AFC reports record 22.8% increase in revenue to $1.1bn in FY'24

The African Finance Corporation (AFC) has reported a record 22.8% increase in revenue to $1.1 billion in the fiscal year 2024. This growth was attributed to improved asset yields, prudent cost-of-funds management, and sustained traction in advisory mandates. The AFC's net interest income also surged by 42.5% to $613.6 million in the same period. Ayotunde Anjorin, the Chief Financial Officer at the Africa Finance Corporation, highlighted the exceptional performance of the organization, emphasizing that 2024 was their strongest year to date. Anjorin noted that since its inception in 2007 with a capital of $1.1 billion, the AFC has seen remarkable growth, reaching the same revenue figure after approximately 18 years of operation. The profitability of the AFC was also commendable, with profits growing by 19.5% to $3.93 million. The robust growth in annuity revenues, particularly in net interest income, played a significant role in driving the overall success of the organization in 2024. Moreover, the total assets of the AFC increased by 16.7% to $14.4 billion, fueled by strong growth in project financing and investment security. The strategic management of the cost of funds was a crucial factor in the AFC's financial performance. Anjorin explained that the organization employed a dynamic balance sheet optimization strategy, leveraging its investment-grade status to access diversified funding sources globally. By matching assets with suitable liabilities and ensuring competitive cost-of-funds, the AFC maintained financial stability and supported its project investments. Anjorin highlighted the significance of the AFC's liquidity coverage ratio, emphasizing the institution's conservative approach with a coverage of over 34 months in 2024. This prudent risk management approach underlined the AFC's credibility and financial resilience. The significant uptick in fees and commission income, reaching five-year highs with a growth of 55% to $110 million, reflected the asset velocity and structuring capabilities of the AFC. The organization's ability to disburse over $2 billion in assets in 2024, coupled with effective advisory services, drove fee-based income. Looking ahead to 2025, Anjorin discussed the AFC's strategic focus on attracting new institutional investors, including non-African stakeholders, to enhance collaboration and investment opportunities. By aligning with partners who share their vision for Africa's development, the AFC aims to strengthen its market presence and benefit from diverse expertise. Despite external risks and market uncertainties, Anjorin expressed confidence in the AFC's ability to navigate challenges by leveraging its global funding network. As Africa's premier infrastructure-focused finance institution, the AFC remains committed to driving economic growth and advancing regional trade through initiatives like the African Continental Free Trade Area (AfCFTA). The AFC's resilient financial performance in 2024 and strategic outlook for the future position the organization as a key player in Africa's development landscape.