Africa Finance Corporation (AFC) Invests in Dhamana Guarantee Company to Catalyse Local Currency Infrastructure Financing in East Africa
LAGOS -- Africa Finance Corporation (AFC) (www.AfricaFC.org), the continent’s leading infrastructure solutions provider, today announced its equity investment in Dhamana Guarantee Company Limited (“Dhamana”), a credit enhancement facility established to unlock long-term, local-currency financing for infrastructure projects across East Africa. The investment forms part of AFC's approved commitment of up to US$20 million in capital, with an initial tranche of US$10 million in Dhamana’s core capital.
Dhamana is designed to provide guarantees that enable infrastructure developers access domestic debt capital markets - particularly pension funds and institutional investors - on improved terms, while also supporting financial institutions to deepen financial inclusion. Dhamana’s operating model builds on the successful framework already implemented by similar Credit Enhancement Facilities in West Africa, notably InfraCredit Nigeria, where AFC is a founding shareholder.
Commenting on the investment, Banji Fehintola, Executive Board Member and Head of Financial Services at Africa Finance Corporation, said:
“Dhamana represents a strategic opportunity to deepen domestic capital markets in East Africa by linking long-term institutional savings to bankable infrastructure investments. Building on our experience with InfraCredit in Nigeria, AFC is pleased to support the establishment of another credit enhancement facility focused on East Africa that will help unlock local-currency financing, strengthen investor confidence, and accelerate infrastructure delivery across the region.”
Also commenting on the investment, Christopher Olobo, Chief Executive Officer of Dhamana Guarantee Company, said:
“We are delighted to welcome Africa Finance Corporation as a shareholder in Dhamana. AFC’s investment marks a major institutional endorsement of our mandate to unlock long‑term, local currency financing for infrastructure and priority sectors across East Africa. Drawing on AFC’s deep experience with credit enhancement platforms such as InfraCredit Nigeria, this partnership strengthens our capital base, governance and strategic capability as we scale our guarantee operations. We look forward to working closely with AFC to mobilise domestic institutional capital, deepen local debt markets, and deliver transactions that combine strong risk discipline with measurable developmental impact.”
Dhamana is backed by a strong consortium of development partners and institutional investors, with AFC expected to play an active role in governance and strategic oversight. The Company’s pipeline spans multiple infrastructure sectors across East Africa, with a focus on transactions that deliver measurable developmental impact while meeting strong risk management and governance standards.
The investment aligns with AFC’s broader strategy to support credit enhancement facilities across Africa, recognising their role in mobilising domestic capital, deepening local debt markets, and improving the financial sustainability of infrastructure projects.
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