Africa: Assembly Approves AFC Charter

National Assembly members Monday considered and ratified the Charter of the Africa Finance Corporation, paving the way for The Gambia's membership of the Corporation.

This motion was laid before the House by Hon. Abdou Kolley, minister of Finance and Economic Affairs, at the Assembly Chambers in Banjul. Laying the motion, Minister Kolley said even though governance and macroeconomic conditions have improved across much of Africa in recent years, the region's share of global private infrastructure investment has reminded relatively small.

He noted that despite the substantial demand for infrastructure assets throughout the African continent and the attractive returns on investment in infrastructure in Africa relative to more developed markets, there have been few successful infrastructure projects. "One of the reasons for this has been the lack of specialised institutions with project structuring expertise and available risks capital," he added.

He explained that it was to fill this critical void that the founders of the Africa Finance Corporation (AFC) established the organisation in 2007 whilst the AFC is an international organisation established by the treaty between the sovereign states with an authorised share capital of US$2 billion. He said that it was established by twin legal instruments, with all the rights, privileges and immunities conferred upon international entities.

Minister Kolley further stated that the Africa Finance Corporation brings wealth of project structuring experience and risk capital to the market. "The corporation has developed key guiding corporate governance principles, bench marked against global investment banking institutions, and has a tight and well-controlled cost base. It has a lean organisation structure, designed along product, industry and advisory business units and functions," he explained further.

He disclosed that the AFC has been built around four core pillars such as markets fostering private sector solution to Africa's development; driving Africa's competitiveness and industrialisation; catalysing private sector participation in Africa's infrastructure and facilitating Africa's private sector access to capital.

The Finance and Economic Affairs minister also told the deputies that the Corporation's business development process is founded upon a system of proactively, creating, acquiring and managing infrastructure, industrial and financial assets, adding that its business execution focuses on providing anchor risk capital, playing a catalytic role, providing advisory services, and forging partnerships. He further revealed that the AFC is headquartered in Lagos, Federal Republic of Nigeria, and has signed a Headquarters Agreement with that government.

He continued: "Membership in the Africa Finance Corporation does not require monetary contribution by the government of the Gambia. Rather, The Gambia's membership in AFC would enable the Corporation to legally operate in the country under the mandate of the AFC Charter and eligible to diplomatic privileges and the management of AFC can work closely with public and private sector to enhance the bank ability of projects, and access to funds."

He said that AFC shareholders include the various African Financial Institutions (47.6 percent), the Central Bank of Nigeria (42.5 percent), and several industrial and corporate shareholders (9.8 percent). According to him, the African financial institutions promote synergy between African banks, strengthening local support and partnership, and ensuring proximity to projects and transactions flows.

Hon. Netty Baldeh, National Assembly member for Tumana seconded the motion saying that the Charter would go a long way to answer many questions. Hon.Fatou Mbye, the deputy speaker, congratulatedMinister Kolley for tabling what she described"an important motion". She added that The Gambia, though small in size, is very stable both in terms of peace and economic growth.

Other speakers included Hon. Fakabary Tombong Jatta, Majority leader and NAM for Serrekunda West; and Hon. Lamin Kebba Jammeh, National Assembly for Illiasa.