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Africa Finance Corporation (AFC) announced on Wednesday its equity investment in Dhamana Guarantee Company Limited (Dhamana), a credit-enhancement facility established to unlock long-term, local-currency financing for infrastructure projects across East Africa. 

The investment forms part of AFC's approved commitment of up to US$20 million in capital, with an initial tranche of US$10 million in Dhamana’s core capital. 

Dhamana is designed to provide guarantees that enable infrastructure developers to access domestic debt capital markets, particularly from pension funds and institutional investors, on improved terms, while also supporting financial institutions in deepening financial inclusion. Dhamana’s operating model builds on the successful framework already implemented by similar Credit Enhancement Facilities in West Africa, notably InfraCredit Nigeria, where AFC is a founding shareholder.

“Dhamana represents a strategic opportunity to deepen domestic capital markets in East Africa by linking long-term institutional savings to bankable infrastructure investments,” said Banji Fehintola, Executive Board Member and Head of Financial Services at Africa Finance Corporation, commenting on the investment. 

He said AFC is pleased to support the establishment of another credit-enhancement facility focused on East Africa, which will help unlock local-currency financing, strengthen investor confidence, and accelerate infrastructure delivery across the region—building on the African financier's experience with InfraCredit in Nigeria.

According to AFC, Dhamana is backed by a strong consortium of development partners and institutional investors, with AFC expected to play an active role in governance and strategic oversight. Dhamana’s pipeline spans multiple infrastructure sectors across East Africa, with a focus on transactions that deliver measurable development impact while meeting robust risk management and governance standards.

AFC further said that the investment aligns with its broader strategy to support credit enhancement facilities across Africa, recognising their role in mobilising domestic capital, deepening local debt markets, and improving the financial sustainability of infrastructure projects.

Established in 2007 to catalyse private-sector-led infrastructure investment across Africa, AFC has 48 member countries and has invested over US$19 billion in 36 African countries since its inception.