AFC makes US$100 mln investment in Chad’s SHT - CNBC Africa

AFC makes US$100 mln investment in Chad’s SHT

Western Africa

by Trust Matsilele 0

Africa Finance Corporation makes US$100 mln in Chad’s SHT. PHOTO: AFC

Andrew Alli, chief executive officer of the Africa Finance Corporation (AFC) told CNBC Africa that, GLENCORE was helping to facilitate part of the acquisition of oil fields in Chad by SHT, a Chadian government oil company following Chevron's exit.

“We are a strong supporter of indigenisation of natural resources assets across Africa, for that reason we have supported the divestment of oil and gas assets in Nigeria,” Alli said.

(READ MORE: AFC to fund infrastructure development in Africa through new facility)

“We are glad to diversify into Chad which has been a member country since 2012 and we are glad to make a substantial investment of 100 million US dollars into this deal.”

Alli however, noted that conflicts in Chad were a concern to everyone involved in doing business in the continent though this would not deter his organisation.

Alli added that AFC was poised for growth factoring that, the company’s operating profit for 2013 was 81.1 million US dollars rising from 76 million US dollars the previous year.

(READ MORE: AFC awarded investment grade rating by Moody's)

AFC’s total comprehensive income rose to 87.3 million US dollars from 83.2 million US dollars the previous year.

“We are pleased with our results, as the previous year we had grown our profits by 2.5 times from 34 million dollars to just over 80 million. We see last year as a period of consolidation and we are seeing acceleration in what we are doing,” said Alli.

“This year alone we have booked something like half a billion dollars in new investments including the one in Chad and we are looking to doing the same in the second half of the year, so we expect to see some big acceleration.”

Alli said that AFC’s strong points came from a variety of sectors like the company’s loan portfolio in the oil and gas sectors and new investments in power sector particularly around privatisation which is feeding into the company’s profitability.

“We are also part of the US government’s power Africa initiative where we are experiencing acceleration as well.”

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Alli added that, AFC has benefited from oil and gas as it has always been a good source of profit.

AFC has investments in heavy industry such as the company’s investment in the leading cement company, ARM in East Africa.

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