Arranged by Bank of Africa UK PLC, the loan brought together seven key Indian banks, including five first-time participants: State Bank of India, Canara Bank, Bank of India, Indian Bank and UCO Bank. This transaction not only exemplifies AFC’s growing influence in global capital markets, but also emphasizes the increasing relevance of Indian financial institutions in supporting Africa’s development goals. The funds will be strategically deployed to drive transformative projects across the continent, accelerating economic development and industrialization.

India's Growing Role in Financing Africa's Energy Transformation

The successful completion of this syndicated loan highlights a broader trend: India’s burgeoning role as a financial partner for Africa. In recent years, Indian investment in Africa has expanded significantly, spanning sectors such as energy, infrastructure and manufacturing. Over the past five years, Africa has been the largest regional recipient of Indian greenfield CapEx, with India also serving as the second-largest lender to the continent. In 2023, a consortium of Indian conglomerates pledged $14 billion toward Nigeria, focusing on investments in a fertilizer and petrochemical facility in Rivers State, a steel plant, renewable energy projects and the expansion of communication networks. As Africa seeks to bridge its infrastructure gaps and achieve energy security, India has emerged as a key partner offering viable solutions and strategic pathways for growth. The participation of first-time lenders in AFC’s syndication also indicates a growing appetite for African risk when presented through credible, well-structured opportunities.

The timing of the transaction aligns with growing global attention on Africa’s energy transition, driven by a surge in clean energy investments, oil and gas developments and ambitious energy access projects. Indian involvement can be catalytic, bridging the continent’s financing gap for energy projects and driving innovative approaches to resource management and sustainability. Moreover, AFC’s recent syndication will play a crucial role in meeting Africa’s energy needs, demonstrating the importance of flexible, long-term financing. By tapping into India’s financial markets, AFC has diversified its funding base and deepened its capabilities to drive high-impact energy projects. From solar power installations to large-scale infrastructure developments, the proceeds of this syndicated loan will empower African nations to harness their natural resources and accelerate industrial growth, creating jobs and driving economic resilience.

Connecting Investors at the Invest in African Energy Forum

The partnership between AFC and Indian lenders arrives at a pivotal moment for international energy cooperation. At the upcoming Invest in African Energy Forum, taking place in Paris, next May, Indian investors, companies and financiers have the opportunity to participate in strategic discussions designed to foster collaboration and accelerate investment into Africa’s energy sector. The forum serves as a crucial platform for industry leaders and policymakers to explore opportunities and align strategies for driving energy development on the continent.

AFC’s transaction could serve as a blueprint for future India-Africa partnerships, demonstrating that mutual trust, strong credit ratings and innovative financial models can unlock sustainable growth. As Indian capital flows into Africa, there is enormous potential to reshape the continent’s energy landscape and strengthen cross-continental ties in ways that are mutually beneficial. By deepening their presence in Africa, Indian financial institutions are becoming integral players in the continent’s energy growth.

IAE 2025 is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 13-14, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit www.invest-africa-energy.com. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.