Africa Finance Corporation (AFC) has established a new insurance subsidiary aimed at strengthening its risk management and allowing it to deploy more capital into infrastructure and industrial projects across Africa.
The new Bermudian company, AFC Captive Insurance Company Ltd (AFC Captive), is expected to give AFC greater control over insurance risks linked to its lending activities while reducing its reliance on external commercial insurance markets over time. The move could also improve the Corporation’s capital efficiency and create additional capacity to finance projects across the continent.
Backed by up to US$30 million in equity capital, AFC Captive will initially provide insurance coverage for loans extended by AFC to its counterparties. The arrangement will allow the Corporation to retain and manage more risk within its own platform while supporting the continued expansion of its infrastructure financing activities.
Building More Capacity to Finance African Projects
AFC Captive has been licensed as a Class 2 insurer in Bermuda, giving it room to expand beyond AFC’s own portfolio. Up to 20% of its underwriting capacity can be allocated to AFC affiliates and selected third parties.
The company is also expected to build its own investment-grade credit profile as it grows its scale and operating capacity. Its creation is supported by AFC’s existing strong credit position. The Corporation holds an A3 long-term issuer rating from Moody’s, one of the highest investment-grade ratings held by an African institution.
In January 2026, S&P Global assigned AFC an A long-term and A-1 short-term issuer credit rating with a Positive Outlook. This was the highest rating AFC had received from a major global ratings agency at the time.
AFC has also received renewed AAA domestic issuer ratings with stable outlooks from China Chengxin International Credit Rating Co. Ltd (CCXI) and S&P Global (China) Ratings. The ratings reflect continued confidence in the Corporation’s financial strength, liquidity, capital position and approach to risk management.
AFC President and CEO Samaila Zubairu said the new subsidiary responds to the need for innovative ways to increase infrastructure financing on the continent.
“Africa’s infrastructure needs demand innovative approaches that allow us to mobilise more capital and extend financing capacity across the continent,” Zubairu said. He added that AFC Captive would strengthen the Corporation’s ability to manage risk, deploy capital more efficiently and increase investment in infrastructure and industrial projects that support long-term economic growth.
Expanding Insurance Expertise Across Africa
Wola Asase, AFC’s Deputy Director and Head of Syndications, will manage AFC Captive as its Head and serve as a Director on its Board.
Asase said the subsidiary would give AFC greater flexibility when structuring and supporting transactions across its portfolio. “By using insurance more strategically, we can expand market capacity, improve capital efficiency and unlock financing for projects that may otherwise be constrained by limited or costly external insurance,” he said.
Beyond managing AFC’s internal insurance requirements, AFC Captive is expected to help the Corporation develop deeper insurance expertise and create tailored risk-mitigation solutions for infrastructure investment in Africa. Over time, the company could expand its services to a wider group of third-party clients.
AFC was established in 2007 to support infrastructure and industrial development across Africa through financial and technical advisory services, project structuring, project development and risk capital.
