Shenouda shares insight into AFC’s investment strategies

The Africa Finance Corporation (AFC) is gearing up to boost investments in Africa's supply chain and mineral deposits to enhance the country's export potential. Sameh Shenouda, the Chief Investment Officer of the AFC, revealed in an exclusive interview with CNBC Africa that the institution is set to focus on key sectors in the short to medium term to drive economic growth and development across the continent. Shenouda highlighted the core themes guiding the AFC's investment strategies, which include climate, integrated supply chain, industrialization, food security, technology, and supporting governments. In 2023, the AFC made a record 20 investments, with significant transactions such as the acquisition of a company holding seven wind assets in various parts of Africa. This move solidified the AFC's position as the largest renewable energy player in Africa. Moreover, the AFC is committed to beneficiation, adding value to raw materials within the continent. For instance, the corporation invested in a working capital facility and a refinery to process oil locally instead of exporting crude and importing refined products. Similarly, the AFC is enhancing value addition by refining manganese in Japan, exporting ferro-manganese instead of raw manganese. Additionally, the AFC has ventured into technology investments while emphasizing the importance of recycling funds. Shenouda emphasized the significance of exiting projects after development to reinvest in new ventures. Notably, the AFC successfully divested its port investment in Ghana to Yirport, a prominent global operator. Looking ahead, Shenouda outlined the AFC's strategic outlook for the upcoming year, focusing on reinforcing existing themes like supply chain development and enhancing Africa's raw material value chain. The corporation aims to prioritize critical minerals to fuel sectors like battery and electric vehicle production. Shenouda underscored the importance of advancing food security and ensuring robust infrastructure support for sustainable economic growth. Moreover, Shenouda addressed the potential of African capital to drive transformative projects on the continent. He stressed the significance of mobilizing funds from African insurance companies, sovereign funds, and pension funds towards investments in Africa. By showcasing successful projects and demonstrating actual versus perceived risks, Shenouda believes that redirecting a small portion of these funds to Africa could have a monumental impact on the continent's infrastructure sector. When discussing the role of African governments and institutional investors, Shenouda emphasized the value of partnerships and track records in driving investments. By illustrating the success of projects like Arise, an AFC subsidiary boasting operating industrial zones, governments and investors are encouraged to participate in transformative initiatives. Shenouda cited a case where a president expressed interest in replicating AFC's industrial zone success in his country, showcasing the tangible impact of partnering with credible institutions like the AFC. In conclusion, the AFC's commitment to strategic investments in pivotal sectors aligns with the broader goal of fostering economic growth and development in Africa. By prioritizing value addition, technology, and sustainable practices, the corporation stands poised to make a significant contribution to Africa's burgeoning economy.