Sharm El Sheikh, 24 May 2023 – Africa Finance Corporation (AFC) and Japan Bank for International Cooperation (JBIC) have joined forces to accelerate Africa’s energy transition and promote economic sustainability on the continent. The leading infrastructure solutions provider in Africa, AFC, and JBIC, Japan’s policy-based financial institution, signed a Memorandum of Understanding (MOU) yesterday during the 58th Annual Assembly of the African Development Bank in Egypt.
The collaboration between AFC and JBIC aims to develop and finance infrastructure projects that contribute to Africa’s net-zero emissions goal in a pragmatic manner. The focus will be on priority projects such as renewable energy technologies/systems, highly energy-efficient power plants, carbon capture and storage (CCS) technology, and more.
AFC has played a pivotal role in financing Africa’s energy transition, investing in renewable energy projects, supporting energy infrastructure development, and providing financing for energy efficiency initiatives. Recently, AFC and its partners became the largest renewable energy provider in Africa following the acquisition of Lekela with Infinity Power. With a combined gross capacity of 1.27GW, their projects power over 1 million homes and offset 2.7 million tons of CO2 annually.
Sanjeev Gupta, Executive Director & Head of Financial Services at Africa Finance Corporation, emphasized the significance of partnerships with like-minded financial institutions such as JBIC in mobilizing capital and expertise for Africa’s net-zero journey. He expressed the vision of a transformative alliance that leverages the expertise, resources, and innovative financing solutions of both institutions to drive a greener future for the continent while advocating for African industrialization.
Japan has been a key partner for AFC in fulfilling its commitment to building critical infrastructure in Africa. In a significant achievement, AFC recently closed a US$389 million dual currency Samurai term loan facility, marking its second successful foray into the Japanese capital markets.
The collaboration between AFC and JBIC holds great promise for Africa’s sustainable development. By combining their financial prowess, expertise, and resources, the two institutions aim to make a lasting impact on Africa’s energy landscape, foster economic sustainability, and pave the way for a greener future.
As Africa strives to achieve its net-zero goals, partnerships and collaborations like this will continue to play a vital role in driving the continent’s energy transition and advancing its economic agenda.