- Region: Africa
- Machinery and Equipment
- Export Loans
November 25, 2010
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on November 24 a buyer’s credit*2 agreement totaling up to 19.3 billion yen with the Government of the Republic of Angola. This transaction, cofinanced with the Bank of Tokyo-Mitsubishi UFJ, is the first direct loan extended by JBIC to the country.
- As the Angolan Ministry of Geology, Mines and the Industry implements the state-owned textile plant rehabilitation project, this loan will finance procurement of a textile production facility from Marubeni Corporation for the project by the Ministry. The textile machinery and equipment to be installed in this transaction are manufactured by Toyota Industries Corporation and Murata Machinery, whose exports benefits from JBIC’s financial support.
- Steadily advancing the reconstruction of the country devastated by the 27-year civil war that came to an end in 2002, the Angolan government gives policy priority to the rehabilitation of the textile industry, which now relies mostly on imported textile goods. This project marks the first step for the recovery of the Angolan textile industry, and is expected to lead to increased business opportunities for Japanese firms exporting textile machinery and equipment, which will play an essential part in the development of the industry by the Angolan government over the coming years.
- During the Fourth Tokyo International Conference on African Development (TICAD IV) in May 2008, the Government of Japan pledged 2.5 billion US dollars financial support for Africa over a five-year period through JBIC operation. This loan, which supports Japanese firms’ exports to Africa, is well aligned with this government policy.
- JBIC will continue to support the expansion of Japanese business in Africa through similar financing.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 A buyer’s credit is a direct loan from JBIC to a foreign importer (buyer) to finance its importation of machinery and equipment from a Japanese exporter.