Yokohama: The Japan International Cooperation Agency (JICA) is set to issue bonds worth approximately 23 billion yen ($160 million) next month to fund infrastructure, education, and other development initiatives in African nations. The bond issuance is scheduled to coincide with the ninth Tokyo International Conference on African Development (TICAD), which Japan will cohost in Yokohama from August 20-22.
According to Emirates News Agency, the government-backed JICA aims to attract investments from local governments, regional financial institutions, and Japanese companies interested in the rapidly developing, resource-rich African continent. These entities are encouraged to purchase the bonds, which will have 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," stated Motohiro Matsumura, director of JICA's Planning and TICAD Process Division.
The issuance volume of the Africa TICAD bonds is projected to nearly double from the 12 billion yen issued in 2019, when TICAD was last held in Japan. This time, JICA plans to allocate the funds to promote Japanese-style education that emphasizes discipline through school activities and to provide loans to farmers via financial institutions.
