Seven JBIC “Global South” Projects
JBIC’s first loan for an African government to come under ‘Global action for Reconciling Economic growth and ENvironmental preservation’ (GREEN) operations was a credit line agreement with the Republic of Benin. The West African nation has a low electrification rate and this important project helps solve social issues. FUKAYA Satoko and HIRATO Hitomi, who were tasked with this initiative, speak about its background and significance.


Lantern recharging devices connected to solar panels installed on the school roof
Co-financing for two renewable energy projects took off after the TICAD 7 event
Benin imports fossil fuels and electricity from neighboring countries such as Nigeria. Its electrification rate is in the 40 percent range, while its energy self-sufficiency ratio is only around 10 percent. In its national development plan, the government of Benin has set a goal of launching solar power generation facilities with a total capacity of 150 MW by 2026.
In June 2023, JBIC decided to co-finance two projects for the Benin government: providing EUR29 million for a solar power project and EUR1 million for an electrified lantern project. This first loan for an African government to come under GREEN operations was also JBIC’s first loan for Benin.
“We had been receiving proposals from trading companies about loans for Benin, but none had been realized,” explains FUKAYA Satoko, Director of Division 3, Energy Solutions Finance Department. “However, we were aware that Benin was comparatively stable both politically and economically compared to other African countries, and that it had a lot of potential. Then, a high-level meeting with President Talon at the 7th Tokyo International Conference on African Development (TICAD 7) held in Yokohama in 2019 provided an occasion to build a relationship with the government of Benin. This agreement was the fruit of our work on this relationship over the past few years.”
They did, however, experience some twists and turns until a decision was reached on the co-financing deal.
Although JBIC had signed a credit line agreement with the government of Benin in March 2021, no significant progress had been seen around talks on specific projects due to differences in time zones and business practices. “Could you grant us an opportunity to meet with you...” Numerous letters and messages with this request were sent to Minister Wadagni of the Republic of Benin’s Ministry of Economy and Finance, but failed to produce a response. Deciding that they needed to go in person to make any progress at all, HIRATO Hitomi, who was working in the Energy Solutions Finance Department, flew to Benin, accompanying the department’s then director general.
By pure coincidence, the minister was on the same plane. HIRATO and her boss were able to hold a meeting with the minister in a corner of the plane, which flung open the doors for the project. Although it was originally assumed that financing would be for an electrified lantern project for elementary schools, through the meeting on the plane and the ensuing meeting in Benin, it became clear that the government of Benin had also another project in mind requiring priority funding.
under a credit line with the Benin government

Local needs and concerns became clear through direct talks with the minister
The solar power generation project financing is for construction of a solar facility with a capacity of 25 MW and two substations within the grounds of an existing 50 MW solar plant, one of the country’s largest. “Expanding the supply of electricity produced by clean energy is expected to help promote Benin’s adoption of renewable energy and also improve the distorted energy structure that is dependent on other countries’ fossil fuels,” says HIRATO.
The electrified lantern project involved installing solar panels on the roofs of elementary schools in areas with no electricity access, and allowing students to take home lanterns that have been charged with the generated electricity. Japanese non-profit GOOD ON ROOFS had consulted JBIC on the implementation of this initiative in Benin, and the credit line agreement was signed with this as a candidate project.
“However, when we spoke with the minister, we learned that in addition to the lantern project, there was a need for larger-scale solar power generation as well,” says FUKAYA. Moreover, the minister had expressed concern about the sustainability of the lantern project. “He pointed out that the lanterns supplied to the children could be stolen, broken, or sold to obtain daily food.”
Although it is important to adjust a project while ascertaining the needs of the loan recipients, a project’s social contribution must not be overlooked. In the case of the lantern project, more children will be able to attend elementary school. According to HIRATO, “In the GOOD ON ROOFS project, the lanterns that the children take home would not only provide light for their homes but can also be used to recharge their parents’ cell phones. This gives parents an additional motivation to send their children to school.”

Receiving lanterns from elementary school children
Recognizing the potential for social contribution via finance
This is a small project compared to other loans to African countries that have been handled by the Energy Solutions Finance Department. Nevertheless, with the growing interest in ESG investment, and the movement to push socially significant projects such as in environmental conservation and education, “we became aware of JBIC’s potential in this field as well,” notes FUKAYA.
This was a small but important step in terms of Japan’s economic partnership with the Global South. JBIC’s support for the Global South focuses on carbon neutrality and solutions to social issues, emphasizing responses tailored to each country’s circumstances.
HIRATO, who handled the project on the ground, notes with pride that, “How serious the Benin government is about this can be seen from the fact that they opted for a loan, rather than aid or a yen loan. The fact that we could conduct discussions as equals should be mutually beneficial for further enhancing our bilateral relationship.”
JBIC will continue to ramp up its meticulously planned support initiatives for social contribution through finance, a key element to connecting Japan and the Global South.


Director, Division 3
Energy Solutions Finance Department
Energy and Natural Resources Finance Group
FUKAYA Satoko
Joined the bank in 2005. Handled sovereign credit assessment in the Country Credit Department; launched policy dialogue with the Indonesian government at the JBIC Representative Office in Jakarta; and engaged in work including providing a guarantee for Indonesia’s Samurai bonds, co-financing with the World Bank, and projects in Russia, Central Asia, and Africa in the finance divisions. She is now doing an impressive job juggling her work and parenting.


Division 3
Energy Solutions Finance Department
Energy and Natural Resources Finance Group (at that time)
HIRATO Hitomi
Joined the bank in 2022. Engaged in setting up GREEN projects for African governments and managing existing projects. Is currently a representative at the JBIC Representative Office in Paris. Graduated from Waseda University, School of Political Science and Economics, and received her Master’s in Communications, Media, and Creative Industries from Institut d’études politiques de Paris (Sciences Po).