Japanese Investment in Africa Finds New Support through AFC and JOI Partnership

Last Updated 3 weeks ago by Kenya Engineer

In a significant step toward enhancing investment opportunities in Africa, a partnership between the Africa Finance Corporation (AFC) and the Japan Institute for Overseas Investment (JOI) has been established to facilitate increased capital flow into the continent. The collaboration, formalized through a Memorandum of Understanding (MOU) on November 15, 2024, aims to support transformative projects that accelerate Africa’s energy transition and strengthen economic sustainability.

Building on AFC’s ongoing relationship with the Japan Bank for International Cooperation (JBIC), the newly signed MOU marks a commitment by both AFC and JOI to foster economic ties between Japan and African nations. This strategic partnership is set to offer Japanese investors vital insights, risk mitigation solutions, and enhanced access to financing opportunities, paving the way for impactful and sustainable investments.

Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, highlighted the significance of Japan’s role in Africa’s development: “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.”

Kenichiro Hayashi, President of JOI, echoed the sentiment, emphasizing the partnership’s potential: “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.”

AFC’s footprint in the Japanese capital markets has been expanding over recent years. In 2022, AFC successfully secured a $389 million dual-currency Samurai term loan facility, attracting strong interest from major Japanese financial institutions such as Mizuho Bank Ltd., MUFG Bank Ltd., and Sumitomo Mitsui Banking Corporation, who acted as Mandated Lead Arrangers and Bookrunners. This followed AFC’s first Samurai loan facility in 2019, which raised $233 million and ¥1 billion.

This strengthened partnership between AFC and JOI is poised to catalyze investments that will drive economic growth and infrastructure development across Africa, reinforcing the continent’s path towards sustainable development and fostering long-term partnerships with international stakeholders. By creating a bridge for Japanese investors into African markets, the AFC and JOI collaboration is set to unlock new opportunities that benefit both regions.