African infrastructure and industrial development financing group, the Africa Finance Corporation (AFC), has, in order to strengthen its risk management capabilities, created a new subsidiary company, AFC Captive Insurance Company (AFC Captive). Wholly-owned by the AFC and based on the British Overseas Territory of Bermuda, AFC Captive will also support the continuing expansion of its parent group’s infrastructure financing activities across the continent.
“Africa’s infrastructure needs demand innovative processes that allow us to mobilise more capital and extend financing capacity across the continent,” highlighted AFC president and CEO Samaila Zubairu. “AFC Captive is an important addition to our platform, enhancing our ability to manage risk, deploy capital more efficiently, and scale investment into the infrastructure and industrial projects that will drive long-term growth and economic transformation.”
AFC Captive is supported by up to $30-million in equity capital. At first, it will supply insurance coverage for loans made by the AFC to its counterparties, thereby permitting the group to more efficiently retain and manage risk, while also, over time, reducing its dependence on external commercial insurance markets.
