Africa Finance Corporation and Munich Re signed a US$1 billion Unfunded Managed Debt Mobilisation Program on October 27, 2026. Banji Fehintola, Executive Board Member and Head of Financial Services at Africa Finance Corporation, stated: "Multilateral development banks like AFC are increasingly embracing an originate-to-distribute model, with private capital mobilisation becoming central to how we deliver greater development impact. Managed debt mobilisation sits at the heart of this transition, enabling institutions like AFC to leverage our origination capabilities, structuring expertise and risk management frameworks to attract institutional capital at scale." Wola Asase, Deputy Director & Head of Syndications and AFC Captive Insurance Company Ltd, noted: "Munich Re has shared risk on AFC loans since 2018, one transaction at a time."
Scope of New Partnership
The programme encompasses 38 financial institutions during its first phase. These entities operate across 11 African countries. Africa Finance Corporation will apply the new debt structure to support these institutions within the defined geographic scope. The initiative aims to provide an expanded framework for risk participation compared to previous individual transactions. By formalizing this arrangement, Africa Finance Corporation and Munich Re intend to streamline the deployment of capital to these markets. The current phase focuses on establishing the operational parameters for the 38 participants, ensuring that the risk management standards of Africa Finance Corporation are applied consistently across the 11 nations. Future phases may build upon this initial deployment of the debt program.
Evolution of Strategic Cooperation
Africa Finance Corporation and Munich Re began their partnership in 2018. Herbert Müller, Head of Global Credit Solutions at Munich Re, stated: "Munich Re benefits from the strong pan-African footprint of AFC while AFC benefits from the strong capacity of Munich Re. The trust built between our two organizations through our cooperation since 2018 has allowed us to move from a transactional to a programmatic approach which allows us to support African financial institutions efficiently at scale. We see African trade as a long-term opportunity, and this programme gives us an efficient way to grow our business and improve our diversification at the same time alongside a trusted partner."
Africa Finance Corporation established the AFC Captive Insurance Company in August 2026. This Bermuda-based subsidiary holds up to US$30 million in equity capital. Banji Fehintola, Executive Board Member and Head of Financial Services at Africa Finance Corporation, commented on the broader context of these initiatives: "Across the development finance landscape, there is a growing recognition that the scale of Africa’s financing needs cannot be met through traditional balance sheet lending alone."
Munich Re recorded insurance revenue of €60.4 billion and a net result of €6.1 billion for the 2025 financial year. These figures underpin the institutional capacity available for the current debt program.
Africa Finance Corporation, established in 2007, has invested over US$19 billion across 36 African countries since its inception. Banji Fehintola remarked: "This programme with Munich Re demonstrates how we can translate that ambition into practical, scalable solutions that expand financing capacity while optimising the deployment of our own capital. As the African Continental Free Trade Area deepens trade between African economies, the programme helps to solve committed capacity constraints for banks that finance that trade and strengthens AFC’s ability to be more instrumental in financing Africa’s development."
