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IFC Agreement with JBIC to Enhance Private Sector Investment in Africa


In Hong Kong:
Andrew Mak
Phone: +852 2509 8110
E-mail: AMak@ifc.org

In Washington, D.C.:
Lotte Pang
Phone: +1 (202) 758 4290
E-mail: LPang@ifc.org


Tokyo, June 5, 2008—IFC, a member of the World Bank Group, today announced that it has signed a memorandum of understanding with the International Financial Operations of Japan Bank for International Cooperation to help address the enormous needs for private sector investment in Africa. The two institutions will finance and mobilize investments as well as foster climate change mitigation projects through loans, guarantees, and equity investments.

Fumio Hoshi, JBIC Senior Executive Director, said, “We intend to strengthen our support for Japanese business initiatives in Africa. The agreement with IFC constitutes an important step in a series of activities toward this end.”

Jyrki Koskelo, IFC Vice President for Africa, Global Financial Markets, and Funds, said, “This agreement will enable IFC and JBIC to leverage our relationships with key stakeholders in Africa and implement projects that deliver sustainable private sector development.”

The signing took place prior to the fourth Tokyo International Conference on African Development, which the World Bank Group helped organize and which was attended by more than 40 African heads of state. At the conference, the Japanese government announced that it has established the Facility for African Investment within JBIC. Noting that private sector involvement will be crucial to developing the Africa region, Prime Minister Fukuda of Japan pledged to provide financial support totaling $2.5 billion through the Japan Bank for International Cooperation over the next five years.

About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC's vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.

About the International Financial Operations of Japan Bank for International Cooperation
The International Financial Operations of JBIC has a statutory mandate to undertake lending and other operations for the promotion of Japanese exports, imports, and economic activities overseas. The bank also seeks to foster the stability of the international financial order, thereby contributing to the sound development of the Japanese and international economies. The International Financial Operations of JBIC will be merged with three other organizations on October 1, 2008, to become a new policy-based financing institution. For more information, visit www.jbic.go.jp.