AFC and JBIC Partner to Drive Green Infrastructure Development in Africa.

24 May 2023

Africa Finance Corporation (AFC), the leading provider of infrastructure solutions in Africa, and Japan Bank for International Cooperation (JBIC), a policy-based financial institution in Japan, have signed an agreement to collaborate on infrastructure projects that support the acceleration of energy transition in Africa and promote economic sustainability on the continent.

The objective of this collaboration is to develop and finance infrastructure projects in Africa that contribute to the continent's journey toward practically achieving net-zero emissions. Key projects will focus on renewable energy technologies/systems (including green and blue hydrogen and ammonia), highly efficient power plants, and carbon capture and storage (CCS) technology, among others.
Sanjeev Gupta, Executive Director & Head of Financial Services at Africa Finance Corporation, emphasized the importance of partnerships with like-minded financial institutions such as JBIC in mobilizing the necessary capital and expertise to achieve a realistic path to net-zero in Africa. The collaboration aims to create a transformative alliance that leverages the expertise, resources, and innovative financing solutions of both institutions to drive a greener future for the continent while advocating for African industrialization.

AFC plays a vital role in financing Africa's energy transition by investing in renewable energy projects, supporting the development of energy infrastructure, and providing financing for energy efficiency initiatives. Recently, the corporation completed the acquisition of Lekela with Infinity Power, establishing AFC and its partners as the largest renewable energy provider in Africa. Together, they have a combined gross capacity of 1.27 GW, which powers over 1 million homes and offsets 2.7 million tons of CO2 annually.
Japan has been a significant partner for AFC in fulfilling its commitment to building crucial infrastructure in Africa that positively impacts people's lives. In late 2022, AFC successfully closed a dual currency Samurai term loan facility worth US$389 million (split into US$382 million and JPY 1 billion) in the Japanese capital markets, marking its second venture into such funding opportunities.

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