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00:00Tell us a bit about the biggest syndicated loan for Africa Finance Corporation.
00:04How did it come about?
00:05When did it come about?
00:08So we typically have a funding plan that's approved for us every year, whereby we seek
00:15to raise capital to fund our project.
00:18You know that we're Africa's infrastructure solutions provider and what we do in the main
00:23is to develop and finance infrastructure, natural resource and industrial assets across
00:28the continent.
00:30So we typically raise funds, you know, from both internally generated sources, the markets,
00:40you know, syndication markets, the euro bond markets, and then the development finance
00:46partner markets.
00:48You know, those are the three buckets of funding that we typically get.
00:51And then we deploy into project.
00:52So last year we did $1.5 billion.
00:56So this year we wanted to go again at $1.6 billion, but we raised $2 billion.
01:02What is important is the timing and the fact that we're able to get even more partners to
01:09join us.
01:09You would see from the announcement the whole list of partners that came on board.
01:14That for us is a sign that the world is taking note that Africa is building.
01:19And people want to be part of that build out.
01:23You know, we've always said that Africa's future has to be built.
01:27You know, it cannot be wished, you know, and we're focused on execution to make sure that
01:33we deliver.
01:34Can you can you speak a bit about the makeup of the funders?
01:38Because quite, quite a large proportion come from Asia and also the Middle East to a certain
01:43extent.
01:43How, how, how did those factor into what we see with the syndicated loan?
01:49That's a very good question.
01:50You know, so we typically have a funding base as diverse.
01:53You know, we have European banks, we have African banks, we have Gulf banks, we have Asian banks.
02:00But in this round, we saw a lot more Asian banks, you know, have banks from China, from
02:07Hong Kong, you know, from Korea, you know.
02:11So again, it's just people taking note that Africa is building and people want to be part
02:19of that Africa build.
02:20You know, Africa has, you know, a rare opportunity, you know, in which all the mega trends, global
02:28mega trends, you know, converge, you know, in Africa.
02:32So Africa is a lot more relevant now because Africa has what the world needs.
02:39So people want to be part of that story, which is why they're looking at how to deploy capital into
02:45Africa. And we've showed up as a credible, reliable partner, you know, to work with.
02:52You know, early this year, we've got a ratings upgrade, you know, on top of our already investment
02:57grade rating from Moody's, we have S&P now with the ratings upgrade.
03:04So all of that combined to make us very appealing for international capital to flow into Africa.
03:10And we also have a track record for execution. You know, we've focused the minds of our teams
03:18and of our partners. The development is really more around mindset and execution.
03:26And we want to build that mindset of building, you know, and executing.
03:31What does that proportion of Asian investors signal to you, Sumaila?
03:35Have you made a concerted effort to seek other partners outside of the investors that
03:40you've traditionally had? So we've always had partners across the globe. Traditionally,
03:46you know, we've always had, you know, partners in America, partners in Europe,
03:51partners in the Gulf, partners in Asia. We've always had partners. What we see now is increasing
03:59interest from all across, you know, the landscape for partnership. But we see a lot more from Asia,
04:07no doubt about that. They're a lot more engaged, also from the Gulf. You know,
04:13we've had, you've covered our other issuances, our Sukuk, Morabaha, sustainability-linked notes,
04:20all from the Gulf. You know, so we, in fact, our first billion dollar syndication was done out of the
04:26Gulf.
04:26So there's a lot of interest, and they are all located there as well, and also located here in London.
04:32So it's the London branches of all of these international banks that we've worked with.
04:37What does the timing say about the current environment? Because a lot of discussion is around
04:43the volatility that we're seeing in capital markets. We're in the middle of a crisis in the Middle East,
04:48and yet you're saying you're still seeing interest and that capital is actually being deployed. Is that
04:53correct? Definitely. So again, you know, people are looking for growth. You know, Africa is growth.
05:02Africa is not a continent of the future. It's a continent of the present. We have the fastest urbanizing
05:10cities. We have fastest growing population. We have young demographic. You know, we have abundant
05:17mineral resources. We have abundant energy resources, all of which are required for, name it,
05:25energy transition, energy security, food security, you know, the digital revolution, technology. All of
05:34what is required for those mega trends are in Africa. So there's a lot of interest to deploy capital into
05:41Africa. And more importantly, Africa is building. You know, I keep saying that it's not just about
05:47the promise. It's about what's happening. You know, the Danguche refinery is being obscured to the
05:53largest refinery in the world. You know, it's moving from 650,000 barrels per day to 1.4 million
05:59barrels per day. They're building the largest fertilizer platform, moving from 3 million tons to 9 million
06:04tons in Nigeria and building an additional 3 million tons in Ethiopia. A few weeks ago, we talked about
06:10a regional refinery in East Africa. You know, I know there's a debate now around where it's going to
06:18be sited, but the concept of the refinery remains viable and remains valid. From our State of Africa
06:24infrastructure report, we showed how that is a huge growth area and why there's a need to
06:29build a refinery in that space. We also have a pipeline of several fertilizer projects. You know,
06:34all of this, you know, projects speak to Africa building. You know, and when Africa is building,
06:40you know, there will be deployment, you know, of funds to support that. More importantly, there's
06:46also African capital that's also seeking, you know, pathways to development where in various conversations
06:54with pension funds, you know, in East Africa, in South Africa, in Nigeria, in Cote d'Ivoire, Kenya,
07:02you know, on how to create more structured intermediation products and pathways for them to
07:10move beyond just investing in treasuries and outside the continent, you know, to invest in Africa.
07:17So from the Gulf perspective, you've not seen a curtailing or stalling of capital raise?
07:23In fact, we actually see more interest from them, you know. Since the war in Iraq?
