- Region: Africa
- Energy and Natural Resources
May 31, 2010
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on May 30 a memorandum of understanding (MOU) for a comprehensive strategic partnership with the government of the Arab Republic of Egypt represented by the Ministry of Finance.
- Both parties confirmed in the MOU that they would mutually cooperate to strengthen economic relations between Japan and Egypt. Specifically, both parties will hold regular consultations for exchanging information and opinions in respect of new projects that could lead to bilateral cooperation, JBIC's financing policy for such projects, and the economic policy and fiscal information of the Egyptian government.
- The Egyptian government has recently been taking proactive steps to develop oil, natural gas and other resources, diversify industry in the oil-related sector and improve the country's transportation networks, including railroads. As a result, the government is stepping up efforts to import machinery and equipment, promote foreign investment and develop the necessary infrastructure for attracting foreign investment. A greater exchange of information and opinions made possible under this MOU is expected to facilitate JBIC's support for these efforts*2, thereby leading to closer economic relations between the two countries.
- In the Fourth Tokyo International Conference on African Development (TICAD IV) held in May 2008, the Japanese government pledged 2.5 billion US dollars in financial support for Africa to be provided through JBIC over the next five years to double Japanese private investment in Africa. As part of its efforts to actively support Africa, in April 2009 JBIC established the JBIC Facility for African Investment (FAI).*3 JBIC will strengthen ties with African countries, including the promotion of increased business between Japan and Egypt based on this MOU, thereby helping create business opportunities for Japanese firms.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 See Press Release on September 29, 2008, for a recent loan provided for natural gas development in Egypt.
- *3 See Information on July 2, 2009, for the track record of JBIC's support for Africa.