The Africa Finance Corporation (AFC) has signed a memorandum of understanding (MoU) with the Japan Institute for Overseas Investment (JOI), aimed at scaling up investment flows into Africa. The AFC is focused on financing the development of core infrastructure (that is, power, natural resources, heavy industry, transport and telecommunications) projects across the continent. The JOI is an initiative of the Japan Bank for International Cooperation (JBIC).

The AFC already has a strong partnership with the JBIC. The new MoU, with the JOI, is aimed at boosting projects that will transform Africa’s energy sector by accelerating the energy transition and strengthening economic sustainability.

“Japan has been a pivotal partner in our mission to deliver transformational infrastructure solutions across Africa,” highlighted AFC executive board member and financial services head Banji Fehintola. “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.”

Under the MoU, the partners will jointly work to supply Japanese investors with essential insights, solutions to mitigate risks, and access to African financing opportunities. This reflects the shared commitment of the AFC and JOI to strengthen Africa-Japan economic relations.

“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,” affirmed JOI president Kenichiro Hayashi. “This partnership not only strengthens our ties but also reinforces our shared vision of a prosperous future through strategic investment.”

The AFC already has a presence in the Japanese capital markets, and this is growing. In 2022, it secured a dual-currency Samurai term loan facility, worth $389-million, which received strong support from major Japanese banks. This was not the AFC’s first Samurai load facility – that had been secured in 2019, and was worth $233-million and ¥1-billion.

The AFC was founded in 2007 and now has 43 member countries. It has so far invested $13-billion across Africa.