The African Development Bank has urged Japanese investors to collaborate with local partners in Africa in order to stimulate growth on the continent.
The invitation came on 29 September during a webinar to provide information to the Japanese private sector on doing business in Africa. About 250 participants, mainly from Japan, attended the webinar
which was organized by the Bank’s Asia External Representation Office and its Co-Financing, Syndication and Client Solutions Department.
“Africa’s challenge today is to attract more private investors who can join forces with local partners in order to create added value and thus initiate inclusive and sustainable growth. In this context, Africa needs much more investment from Japan. The African Development Bank is ready to support this,” said Samuel Higenyi Mugoya, the Bank’s Director, Syndications, Co-financing and Client Solutions.
Mugoya noted that the private sector’s importance to Africa’s development was recognized during the 7th Tokyo International Conference on African Development (TICAD7) held in 2019.
He also pointed to recent examples of co-financing operations, such as a loan to the Ghana Cocoa Board extended by the Bank and the Japan International Cooperation Agency under the Enhanced Private Sector Assistance initiative. Another project, Mozambique’s LNG Area 1 Project, is jointly financed by the Japan Bank for International Cooperation and Nippon Export and Investment Insurance.
Nobumitsu Hayashi, the Deputy Governor of the Japan Bank for International Cooperation, explained the leading role that the African Development Bank had played in discussions around the Mozambique LNG project. The Japan Bank for International Cooperation, he said, could support the Japanese private sector in Africa by leveraging its extensive network, and he urged participants to proactively invest in Africa.
Atsushi Mimura, Deputy Director-General of the International Bureau of Japan’s Ministry of Finance, outlined the overall relationship between the African Development Bank and the government of Japan, which is a Bank shareholder.
“The Japan Bank for International Cooperation and the Japan International Cooperation Agency are committed to building a closer relationship with the Bank through co-financing operations. Large investment demand is expected for infrastructure, including the health sector, and Africa has high growth potential in the post-COVID-19 phase,” Mimura said.
The Bank’s Director of its Asia External Representation Office, Takashi Hanajiri, explained the role and activities of the Asia External Representation Office and highlighted the Bank’s flagship Africa Investment Forum, a strategic platform for attracting capital to Africa.
In addition, Bank staff presented on the Enhanced Private Sector Assistance initiative, a partnership between the Bank and the government of Japan, and on the Bank’s private sector operations.
Presentations also addressed investment opportunities and successful private sector operations in the power and renewable energy sectors. Participants also learned about the financial products the Bank offers for private sector investments.