- Region: Africa
- Environment
- Manufacturing and Services
- Untied Loans
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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on May 26 a loan agreement, amounting to up to approximately EUR24 million (JBIC portion) with the government of the Republic of Benin, based on a credit line set up in July 2025*1. The loan is co-financed with Sumitomo Mitsui Banking Corporation, bringing the total co-financing amount to approximately EUR48 million. JBIC will also provide a guarantee for the co-financed portion.
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This loan is intended to provide the funds necessary for installing battery storage systems at a solar power plant in Benin and for burying transmission cables as part of GREEN operations*2.
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The government of Benin signed the Paris Agreement in 2016, and formulated its Nationally Determined Contributions (NDC) in 2017. In the NDC revised in 2021, the government further strengthened its climate change measures, including by raising the numerical targets for reducing greenhouse gas emissions. The government has also identified energy transition and the promotion of green energy as key policy priorities in its national plan, Programme d'Actions du Gouvernement 2021–2026, which was approved by the government in 2021. Furthermore, at the Ninth Tokyo International Conference on African Development (TICAD 9) held in August 2025, the Japanese government and African countries, including Benin, agreed on the Yokohama Declaration, which incorporates enhanced efforts to address climate change. The declaration confirms the promotion of decarbonization efforts in line with growing energy demand, clearly stating the importance of achieving a green transition tailored to each country's energy situation while pursuing economic growth, as well as the securing of investment for renewable energy.
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This financing will contribute toward maximizing the utilization efficiency of solar power generation facilities through the installation of battery storage systems that will enhance the stability of the entire power grid, and reducing transmission losses through the burying of transmission cables. In Benin, where the domestic electrification rate remains around 40%, supporting such initiatives will not only help address the social challenge of expanding the country’s power supply, but support the country’s efforts toward reducing greenhouse gas emissions and realizing sustainable development.
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As Japan's policy-based financial institution, JBIC will continue to actively support sustainable development efforts, including those for global environmental preservation, by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
Note
- *1
- *2