NDF says poised to invest $2b in Africa
National Development Fund of Iran (NDF) announced the organization’s readiness to allocate a $2 billion credit line for financing technical and engineering services exports and investments in profitable projects across Africa.
Speaking at the financial, banking, and logistics panel of the 3rd Iran-Africa Economic Cooperation Summit in Tehran, Hossein Eyvazlou, a board member of NDF, elaborated on the mechanism, saying, “After a commercial or investment contract is signed between Iranian technical and engineering service exporters and their African counterparts, the agreement will be referred to the NDF upon completion of technical, financial, and economic evaluations by the Iranian agent bank,” Mehr reported.
“In this process, the agent bank may utilize the insurance services of the Export Guarantee Fund of Iran to cover commercial and political risks. The EGFI, in turn, will secure government or bank guarantees from the target African countries to mitigate these risks,” he added.
Eyvazlou highlighted additional methods of supporting African projects, stating, “Beyond the banking agency model, if Iranian contractors participate in profitable African projects, the NDF — upon obtaining payment commitment guarantees from the Iranian broker bank — can directly transfer funds to the overseas accounts of Iranian companies. Additionally, if a project’s returns are sufficiently high, the fund may also acquire equity stakes.”
He emphasized that this initiative aims to boost the NDF’s foreign currency assets and facilitate overseas currency circulation, saying, “This approach will ultimately enhance the fund’s capacity to supply foreign currency for importers of goods and services critical to Iran’s domestic industries.”
Stressing the importance of synergy among stakeholders, Eyvazlou proposed, “To operationalize the NDF’s $2 billion credit line, a dedicated working group on technical and engineering services exports and investments in Africa should be established, involving the Central Bank of Iran, the Trade Promotion Organization, the NDF, and the EGFI.”
Eyvazlou underscored Africa’s vast potential and Iran’s technical expertise, describing the NDF’s credit line initiative as a strategic step toward expanding Iran-Africa economic ties and strengthening Iran’s position in international currency markets.