Japan and Africa to boost trade ties

After a flurry of Chinese deals with African mining companies in late May, the Japan Bank for International Cooperation (JBIC) has signed a memorandum of understanding with the African Export-Import Bank (Afrexim).

Both parties used the memorandum to pledge their collaboration in financing to promote projects in Africa involving Japanese firms.

Furthermore, trade between African countries and Japan will get a boost from the memorandum, as both JBIC and Afrexim confirmed their intentions to actively promote trading activities.

This follows the Japanese government’s pledge in May, 2008 to contribute US$2.5bn in financial support for Africa, to be provided through JBIC, until 2013.

Recently, a Chinese consortium agreed a US$877mn facility with a South African mining company, and the China International Fund has signed a binding memorandum of understanding for a West African mining infrastructure deal potentially worth US$2.7bn.