republic of Congo (DRC), and Zambia, is a prime example. By reducing export timelines from 45 days to just seven, the rail project facilitates smoother trade, reduces transport costs, and cuts 300,000 tons of CO₂ emissions annually. This improvement in regional connectivity not only boosts local economies but also helps unlock critical trade routes for minerals essential to the global energy transition.
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Similarly, AFC’s Takoradi Port project in Ghana serves as a case study in how private sector participation can support the transition to sustainable infrastructure. The project, which transitioned to private capital, exemplifies how infrastructure can remain impactful while generating returns for investors and contributing to local development.
The success of AFC’s projects is largely due to its innovative blended finance model, which ensures that projects are not only financially sustainable but also deliver long-term developmental impacts. By combining public and private capital, AFC is able to address Africa’s infrastructure needs at scale, ensuring that projects are both viable and impactful.
AFC’s development model also emphasizes exit discipline, meaning that once projects become commercially viable, they transition to private capital. This ensures that the initial impact remains intact while enabling AFC to redeploy funds into new initiatives, further driving Africa’s development.
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AFC’s investments are also aligned with global sustainability benchmarks, such as the UN Sustainable Development Goals (SDGs) and GIIN IRIS+ standards, ensuring that projects contribute to both local and global efforts to address climate change, economic inequality, and social inclusion.
Looking ahead, AFC’s report calls for continued collaboration between governments, development institutions, and private investors to scale its model across Africa. As demand for sustainable, high-yield investments increases globally, AFC’s blended finance approach offers a replicable framework for accelerating Africa’s infrastructure development and climate resilience.
To continue on this path of transformation, it is essential that all stakeholders work together to scale these proven models. Only through strategic partnerships can Africa fully realize its potential for sustainable growth, with a focus on climate-resilient infrastructure, industrialization, and regional integration.
AFC’s approach to infrastructure investment is helping to lay the foundation for Africa’s sustainable future. By focusing on renewable energy, industrial development, regional integration, and digital inclusion, AFC is playing a critical role in shaping the continent’s economic future. With a growing portfolio of impactful projects and a clear focus on measurable outcomes, AFC’s work demonstrates how infrastructure development can drive both economic growth and social inclusion.
As Africa continues to face the challenges of climate change, demographic shifts, and economic inequality, AFC’s development model stands as a powerful tool for creating a more sustainable and resilient continent. The next decade promises to be one of transformative growth, with AFC at the forefront of Africa’s journey toward sustainable development.
Read report, here.
