AFC Invests in East Africa’s Oil and Gas Downstream Player for More Efficient Petroleum Transportation
Africa Finance Corporation (AFC), a prominent infrastructure solutions provider in Africa, has announced its investment of $95.25 million in Mahathi Infra Uganda Limited, a major oil and gas downstream player in East Africa. The investment will fund the construction of two self-propelled barges that will operate on Lake Victoria, offering a more efficient and environmentally friendly alternative to traditional trucking for transporting petroleum products.
The project aims to transform petroleum transportation in Uganda by reducing costs, transport time, and carbon emissions. The investment will also support the development of enabling infrastructure, including storage tanks, truck loading bays, a jetty, and a parking lot. The initiative is expected to replace around 100,000 truck journeys annually, significantly easing road congestion and mitigating challenges such as product adulteration, theft, and accidents.
The self-propelled barges, designed to international Environmental & Safety standards, are expected to reduce greenhouse gas emissions by over 95% compared to traditional truck transportation. Additionally, the project is anticipated to generate employment opportunities and economic growth, with a workforce expansion from 22 to 100 employees upon completion.
Mr. Samaila Zubairu, President & CEO of AFC, emphasized the significance of this investment in addressing Africa’s infrastructure challenges and contributing to sustainable economic growth.
The project’s impact extends beyond Uganda, serving as a foundation for future expansions into other landlocked countries around Lake Victoria. AFC’s investment aligns with its mission to support private sector-led infrastructure development across the continent.
About AFC: Established in 2007, AFC focuses on financial and technical advisory, project structuring, project development, and risk capital to address Africa’s infrastructure development needs. It has invested $11.5 billion across Africa since inception, playing a pivotal role in crucial infrastructure sectors like power, natural resources, heavy industry, transport, and telecommunications.