Africa Finance Corporation (AFC) has exited its investment in Ghana’s Takoradi Port in a move it has hailed as testament to its ability to attract international third party capital and “exit strategic infrastructure assets built by derisking through AFC’s unique project development and construction offering”.

In 2019, AFC committed to invest up to $138m in equity and debt for the Takoradi Port Expansion Project. The project, which is approaching the operational phase, reduces the cost of imports and exports to and from the western and central regions of Ghana and neighbouring landlocked countries by modernising a container and multipurpose terminal under a 25-year concession for its design, engineering, financing and construction.

AFC is a multilateral financial institution, created by African sovereign states to provide pragmatic solutions to Africa’s infrastructure deficit and challenging operating environment. Established in 2007, the role of the AFC, as determined by member states, is to be a vehicle to catalyse and aggregate investment into infrastructure on the continent through innovative approaches. To achieve its goals, AFC partners with governments and investors to transform ideas into bankable projects. The key point is to promote projects that make an impact, are viable and return profits to investors.

In another recent project, the Red Sea Power wind farm in Djibouti launched in September, the AFC worked with the government to develop the business, getting a power purchase agreement in place with the local utility and getting the World Bank’s Multilateral Investment Guarantee Agency to further de-risk the investment.

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AFC has sold its 35% equity investment in Atlantic Terminal Services Limited (ATSL), the concessionaire for the expansion of Takoradi Port to Yilport Holding, a subsidiary of Amsterdam and Istanbul-based Yildirim Group.

Ibistek and Ghana Ports & Harbours Authority remain as shareholders in the project. AFC will continue to be lender to the project, fully committing to ensuring its success.

Samaila Zubairu, President & CEO of Africa Finance Corporation said, “This exit marks a significant milestone for AFC’s impact on the continent and we take pride in our pivotal role in driving the implementation and de-risking of the Takoradi Port Expansion. The project is reshaping West Africa’s economic landscape and partnering with a reputable investor like Yilport Holding aligns with our mandate to catalyse the inflow of global investment into Africa to transform supply chains, create local jobs and enable resource beneficiation.”

“The acquisition of a stake in the Atlantic Terminal Services through AFC’s valued partnership marks a momentous occasion for Yilport Holding,” said Robert Yuksel Yildirim, Chairman and CEO of Yilport Holding. “This serves as a strategic gateway for us to establish our presence in the African market, and it aligns seamlessly with our commitment to fostering world-class logistics and trading hubs on an international scale.”