By Andrei Skvarsky.
Africa Finance Corporation (AFC), a 43-nation development organisation, and the Japan Institute for Overseas Investment (JOI) have agreed key points for an agreement to boost Japanese investment in Africa.
The deal would involve providing investors with crucial insights and risk mitigating solutions. It would help speed up energy transition and build economic sustainability in Africa, AFC said in a statement in announcing a memorandum of understanding with JOI.
In 2022, AFC pulled off a $389m Samurai loan from Japanese investors including major banks Mizuho and Mitsubishi UFG Financial Group (MUFG) with Sumitomo Mitsui Banking Corporation (SMBC) acting as the lead book runner. Samurai loans are syndicated loans by Japanese investors for non-Japanese borrowers.
In 2019, AFC arranged its first Samurai loan of $242m.
AFC, which is headquartered in Lagos, Nigeria, has invested $13bn across Africa since its inception in 2007.
JOI is a Tokyo-based association of companies in various sectors, investment promotion agencies, foreign embassies in Japan and other institutions. Information and research are a significant part of its activities. It conducts seminars and publishes a magazine.