The Africa Finance Corp (AFC) has stated that the growing spate of military coups in the continent is threatening investment inflow into the continent as investors are concerned about the political stability of the region.
Speaking to Bloomberg, the Chief Executive Officer of Lagos-based African Finance Corp- a development finance institution said the group had halted project in one country and currently delaying the listing of other African projects because of the democratic setbacks witnessed in the region in recent times.
Samaila Zubairu noted that the rising trend of military takeovers is worrying and more worrying is the popularity of coup d’etat among the populace.
In her words,
- “very worrying, especially with the seeming appeal of the changes to the mass populace,”
The proposed project listing is to be postponed
Last year, AFC unveiled its intentions to generate capital and finance infrastructure development across Africa by offering shares of its projects on stock exchanges in London and the United Arab Emirates. Among its diverse investment portfolio are holdings in port facilities located in Gabon, Mauritania, and Ghana, as well as power plants situated in Ivory Coast and Djibouti.
However, the CEO stated that the listings will be postponed due to the region’s current political instability, despite ongoing efforts to significantly enhance the project values before their public offering.
- “Given the ongoing political turmoil and coups occurring in Africa, this is not the opportune moment,” remarked the CEO.
Established in 2007, AFC is headquartered in Nigeria and is jointly owned by African governments, banks, and private equity funds. The institution operates across at least 40 countries within the African continent.
Rising trend of coups in Africa
Since 2020, sub-Saharan Africa has witnessed a total of nine coups, forming a cluster of nations spanning from the Atlantic Ocean to the Red Sea. Gabon became the latest addition to this list just last week, as military forces ousted President Ali Bongo from office following a contentious election.
In July, the Presidential Guard in the Niger Republic overthrew President Muhammed Bazoum- an action that was condemned by the international community and threats of military intervention were issued.
