AFC and JOI Forge Strategic Partnership to Boost Japanese Investment in African Infrastructure

This strategic partnership is designed to scale investments in transformative infrastructure projects that will drive Africa’s energy transition and foster economic sustainability.

The Africa Finance Corporation (AFC), a leading infrastructure solutions provider, has entered into a transformative partnership with the Japan Institute for Overseas Investment (JOI), established under the initiative of the Japan Bank for International Cooperation (JBIC). The Memorandum of Understanding (MoU), signed between the two institutions, aims to catalyze Japanese investments in Africa by providing critical insights, risk mitigation solutions, and enhanced access to financing opportunities.

Advancing Africa’s Development Goals

This strategic partnership is designed to scale investments in transformative infrastructure projects that will drive Africa’s energy transition and foster economic sustainability. It underscores the shared commitment of AFC and JOI to deepen economic ties between Japan and African nations.

Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, emphasized the significance of the collaboration:“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, facilitating impactful investments that advance economic prosperity on the continent.”

Empowering Japanese Investors in Africa

Through this partnership, JOI will provide Japanese companies with essential market intelligence, risk management strategies, and access to investment opportunities tailored to their needs.

Kenichiro Hayashi, President of JOI, highlighted the initiative’s importance:“The partnership with AFC marks a significant step forward in fostering investment opportunities for Japanese companies in Africa. 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.”

Growing Presence in Japanese Capital Markets

AFC has been steadily strengthening its presence in Japanese financial markets.

2022: AFC secured a $389 million dual-currency Samurai term loan facility, attracting strong interest from Japanese investors, including Mizuho Bank Ltd, MUFG Bank Ltd, and Sumitomo Mitsui Banking Corporation as Mandated Lead Arrangers and Bookrunners.

2019: AFC launched its first Samurai loan facility, raising $233 million and ¥1 billion, cementing its position as a trusted partner in Japan.

These milestones highlight Japan’s growing confidence in Africa’s infrastructure sector, with AFC serving as a reliable conduit for channeling investments into the continent.

Facilitating Africa’s Energy Transition

The collaboration aligns with AFC’s mission to address Africa’s energy needs while promoting sustainable development. By prioritizing investments in renewable energy, clean technology, and infrastructure modernization, the partnership aims to reduce Africa’s energy deficit and advance its transition to a low-carbon economy.

Broader Implications

This MoU signals a significant step in fostering stronger economic relations between Japan and African nations. By bridging information gaps and providing risk mitigation strategies, the collaboration will encourage Japanese investors to actively participate in Africa’s growth story.

Looking Ahead

The AFC-JOI partnership reflects a shared vision for creating a prosperous and sustainable future for Africa. By leveraging Japan’s capital markets and Africa’s development potential, the collaboration promises to unlock unprecedented opportunities for transformative growth across the continent.