AFC Posts $29m Profit


By Crusoe Osagie, 07.04.2010 


The has announced an operating profit of $28.7 million for the year 2009 amid the economic upheaval that shook the globe during the period. According to the results for the 12 months ended 31 December 2009, AFC recorded a 650 per cent increase in net profit from $4.2 million in the year 2008 to $28.7 million in 2009.Despite the challenging market environment, AFC finished with a significantly improved financial performance, compared to the 2008 financial year, the report said. Gross operating income for the 12 months ended 31 December 2009 was slightly lower that recorded for the 14 months ended December 2008. Net profit, however were significantly higher, up by 650 per cent to $28.7 million from $4.2 million in December 2008.



AFC credited its stability in the past year to prudent approach to risk management. AFC’s strong and well capitsalised balance sheet, positions us well to participate fully in the business of catalysing investments in the infrastructure projects of the continent. In addition, the corporation actively continues to seek means of expanding the impact of its balance sheet by partnering with various groups of lenders and investors across Africa, the corporation said. The institution said it would continue to implement a moderate investment strategy that is expected to help safeguard the corporation from the impact of the on-going uncertainty in the global financial markets. 



This strategy will also position AFC’s operation for improved short-term profitability, while keeping the corporation poised to take advantage of emerging opportunities and to benefit from the anticipated economic recovery,the corporation said. During the year, AFC led investors in the Main One Cable Company in the laying of the Main One submarine fibre optic cable system. The  project, which was described as landmark is a 7000-kilometre cable between Portugal, Ghana and Nigeria with branching units in Canary Islands, Morocco, Senegal and Cote d’Ivoire. 



It is expected to enhance West Africa’s connectivity to Europe and other parts of the world.  The second phase of the project will extend connectivity to South Africa.According to AFC, the Main One Cable system will deliver 1.92Tbps of high capacity bandwidth – equivalent to 10 times the available capacity of the existing fibre optic cable serving West Africa, and more than 20 times the satellite capacity currently available across Sub-Saharan Africa. 



As a pan-African financing institution, we are proud to be a partner in the Main One submarine cable project, an African-conceived and driven project, which will open and integrate the continents ICT markets and address the commercial imperative necessary to drive economic growth, said AFC President and Chief Executive, Andrew Alli.The corporation also signed an agreement with Ghanaian partner – Cenpower Generation Company Limited (Cenpower), to join forces in developing the Kpone Independent Power Project a 340 megawatt combined cycle gas turbine power plant in Tema, Ghana





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