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AfDB courts more Japanese investment

to support sustainibility and resilience

AFRICA THE African Development Bank (AfDB) has Japan to raise investment to promote added
urged Japanese investors to collaborate with local value in local project.
partners in Africa in order to stimulate growth Mugoya also pointed to recent examples of
on the continent. co-financing operations, such as a loan to the
“Africa’s challenge today is to attract more Ghana Cocoa Board extended by the Bank and
private investors who can join forces with local the Japan International Cooperation Agency
partners in order to create added value and thus (JICA) under the Enhanced Private Sector Assis-
initiate inclusive and sustainable growth. In this tance initiative.
context, Africa needs much more investment Another project, Mozambique’s LNG Area 1
from Japan. The African Development Bank project, is jointly financed by the Japan Bank for
is ready to support this,” said Samuel Higenyi International Cooperation and Nippon Export
Mugoya, the Bank’s Director, Syndications, and Investment Insurance.
Co-financing and Client Solutions. Nobumitsu Hayashi, the Deputy Governor of
Mugoya noted that the private sector’s impor- the Japan Bank for International Cooperation,
tance to Africa’s development was recognised explained the leading role that the AfDB had
during the 7th Tokyo International Conference played in discussions around the Mozambique
on African Development (TICAD7) held in LNG project.
2019. The Japan Bank for International Coopera-
The Japanese government and the AfDB said tion, he said, could support the Japanese private
they planned to raise a joint $3.5bn under the sector in Africa by leveraging its extensive net-
Enhanced Private Sector Assistance for Africa work, and he urged participants to proactively
initiative (EPSA4). invest in Africa.
The investment is concentrated on energy Atsushi Mimura, Deputy Director-General
and transport and represents the fourth phase of the International Bureau of Japan’s Ministry
of Japan’s EPSA, which aims to spur private-sec- of Finance, outlined the overall relationship
tor-led sustainable and inclusive growth in between the AfDB and the government of Japan,
Africa. which is a Bank shareholder.
The AfDB’s call for investment comes as the “The Japan Bank for International Coop-
World Bank this week warned that the African eration and the Japan International Coopera-
economy as a whole would decline by 3.3% in tion Agency are committed to building a closer
2020, the region’s first recession in 25 years. relationship with the Bank through co-financ-
COVID-19 also threatens to push up to 40 ing operations. Large investment demand is
million people into extreme poverty in Africa, expected for infrastructure, including the health
eroding many of the development gains of the sector.”
past decade. Meanwhile, with 600mn people lacking
“Steady recovery in Sub-Saharan Africa after access to power in Africa, Japan is keen to sup-
the COVID-19 pandemic requires policies that port sustainable projects on the continent in
foster sustained growth and build resilience, order to use its soft power there while looking
but growth alone is not enough,” said Albert to support Japanese company’s activities in
Zeufack, World Bank Chief Economist for the Africa, such as Mitsubishi’s recent investment in
Africa regions. “African countries need to pri- BBOXX.
oritize now policies and investments to create Tokyo is also aiming to offer an alternative
more better and inclusive jobs: that’s the key to to Chinese investment, which has proved con-
sustained, inclusive and resilient growth.” troversial because of poor levels of transparency
This emphasis on sustainability and resilience and accusations of creating debt traps for several
is central to the AfDB’s message, which wants African countries.™

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