07:28Yes, because I mean, so just look at the map. You know, Africa is just strategically located,
07:35you know, and Africa has huge resources as well, you know, has huge oil and gas resources,
07:42huge arable land. So food security now is a challenge and people see the advantage of Africa.
07:50The minerals in Africa, you know, tell a different story now and everybody wants to participate,
07:56you know, which is why as Africans, we must be deliberate around what this participation means.
08:02You know, we want to ensure that we are creating jobs for our people, want to ensure that we are
08:09building the infrastructure and the systems that allow for transformation to take place on the
08:14continent. We have to ensure that we're seizing the moment and the opportunity to transform
08:19our resources into jobs for our people. What does that mean for additional raises then for the AFC in 2026?
08:29So we have a target. This takes us, you know, about 50% of the target, you know, or more,
08:40you know, and then we see other sources, you know, so definitely we are doing more capital raises.
08:47Are you confident that you'll be able to achieve that 2026 goal?
08:50Always, always. We've never been unable to raise capital. Don't forget we're an investment-grade
08:54organization, you know, and Africa itself has capital, so we are raising capital.
08:59What does that mean in terms of turning some of the projects that you already have,
09:04the IPOs, and really scaling them up? What's the next step of the AFC's involvement on that front?
09:11So we continue to focus on, you know, developing, you know, projects, making them bankable.
09:17We keep focused on how to scale what has worked. You know, I always tell people that the story
09:25behind Angoche's success is that it can be scaled, and we need to seek to scale that. The story behind
09:33Arise IIP, you know, is that it can be scaled, and we should take to scale that. The story behind
09:39the Kamua Kakula Copper Complex is that it can be scaled, you know, and we should support that.
09:46You know, Semandu in Guinea, this can all be scaled, and we should replicate that. So Africa
09:53is the continent of now. It's not the future. It's now. And we should all focus on converting,
09:59you know, all the abundant resources into jobs and prosperity for our people. You know, I mean,
10:06at the end of the day, we're talking about Africa 2050, by which time we'll have a quarter of the
10:11world's population. That's two and a half billion people. So the question now is, how are we going
10:16to feed two and a half billion people? What energy systems will support one half billion people? What
10:21connectivity would support one half billion people? Where will they live? You know, what, you know,
10:29technologies would emerge? You know, how would the people be trained? So we need to address all of
10:35these questions, and the time to do this now, not then. You know, it's to do it now, because 24
10:40years
10:40is not very, it's not a distant future. It's just around the corner. And we need to be ready now.
10:45We
10:45need to build the systems now to ensure that we can create prosperity and dignity for two and a half
10:50billion people. And then really quickly, I mean, at the IPOs, are you looking at some IPOs of some of
10:54the
10:54projects that are in the pipeline? Definitely. I mean, the IPOs, I don't want to talk about them,
11:00but we all know the IPOs are on the cards. And we're, of course, clearly supportive. And more
11:05importantly, we've created a technology fund, you know, which seeks to accelerate Africa's technology
11:11adoption and digital revolution. And we're scaling that fund. We started with 100 million, but we're going
11:19to scale that. You know, some of our first projects are the Etana Digital Free Zone Authority,
11:24you know, the Future Africa Funds, the Light Rock Funds that we're all supporting, and several other,
11:31you know, technology initiatives have come to us. What we want to do is to create our own versions of
11:37Silicon Valley in Africa, you know, starting with Lagos, where we have Digital Free Zone Authority that
11:43we're developing. And we seek to replicate in Nairobi, in Cairo, in South Africa, all across Africa.
11:55Maybe just finally, Samayla, we were talking about the East Africa refinery. Of course, the AFC is very
12:00involved in some of those negotiations. What can you tell us about the progress on that front?
12:06I think the progress, the first progress is the convening of the two heads of states,
12:10the agreement to work together with us on this. And of course, Langotiri refineries and petrochemical
12:17plants, you know, sponsorship of the initiative. I know that there's been further discussions with
12:25the president of Uganda, in Uganda, and there's been a declaration of support publicly that they're
12:33supportive of this refinery. And I know that there are ongoing conversations around the most appropriate
12:40location, you know, for the family, bearing in mind that this is a significant undertaking, where
12:46there's going to be a lot of equipment, you know, so you need the right kind of deep seaport to
12:53support
12:53this. And I'm sure that there will be decision made based on what is most viable, what is most prudent,
12:59and where we would have the best conditions, or where we can create the best conditions, because we have to
13:06create the conditions, you know, to support such an elaborate investment that seeks to, you know,
13:15provide energy security for the region, not now, but into the future. I also know that there is interest
13:21from several partners, I can mention, that have approached us that they want to be part of that
13:26initiative. Global investors, or what does that mean?
13:29Yeah, global investors.
13:31So, so would you say that is on track for some sort of agreement this year? Where,
13:36where are you at in terms of negotiations, not just with the investors, but also with
13:40this project actually being put in place?
13:42So, we have some meetings next week, you know, by the time we've concluded the meetings,
13:47then we'd have more clarity, and we can share with you.
13:51Okay, I'll leave it there. Can you tell us the location of the refinery?
13:55Again, it's, if you recall from the conversations, there were two options. There was an option of
14:03Tanzania, Tanga port, and then there was also the option of Mombasa, or other ports, or other
14:10locations along the coast. The key requirement is a deep-sea port, you know, and the sponsor,
14:18Elijah Elikot Angote will make that call, you know, based on his team's evaluation of the most viable
14:26location. So, I'm sure that he'll advise, you know, soon once that decision is made.
14:31But the AFC will be involved in one way or another?
14:34We are already involved, you know, and we'll continue to remain involved.
14:37So, let's get started.
14:37Okay.
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