Export Credit Line for the Republic of Angola
Supporting Export of Equipment and Services Related to the Harbor Sector in Angola by Japanese Company
- Region: Africa
- Machinery and Equipment
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed today a general agreement for providing an export credit line with the government of the Republic of Angola. This credit line is co-financed by private financial institutions, and the co-financed portion will be covered by insurance from Nippon Export and Investment Insurance (NEXI).
The credit line is intended to provide funds for the government of Angola to import machinery and equipment from Toyota Tsusho Corporation and other Japanese companies for use in relation to the Namibe Comprehensive Development Project ("the Project"), which includes two projects being carried out by Angola's Ministry of Transport: the Namibe Port Expansion for New Container Terminal Project and the Sacomar Iron Ore Export Terminal Rehabilitation Project. *1
In Angola, there are rising expectations for the optimization of logistics through establishing logistics bases in the southern part of the country and the acquisition of foreign currencies by promoting mineral resource exports. The government of Angola sees the project as having great importance for those purposes. In addition to contributing to the development of the southern part of Angola, the project will contribute to maintaining and enhancing its international competitiveness of Japanese industry by promoting the exports to the country by Japanese companies.
The promotion of economic structural reforms through the economic diversification and industrialization of Africa was a key subject at the sixth Tokyo International Conference on African Development (TICAD VI). The Japanese government has set a policy of offering high-quality support to the African region with the cooperation of the public and private sector, and this project is in accordance with that policy.
As Japan's policy-based financial institution, JBIC will continue to support exports to Africa and the creation of business opportunities in Africa for Japanese companies-with a focus on this years' TICAD VII-by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
An export credit line is a form of export credit in which JBIC makes a commitment for the maximum amount of credit to be extended to foreign banks or other entities to finance the export of machinery and equipment from Japan.