JBIC Signs MOU with IsDBG
Promoting Cooperation toward African Development and New Business Opportunities between Japan and Islamic Countries
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on August 27 a memorandum of understanding (MOU) with the Islamic Development Bank Group (IsDBG; Chairman: Dr. Ahmad Mohamed Ali), taking the opportunity of the 6th Tokyo International Conference on African Development (TICAD VI) held in Nairobi, Kenya. The objectives of this MOU are to promote development in Africa and to strengthen relationships for creating business opportunities between Japan and the IsDBG member countries.
IsDBG is a regional development financial institution, established in 1975 with the aim to financially support economic growth and social development of Islamic countries. It leads several organizations, including Islamic Development Bank (IsDB), which provides support through Islamic finance; Islamic Corporation for the Development of the Private Sector (ICD), which enhances investments in private businesses; and Islamic Corporation for the Insurance of Investment and Export Credits (ICIEC), which underwrites various insurances for facilitating investments and trades. IsDBG’s membership currently consists of 57 countries from the Middle East to Africa and Asia. From the African continent, 27 out of the 54 independent states are IsDBG members, and thus IsDBG holds a high level of interest in promoting economic and social development of Africa.
In addition to further strengthening the cooperative relationship between JBIC and IsDB, as well as ICD, which is grounded in the agreement signed in September 2007, this MOU newly establishes strong cooperation between JBIC and ICIEC. Through this MOU, JBIC seeks to utilize ICIEC’s insurance function in order to enhance the possibilities for supporting Japanese companies’ business expansion in African countries, as well as in ICIEC member countries. JBIC also seeks to increase the possibilities of cooperation with IsDBG in the Islamic finance sector.*1
The Japanese government set forth at TICAD V held in 2013 its basic policy to support growth in Africa through public-private partnerships of up to JPY3.2 trillion over five years from 2013 to 2018. At TICAD VI, held on August 27 and 28 of this year, the Japanese government announced its policy to further enhance such support. JBIC’s support for Japanese companies’ business expansion in African countries with the application of the MOU is therefore in line with said policy of the Japanese government.
As Japan's policy-based financial institution, JBIC will continue to financially support the overseas expansion of Japanese companies by further strengthening its relationship with IsDBG.
- *1 Based on the Partial Amendment of the Japan Bank for International Cooperation Act (enacted on May 11, 2016), Islamic finance has been newly added to JBIC’s support functions. See Information on May 11, 2016, for further details.