Africa Finance Corporation (AFC) in August 2026 launched a Bermuda-domiciled captive, AFC Captive Insurance Company, to strengthen risk management and support its infrastructure financing activities across the continent.
Backed by up to $30 million in equity capital, AFC Captive will initially insure loans AFC extends to its counterparties, with the goal of reducing reliance on external commercial insurance markets over time. Wola Asase, AFC’s deputy director and head of syndications, will lead the new subsidiary as head of AFC Captive and board director.
Licensed as a class 2 insurer, the captive can also extend coverage to AFC affiliates and select third parties, with up to 20% of underwriting capacity earmarked for such business. Asase said the structure allows AFC to “expand market capacity, improve capital efficiency and unlock financing” for projects otherwise constrained by costly or limited insurance options. The captive will underwrite P&C risks only, at least initially.
AFC CEO Samaila Zubairu framed the captive as part of a broader push to mobilize capital for Africa’s infrastructure needs, enhancing the corporation’s ability to manage risk and scale investment in industrial projects. The move follows AFC’s January 2026 ‘A’/’A-1’ issuer credit rating from a major global agency—its highest to date—alongside renewed AAA domestic ratings from CCXI and S&P Global (China) Ratings.
Since its founding in 2007, AFC has invested over $19 billion across 36 African countries. As the captive builds scale and its own credit profile, expect AFC to broaden third-party insurance offerings, signaling growing sophistication in how development finance institutions manage infrastructure risk.
Share this:
- More [2]
