Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider has announced an equity investment in Dhamana Guarantee Company Limited (Dhamana).
As a credit enhancement facility, Dhamana was established to unlock long-term, local-currency financing for infrastructure projects throughout East Africa.
This investment is part of AFC’s approved commitment of up to US$20 million in capital, with an initial tranche of US$10 million provided for Dhamana’s core capital.
Dhamana is designed to provide guarantees that help infrastructure developers access domestic debt capital markets specifically targeting pension funds and institutional investors on more favorable terms.
The company also works with financial institutions to deepen regional financial inclusion.
Its operating model follows the successful framework implemented by similar credit enhancement facilities in West Africa, such as InfraCredit Nigeria, where AFC was a founding shareholder.
Commenting, the Executive Board Member and Head of Financial Services at Africa Finance Corporation, Banji Fehintola said, “Dhamana represents a strategic opportunity to deepen domestic capital markets in East Africa by linking long-term institutional savings to bankable infrastructure investments. Building on our experience with InfraCredit in Nigeria, AFC is pleased to support a facility that will unlock local-currency financing, strengthen investor confidence, and accelerate infrastructure delivery across the region.”
Similarly, Christopher Olobo, Chief Executive Officer of Dhamana Guarantee Company, noted; “We are delighted to welcome Africa Finance Corporation as a shareholder. AFC’s investment marks a major institutional endorsement of our mandate to unlock long‑term, local currency financing for infrastructure and priority sectors. This partnership strengthens our capital base, governance, and strategic capability as we scale our guarantee operations to deliver transactions that combine strong risk discipline with measurable developmental impact.”
Dhamana is supported by a strong consortium of development partners and institutional investors, with AFC taking an active role in governance and strategic oversight.
This investment aligns with AFC’s broader strategy to support credit enhancement facilities that improve the financial sustainability of African infrastructure projects.