Japan's aid agency to issue 23 bil. yen Africa-support bonds in Aug.
The bond issuance will coincide with Japan's cohosting of the ninth Tokyo International Conference on African Development in Yokohama, near Tokyo, on Aug. 20-22.
Government-backed JICA is hoping to target local governments, regional financial institutions and Japanese companies that are seeking to invest in the fast-growing, resource-rich continent and encourage them to purchase the bonds, with maturities of either three or five years.
"As Africa, with its large young population, holds significant growth potential, support (through the bonds) will help Japanese companies expand into the region," said Motohiro Matsumura, director of JICA's Planning and TICAD Process Division.
The issuance volume of the Africa TICAD bonds is expected to nearly double from 12 billion yen, issued under a similar scheme in 2019, when the international conference known as TICAD was last held in Japan.
Part of the funds raised through the bonds then was used to finance projects such as the construction of a bridge over the Nile River in Uganda to support logistics, and in the building of geothermal infrastructure in Kenya.
For this time, JICA plans to use the bonds also to promote Japanese-style education that fosters discipline through school activities and provide loans to farmers via financial institutions.
Cohosted by Japan and several multinational organizations, TICAD has been held every three years since its fifth session in 2013. Prior to that, the conference took place every five years following its launch in 1993.
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