Africa Finance Corporation (AFC) has announced that a plan to invest 205 million USD in Guinea as an effort to help boost mineral exploration in the country through Alufer Mining Company (a Guinea based mineral exploration company) at their high grade bauxite reserve, Bel Air mine. The Bel Air mine is targeting release its first production by 2019 with an expected 10 million tonnes a year. The global bauxite supply is currently falling deficit to growing demand and thus, the development of AFC will increase production to contribute to global demand.
Africa Finance Corporation, earlier this year issued its maiden Sukuk – which the highest-rated Sukuk issuance from an African institution. After attracting high levels of investor interest, the initial target of 100 million USD was more than twice oversubscribed, resulting in the transaction being upsized to 150 million USD and a final order book of approximately 230 million USD. The transaction represents the first Sukuk to be issued by an African supranational entity, and also the first Sukuk transaction in 2017.
The multilateral development finance institution and project developer is continuously proving its commitment towards African development. The CIO of Africa Finance Corporation, Andrews Oliver, said on Monday that mining exports have historically played a crucial role in Guinea’s economy, accounting for up to a quarter of Guinea’s exports and as global demand increases, Africa Finance Corporation is happy to boast of being the only the sole private sector African investor in the Bel Air mine. AFC is playing a functional role in the continent to promote local investment and business. He additionally urged Alufer Company to keep working with local communities in developing sustainable projects which do not stress the environment but increase the opportunities of innovation and assist in the provision of local infrastructure and job creation.