Africa Finance Corporation and Japan Institute for Overseas Investment sign MoU on clean energy transition

The Africa Finance Corporation (AFC) and Japan Institute for Overseas Investment (JOI) have signed a Memorandum of Understanding (MoU) to facilitate investment in projects that will accelerate Africa’s energy transition.

The energy transition is the shift from an energy mix based on fossil fuels to one that produces very limited, if not zero, carbon emissions, based on renewable energy sources. AFC is the continent’s leading infrastructure solutions provider, while JOI was established by the initiative of the Japan Bank for International Cooperation (JBIC).

Building on AFC’s partnership with JBIC, the MoU signed with JOI sets out to drive transformative projects that will accelerate Africa’s energy transition and enhance economic sustainability. Underscoring the shared commitment of both organisations to strengthen economic relations between Japan and African nations, the MoU envisages both institutions working together to provide Japanese investors with crucial insights, risk mitigating solutions, and access to financing opportunities on the continent.

Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, commented: “Japan has been a pivotal partner in our mission to deliver transformational infrastructure solutions across Africa. By collaborating with JOI, we aim to create a more enabling environment for Japanese investors, thereby facilitating impactful investments that advance economic prosperity on the continent.”

The partnership with AFC marks a significant step forward in fostering investment opportunities for Japanese companies in Africa and together with AFC, we will provide Japanese companies with the necessary information. This partnership not only strengthens our ties but also reinforces our shared vision of a prosperous future through strategic investment

Kenichiro Hayashi, President of JOI

AFC’s presence in the Japanese capital markets continues to grow. In 2022, AFC secured a $389 million dual-currency Samurai term loan facility, with strong interest from Japanese investors including Mizuho Bank Ltd, MUFG Bank Ltd., and Sumitomo Mitsui Banking Corporation acting as Mandated Lead Arrangers and Bookrunners. In 2019, AFC launched its first Samurai loan facility, raising $233 million and ¥1 billion.

brian@theenergyreview.com