Japan to Issue Bonds Worth $160 Million to Fund African Infrastructure and Development

Strategic Insights -

The Japan International Cooperation Agency (JICA) will issue bonds worth 23 billion yen ($160 million) next month to support infrastructure, education, and development needs of African nations. This move coincides with Japan's cohosting of the ninth Tokyo International Conference on African Development (TICAD) in Yokohama, where JICA aims to attract local governments, regional financial institutions, and Japanese companies to invest in Africa. The bonds, with maturities of either three or five years, are expected to nearly double the issuance volume of the Africa TICAD bonds from 2019. JICA plans to use the bonds to promote Japanese-style education and provide loans to farmers.

Key Takeaways:

  • The Japan International Cooperation Agency (JICA) will issue bonds worth 23 billion yen ($160 million) next month to support African infrastructure and development.
  • The bond issuance coincides with Japan's cohosting of the ninth Tokyo International Conference on African Development (TICAD) in Yokohama, aiming to attract local governments, regional financial institutions, and Japanese companies to invest in Africa.
  • The bonds, with maturities of either three or five years, are expected to offer growth opportunities for Japanese companies in the African market.
  • JICA plans to use the bonds to promote Japanese-style education that fosters discipline through school activities and provide loans to farmers via financial institutions.
  • The issuance volume of the Africa TICAD bonds is expected to nearly double from 12 billion yen, issued in 2019.
  • Motohiro Matsumura, director of JICA's Planning and TICAD Process Division, emphasized the growth potential of Africa, with its large young population, and the support that Japanese companies can offer through investment.

Statistics:

  • 23 billion yen ($160 million): The amount of bonds to be issued to support African infrastructure and development.
  • 12 billion yen: The 2019 issuance volume of the Africa TICAD bonds.
  • 2019: The year the previous Tokyo International Conference on African Development (TICAD) was held in Japan.
  • August 20-22: The dates of the ninth Tokyo International Conference on African Development (TICAD) in Yokohama.

Sources:

  • KYODO NEWS