AfDB Backs Mota-Engil Africa with €120 Million Partial Credit Guarantee, Opening Paths for Infrastructure Firms
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In a landmark deal, the African Development Bank (AfDB) has signed a €120 million Partial Credit Guarantee in favor of Mota-Engil Africa to help unlock a €170 million sustainability-linked loan arranged via a major international lender. This agreement is one of AfDB’s first direct guarantees to a non-sovereign entity, specifically a construction and infrastructure engineering company operating across the continent.
The guarantee enhances Mota-Engil Africa’s credit profile and enables it to extend the maturity of its debt, improving its balance sheet while providing lenders with risk protection. With this backing, the firm is better positioned to deliver a pipeline of infrastructure projects spanning transport networks, water and sanitation systems, environmental services, and energy-efficient civil works across more than a dozen African nations.
For infrastructure companies across Africa, this transaction signals a new way to access affordable private financing. Firms can partner with development banks to obtain credit guarantees that reduce perceived risk for commercial lenders. By doing so, they can negotiate longer tenors, lower interest rates, and better access to capital—especially for projects with strong social, environmental, or climate resilience features. Structuring projects around sustainability metrics, ESG targets, and rigorous governance frameworks can further increase eligibility for such guarantees.
To tap into similar instruments, companies should strengthen their financial transparency, prepare detailed project feasibility plans, embed measurable ESG metrics, and engage proactively with development finance institutions (DFIs) and multilateral banks. Those that position themselves as credible, impact-driven operators are more likely to attract guarantees, capital, and partnerships. In the long run, the benefits include lower cost of capital, improved scalability, and enhanced reputation—transforming infrastructure firms into trusted players in Africa’s development journey.
