Africa Finance Corporation (AFC), Africa’s leading infrastructure solutions provider, and Japan Bank for International Cooperation (JBIC), Japan’s policy-based financial institution, have signed a Memorandum of Understanding (MOU) to collaborate on infrastructure projects that contribute to Africa’s energy transition and economic sustainability.
This agreement was reached yesterday on the sidelines of the African Development Bank’s 58th Annual Assembly in Egypt.
This collaboration intends to create and fund infrastructure projects on the continent that will contribute to Africa’s pragmatic route to net-zero energy. Renewable energy technologies/systems (including green and blue hydrogen and ammonia), extremely energy-efficient powerplants, and carbon capture and storage (CCS) technology are among the priority initiatives.
By investing in renewable energy projects, supporting the development of energy infrastructure, and providing funding for energy efficiency initiatives, AFC plays a critical role in financing the continent’s energy transition. With the recent acquisition of Lekela by Infinity Power, AFC and its partners have become Africa’s largest renewable energy provider, with a combined gross capacity of 1.27GW, powering over 1 million homes and offsetting 2.7 million tons of CO2 per year.
“Partnerships with like-minded financial institutions like JBIC are critical in mobilizing the capital and expertise needed to achieve a pragmatic path to net zero in Africa,” said Sanjeev Gupta, Executive Director & Head of Financial Services, Africa Finance Corporation. We envisage a transformative relationship that leverages both institutions’ knowledge, resources, and new finance options to achieve a greener future for the continent while continuing to fight for African industrialization.”
Japan has been an essential partner in AFC’s commitment to constructing crucial infrastructure in Africa that transforms lives. Late last year, AFC successfully finalized its second entry into the Japanese capital markets, a US$389 million dual currency Samurai term loan facility (divided into US$382 million and JPY 1 billion).
