ANTANANARIVO, Madagascar, September 3rd 2019,-/African Media Agency (AMA)/-Africa Finance Corporation (“AFC” or “the Corporation”), the leading infrastructure solutions provider in Africa, announces the Republic of Madagascar (“Madagascar” or “the Country”) has become the twenty-second (22nd) member state of the Corporation.
The Republic of Madagascar has sustained positive economic growth over the last five years, with GDP growth outperforming several other economies within the region, driven by the implementation of its new economic and social development strategy. This sustained growth has been led predominantly by the tertiary sector, with the performance of the export industry leading to a trade surplus of +0.8 per cent of GDP, well above the African average of -12.97 per cent deficit.
Madagascar’s strategy, spearheaded by the National Development Plan, focuses on developing inclusive growth and sustainable development especially within rural communities where much of the population lives below the poverty line. The Country’s economic and social development strategy places a focus on the development and rehabilitation of key regional infrastructure, with emphasis on transport, logistics and power, as it aims to achieve its goal of sustainable development.
Following the completion of Madagascar’s accession to the membership of AFC, on the 27th August 2019, the Corporation will begin discussions with the private and public authorities to determine how best AFC can support its future growth and development of the Madagascan economy.
Samaila Zubairu, President & CEO of AFC, commented on the announcement: “It is my pleasure to welcome Madagascar as the 22nd Member State of AFC. Over the past decade Madagascar has undergone reforms demonstrative of its commitment towards sustainable growth through key developments within its tertiary sector.
“The country’s exciting potential for growth provides a wealth of opportunities for AFC. As Madagascar seeks to rehabilitate key regional infrastructure, we will look to help build an economic ecosystem that will provide integration and growth. We look forward to working with the people of Madagascar to assist in ensuring a strong future for the country.”
Richard Randriamandrato, Madagascan Minister of Economy and Finance, also commented on the announcement: “As a Country we are committed to the reduction of poverty in Madagascar, of which development of infrastructure plays an integral role. We see AFC as a key solution provider towards our development goals and look forward to working closely in the coming years.”
AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$1 billion, to be the catalyst for private sector-led infrastructure investment across Africa. With a current balance sheet of approximately US$4.5 billion, AFC is the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service. AFC successfully raised US$650 million in 2019, US$500 million in 2017 and US$750 million in 2015 through Eurobonds. All Eurobond issues were oversubscribed and attracted investors from Asia, Europe and the USA. AFC’s investment approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth. AFC invests in high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. To date, the Corporation has invested over US$4.5 billion in projects within 29 countries across Africa.