JBIC Supports Japanese Firm's Manufacturing and Sales of Anti-Malaria Mosquito Nets in the United Republic of Tanzania
NR/2005-74
January 31, 2006
- JBIC Supports Japanese Firm's Manufacturing and Sales of Anti-Malaria Mosquito Nets in the United Republic of Tanzania
- Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) signed a loan agreement today with Vector Health International Limited (VHI), a Tanzanian corporation in which Sumitomo Chemical Co., Ltd. has an equity stake. This loan will be used in order to finance the manufacture and sale of insecticide-treated mosquito nets (Olyset® Nets) for malaria prevention in Arusha in northeastern Tanzania. The proceeds of the loan will be used by VHI for the establishment of a production facility for the mosquito nets.
- Olyset® Nets are highly regarded by the World Health Organization (WHO) for their long-lasting insecticidal effect, which is made possible by Sumitomo Chemical's proprietary technology. In response to a request from the WHO, Sumitomo Chemical has licensed manufacturing expertise on Olyset® Nets to a Tanzanian company, supplied the necessary materials for this, and has purchased its products since 2003. Facing robust expectations for increasing supply and the widespread need for insecticide-treated mosquito nets, Sumitomo Chemical has decided to build a new production facility by forming a joint venture with a local firm. Products manufactured by VHI will be supplied primarily to Africa, where malaria infection poses a serious threat, mainly through international organizations such as the WHO and the United Nations Children's Fund (UNICEF).
- Traditionally, Japanese companies have made much smaller investments in Africa than they have in Asia due to country risk and the lack of information on investment climate and so forth. Amidst this background the Government of Japan announced the provision of assistance for Africa through JBIC's overseas investment loans at the 3rd Tokyo International Conference on African Development (TICAD III) held in September 2003. As part of this effort, this loan supports investment in Africa by Japanese firms.
- Furthermore, in collaboration with the United Nations Conference on Trade and Development (UNCTAD), JBIC has prepared policy proposals (Blue Book) for improving the investment climate in Tanzania and other African countries. JBIC also supports the business activities of Japanese firms in Africa, including this project, by making use of its function of mitigating country risk associated with its capacity as an official institution.
