The African Development Bank (AfDB) says it is ready to support investments from Japan to initiate inclusive and sustainable development in the continent.
AfDB’s Director, Syndications, Co-financing and Client Solutions, Mr Samuel Higenyi Mugoya, said this during a webinar for Japanese private sector, in a statement released on its website on Wednesday.
The meeting was aimed at providing information to the Japanese private sector on doing business in Africa.
“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,” Mugoya said.
The bank urged Japanese investors to collaborate with local partners in Africa to enable it stimulate growth on the continent.
Mugoya recalled that the private sector’s importance to Africa’s development was recognised during the 7th Tokyo International Conference on African Development (TICAD7) held in 2019.
He also emphasised 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.
He said another project, Mozambique’s LNG Area 1 Project, was jointly financed by the Japan Bank for International Cooperation and Nippon Export and Investment Insurance.
Nobumitsu Hayashi, the Deputy Governor of the Japanese Bank for International Cooperation explained the leading role that the AfDB had played in discussions around the Mozambique LNG project.
Hayashi said that the corporation could support the Japanese private sector in Africa by leveraging its extensive network and urged participants to proactively invest in the continent.
Atsushi Mimura Deputy Director-General of the International Bureau of Japan’s Ministry of Finance outlined the overall relationship between the AfDB and the government of Japan.
“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.
Takashi Hanajiri, the bank’s Director of its Asia External Representation Office, explained the role and activities of the office and highlighted the bank’s flagship Africa Investment Forum.
Hanajiri said the forum was a strategic platform for attracting capital to Africa.
The AfDB members of staff made presentations on the Enhanced Private Sector Assistance Initiative, a partnership between the bank and the Japanese government, the bank’s private sector operations.
The presentations also addressed investment opportunities and successful private sector operations in the power and renewable energy sectors.
Participants were exposed to some of the financial products being offered by the bank for private sector investments.