- Region: Africa
- Machinery and Equipment
- Export Loans
February 13, 2007
- Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) signed on February 9 an agreement for setting up an export credit line totaling up to 1.5 billion yen with the Eastern and Southern African Trade and Development Bank (PTA Bank). (For a brief overview of PTA Bank, please see Appendix)
- This loan is provided as a credit line to PTA Bank to enable it to finance its client firms in Sub-Sahara African countries as they import machinery and equipment from Japan. This is the first export credit line that JBIC offers to Sub-Sahara African countries.
- Since the Gleneagles Summit in 2005, the international community has focused increasing attention on business in Africa. JBIC, for its part, has been making efforts to support the private sector businesses operating in Africa by presenting a Blue Book on Best Practices for Investment Promotion and Facilitation (or Blue Book) to Kenya, Uganda, Tanzania and Ghana.
- Since the signing of an operational cooperation agreement with PTA Bank on October 19, 2006 with a view to expanding trade between Japan and African countries, as well as to encouraging Japanese firms' investment in Africa, JBIC has been examining possible financial support. The setting up of this credit line, which is one of the specific outcomes of such efforts, will help boost trade activities of Japanese firms with African countries, in cooperation with PTA Bank.
- Robust economic growth has given a big boost to trade in Sub-Sahara Africa, and record exports and imports are expected to give rise to increasing imports from Japan that underpin the economic development in the region. Amid this development, the credit line for PTA Bank will enable it to finance a wide range of firms in the region. JBIC will actively support Japanese firms for taking advantage of their business opportunities through the provision of credit lines and other financing.