Page 4 - AfrElec Week 35 2022

AfrElec INVESTMENT AfrElec

Africa seeks Japanese

renewables investment

JAPAN PLAYERS large and small in the Japanese awareness across the continent.
renewables industry have recently found them- The AfDB’s Adesina also referred to a com-
selves being courted by the Ivory Coast-based mon Japanese perception of much of Africa
African Development Bank (AfDB) in a bid to needing food aid rather that renewables invest-
attract investment in energy projects across the ment by highlighting his bank’s African Emer-
continent. gency Food Production Facility.
Speaking at the August 27 and 28 Tokyo A project initiated in the spring, it has pro-
International Conference on African Develop- vided over $1.1bn in food aid to almost half the
ment (TICAD8) in the Tunisian capital of Tunis, countries in Africa, leading Adesina to say: “I
AfDB President Dr. Akinwumi Adesina said: “In am delighted that the Japan International Coop-
2020, Moody’s Analytics performed a 10-year eration Agency (JICA) has provided additional
cumulative assessment of global infrastructure co-financing of $518mn to support the facility.”
debt default rates, by region. It found that Africa It was left to the Senegalese president, Macky
was the region with the second lowest cumula- Sall, to pull the focus back to Africa’s potential
tive default rate, after the Middle East. That is in renewables, when he said Japan possesses the
proof once again that infrastructure as an asset “technological and financial capacity needed to
class in Africa is solid, secure and profitable.” set up partnerships in Africa in sectors such as
He did so in front of 20 visiting heads of state infrastructure, transportation and housing.”
from around the continent as well as a range of It was an angle only belatedly addressed by
Japanese business leaders, in what was the eighth the AfDB chief when he drew attention to a mere
such event aimed at affording African leaders the 0.003% of Japan’s $2 trillion in global foreign
opportunity to seek investment from one of the direct investment (FDI) targeting opportunities
world’s leading nations in terms of renewable in Africa.
energy. In response, he offered a desire to see
AfDB President Adesina, however, offered increased Japanese investment in direct trade
little in the way of specifics, leaving observers and investments.
nonplussed at chances missed. Only then did he address potential in African
Speaking via video-link from Japan, Prime renewable-linked industries such as lithium bat-
Minister Fumio Kishida highlighted the $20bn tery production, and a combination of geother-
Japan had already invested in the continent over mal, hydro and wind power possibilities.
the past three years as part of a goal put in place In doing so, though, details of how and where
at TICAD7 in Yokohama, Japan in 2019. the AfDB sees Japanese investment possibil-
The Japanese PM went on to say that Tokyo ities in renewables across the continent were
“will provide co-financing of up to $5bn, scant, even during meetings with the heads of
together with the African Development Bank, Japan’s Keidanren, an organisation representing
in order to improve the lives of African people.” the nation’s leading businesses and industrial
In his own appeal, though, the ADB president associations.
first urged Japanese business leaders in attend- Similarly short on details, according to
ance to focus on evidence of African ability to sources, were meetings with the president of
properly establish renewables infrastructure, JICA and the Governor of the Japan Bank for
rather than be reminded of commonly held International Cooperation (JBIC) in what is
international stereotypes of Africa. being seen as an opportunity squandered by the
Hinting at those stereotypes, however, Afri- AfDB and money saved by Japanese renewables
can Union Chairman Moussa Faki Mahamat investors.™
lauded Japan’s work on increasing nutritional

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