The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on August 20 a loan agreement amounting to up to USD14 million (JBIC portion) with ETC Group Limited (ETG), a Mauritius company invested in by Mitsui & Co., Ltd. (Mitsui). The loan is co-financed with Sumitomo Mitsui Banking Corporation, bringing the total co-financing amount to USD24 million.
The loan is intended to provide the necessary funds for ETG to conduct liquefied petroleum gas (LPG) operations in four Sub-Saharan African countries of Zambia, South Africa, Mozambique, and Uganda, through ETG Energy, its wholly owned subsidiary in Mauritius.
ETG has developed into a global player with a presence in more than 45 countries, spanning 6 continents. The Group has a diverse portfolio of expertise across various industries, encompassing agricultural inputs, chemicals, logistics, processing, food and ingredients, energy, metals, technology, and supply chain optimization. Since investing in ETG in 2018, Mitsui has utilized ETG’s distribution network as a platform to promote initiatives related to food and agriculture, as well as new collaborative projects in sectors such as chemicals and steel products in the African region.
In addition, the governments of Zambia, South Africa, Mozambique, and Uganda have set targets for reducing greenhouse gas (GHG) emissions in their Nationally Determined Contributions (NDCs), action plans under the Paris Agreement. One of the specific measures to achieve these targets is the energy transition from traditional fuels such as charcoal to LPG.
The loan will contribute toward maintaining and improving the international competitiveness of Japanese industry by supporting Mitsui's business expansion and new business development in Africa. The promotion of LPG projects through this financing aligns with the GHG emission reduction policies of the respective countries and is expected to support their sustainable development by facilitating the energy transition.
As Japan's policy-based financial institution, JBIC will continue to financially support the overseas business expansion of Japanese companies and initiatives for global environmental preservation, in collaboration with private financial institutions.
