The Japan Bank for International Cooperation (JBIC) signed a memorandum of understanding (MoU) with the Development Bank of Namibia (DBN) on May 28 at the fourth Tokyo International Conference on African Development (TICAD IV) held in Yokohama.

The development follows on from the project finance seminar that JBIC held in Namibia last year, which was organised jointly with DBN. It is also incorporated into landscape of the "JBIC Facility for African Investment", an initiative announced by the government of Japan at TICAD IV which intends to supplement traditional JBIC instruments such as export credits, investment loans and untied loans. Under this initiative, JBIC intends to provide local currency loans and advisory services, as well as an increased use of JBIC's equity participation and guarantees facilities in order to support the financing and mobilising of Japanese private sector investment activities in Africa.

Under the terms of the MoU, JBIC and DBN will cooperate and share information relating to financial activities and operational strategies, as well as the investment climate and macroeconomic developments in both countries. Namibia boasts extensive natural resources such as diamonds, uranium and natural gas, and Japanese firms are involved in resource-related business opportunities and development projects in the country.

JBIC considers Namibia the most promising Sub-Saharan investment target, citing its membership of the Southern African Development Community (SADC) and successful application of liberal economic policies backed by political stability.

DBN is a wholly government-owned financial institution established in 2004 and has a mandate to promote national welfare by invigorating economic activities and infrastructure improvements. It is engaged in lending operations in support of infrastructure development and small and medium-sized enterprises (SMEs).