Table of Contents
Key Points:
- Rawbank, the largest bank in the DRC, makes its first equity investment in Africa Finance Corporation (AFC).
- This strategic move follows the DRC Government’s investment in AFC two years prior, marking a significant milestone.
- AFC has mobilized more than $200 million in DRC investments, with a $850 million pipeline in key sectors.
Rawbank, a financial services group owned by the Congolese Rawji family, has made its first equity investment in the Africa Finance Corporation (AFC).
This comes two years after the DRC Government made a similar investment in the multilateral institution.
Rawbank’s investment
The investment marks Rawbank’s inaugural equity stake in a multilateral financial institution. Mustafa Rawji, CEO of Rawbank, highlighted the significance of this milestone, stating,
“It is an important step for us as our first equity investment in a multilateral financial institution, and we are confident that it will strengthen our bank’s financial capabilities, enabling us to finance large-scale projects that can transform the DRC’s economic landscape.”
AFC has mobilized $200 million in investments in DRC across key sectors such as natural resources, power, transport, and heavy industries. The corporation also holds an investment pipeline of over US$850 million in the near- to medium-term.
Its diverse equity investor base includes countries like Benin, Botswana, Ivory Coast, Egypt, and Seychelles, as well as pension funds, insurance firms, and the Turk Exim Bank.
Rawbank and AFC’s collaborative goals
Rawbank, a subsidiary of the Rawji Group, operates within a conglomerate with interests in real estate, manufacturing, import and distribution, and engineering.
In June, Rawbank signed a $100-million trade finance facility agreement with Afreximbank to boost trade flows into and out of the DRC.
The AFC, created in 2007 by African states, focuses on financing infrastructure projects across the continent. The corporation combines industry expertise with financial and technical advisory, project structuring, development, and risk capital.
Samaila Zubairu, president and CEO of AFC, emphasized the importance of such investments, stating,
“It is critical for African institutions to play a catalytic role as agents of transformation on the continent, and these equity investments support AFC’s commitment to catalysing economic growth, value accretion, and industrial development in Africa.”
The size of Rawbank’s equity investment in the AFC has not been disclosed.
