(Business in Cameroon) - The Africa Finance Corporation (AFC) has two new shareholders, including Cameroon’s public pension fund, the CNPS. The Pan-African Corporation announced the news on June 20, 2023.
"We warmly welcome CNPS and SBM Capital Market Securities as investors in AFC. This step is evidence of AFC's role as a preferred partner for infrastructure investment on the continent, to deepen economic integration, enable import substitution, and develop Africa's manufacturing and industrial capacity," commented Samaila Zubairu, CEO of AFC.
While the investment’s amount and the stake acquired by the CNPS are yet to be known, the move should, according to the pension fund, help it achieve its goal of bringing its annual return on financial investments to around XAF40 billion by 2026. "For the next five years, we intend to double the [financial investment income from 2021]," said CNPS boss, Alain Olivier Mekulu Mvondo Akam, in an interview with Cameroon Tribune, a state-owned newspaper. He referred to the increase in return on investments from only XAF7 billion in 2017 to XAF20.5 billion in 2021.
Last year, gains from financial investments stood at XAF24.2 billion, thus up by 18% YoY, according to official data from CNPS. They are expected to increase further in 2023 following CNPS's recent participation in the capital of Chanas Assurances Vie, another public pension fund investment. CNPS has joined the insurance company's shareholding alongside the National Hydrocarbons Company (SNH), the state's entity responsible for oil and gas exploration and production. These two state-owned enterprises have also recently offered to buy the assets of British investment fund Actis in ENEO, Cameroon’s power utility.
Established in 2007, the Africa Finance Corporation (AFC) is a pan-African financial institution that addresses the continent's infrastructure deficit.