(4 minutes read)
The energy transition is an expensive affair and Africa is struggling to mobilise the funding needed to accelerate the deployment of the renewable energies it needs for its socio-economic development. The Africa Finance Corporation (AFC) and the Japanese Bank for International Cooperation (JBIC) signed a partnership agreement to overcome this obstacle on the sidelines of the 58th Annual Meeting of the African Development Bank (AfDB).
The energy transition is an expensive affair and Africa is struggling to mobilise the funding needed to accelerate the deployment of the renewable energies it needs for its socio-economic development. The Africa Finance Corporation (AFC) and the Japanese Bank for International Cooperation (JBIC) signed a partnership agreement to overcome this obstacle on the sidelines of the 58th Annual Meeting of the African Development Bank (AfDB).
The two financial institutions will work together to finance clean energy production infrastructure, including green hydrogen and its derivatives, notably green ammonia. By entering into this partnership with AFC, JBIC is fully in line with Tokyo’s strategy to increase Japanese investment in Africa tenfold. This objective was reaffirmed at the 8th Tokyo International Conference on African Development (TICAD-8).
In 2022 AFC signed a partnership agreement with Tokyo-based Mizuho Bank to support sustainable infrastructure development in several key sectors, notably energy. The AFC has increased its investments in this sector tenfold in recent years. A few months ago, the financial institution based in Lagos, Nigeria, concluded the purchase of Lekela Power, a wind energy producer based in Amsterdam, the Netherlands, with an installed capacity of 1,000 MW in Africa.
Read Also:
https://trendsnafrica.com/energy-transition-plan-nigeria-scouts-for-us-support/
https://trendsnafrica.com/un-report-exhorts-developing-world-to-invest-in-energy-transition/
Partnerships with like-minded financial institutions are key to mobilising the capital and expertise needed to build a pragmatic path to green energy in Africa. Through this collaboration, Africa aspires to a transformative alliance that harnesses the expertise, resources, and innovative financing solutions of both institutions to secure a greener future for the continent while continuing to make the case for the continent’s industrialisation.
