Africa Finance Corporation (AFC), the leading infrastructure solutions provider in Africa, has successfully exited its 35% equity investment in Atlantic Terminal Services Limited (ATSL), the concessionaire for the expansion of Ghana’s Takoradi Port. This strategic move underscores AFC’s capacity to attract international third-party capital and highlights its unique approach to project development and construction. The project, nearing operational phase, is set to enhance trade and connectivity in the western and central regions of Ghana and neighboring landlocked countries.
Key Points:
- Project Background:
- AFC initially committed up to US$138 million in equity and debt for the Takoradi Port Expansion Project in 2019.
- The initiative aims to modernize a container and multipurpose terminal under a 25-year concession, reducing import and export costs and revitalizing the western region of Ghana.
- Exit Strategy:
- AFC has successfully exited its shareholding in the project while continuing its role as a lender to ensure its ongoing success.
- Ibistek and Ghana Ports & Harbours Authority retain their positions as shareholders in the project.
- Economic Significance:
- Takoradi Port is a crucial economic hub in Ghana’s Western Region, supporting national economic growth and regional connectivity.
- It offers efficient links to the Takoradi region, known for significant agricultural, manufacturing, and industrial activity.
- Regional Impact:
- The project aligns with Ghana’s national development plan to revitalize the western region and enhance overall efficiency and competitiveness.
- AFC’s Role and Impact:
- AFC played a pivotal role in driving the implementation and de-risking of the Takoradi Port Expansion, contributing to West Africa’s economic transformation.
- Yilport Holding’s Involvement:
- Yilport Holding, a global ports and container terminals operator, has acquired a stake in Atlantic Terminal Services through its partnership with AFC.
- This marks a significant milestone for Yilport Holding, providing an entry point into the African market and aligning with their commitment to establishing world-class logistics and trading hubs.
Conclusion: AFC’s successful exit from the Takoradi Port Expansion Project reflects its ongoing commitment to driving impactful infrastructure development in Africa. The project’s positive influence on West Africa’s economic landscape is a testament to AFC’s role in catalyzing global investment and transforming supply chains, creating local employment, and enabling resource beneficiation. This strategic move, in collaboration with Yilport Holding, sets the stage for enhanced connectivity, trade, and economic growth in the region.
