Africa Finance Corporation (AFC) (www.AfricaFC.org), the leading infrastructure solutions provider in Africa, and Japan Bank for International Cooperation (JBIC), Japan’s policy-based financial institution, have signed a Memorandum of Understanding (MOU) to collaborate on infrastructure projects that contribute to accelerating energy transition in Africa and promoting economic sustainability on the continent. This agreement was signed yesterday on the sidelines of the 58th Annual Assembly of the African Development Bank in Egypt.

This collaboration aims to develop and finance infrastructure projects on the continent that contribute to accelerating Africa’s path to net-zero in a pragmatic way. Priority projects include renewable energy technologies/systems (including green and blue hydrogen and ammonia), highly energy-efficient powerplants and carbon capture and storage (CCS) technology amongst others.

AFC plays a crucial role in financing the continent’s energy transition by investing in renewable energy projects, supporting the development of energy infrastructure, and providing financing for energy efficiency projects. The Corporation recently closed the acquisition of Lekela with Infinity Power, making AFC and its partners the largest renewable energy provider in Africa, with a combined gross capacity of 1.27GW, powering over 1 million homes and offsetting 2.7 million tons of CO2 per annum.

Sanjeev Gupta, Executive Director & Head of Financial Services, Africa Finance Corporation, said: “Partnerships with like-minded financial institutions like JBIC are critical in mobilizing the capital and expertise needed to achieve a pragmatic path to net zero in Africa. Through this collaboration, we envision a transformative alliance that harnesses the expertise, resources, and innovative financing solutions of both institutions, to drive a greener future for the continent whilst continuing to advocate for African industrialization."

Japan has been an important partner for AFC in fulfilling its commitment to building critical infrastructure in Africa that transforms lives. Late last year, AFC successfully closed a US$389 million dual currency Samurai term loan facility (split into US$382 million and JPY ¥1 billion), its second foray into the Japanese capital markets.