Japan's state-owned Nippon Export and Investment Insurance (NEXI) will partner with the African Export-Import Bank (Afreximbank) to support the region's decarbonization efforts. NEXI has invested in the Nairobi-based African Trade Insurance Agency as well. As many businesses hesitate to make inroads into Africa, owing to political instability in parts of the continent, Japan is looking to help insure loans by Afreximbank and big Japanese banks to decarbonization-related businesses on the continent through the new deal. More than 90% of certain loans could be guaranteed by NEXI under the framework, which is expected to apply to Japanese companies as well as African state-owned businesses. It will cover the development of renewable energy, including solar, wind and geothermal power, as well as transition projects aimed at reducing emissions in stages, such as through switching facilities in heavily coal-reliant countries like South Africa to run on natural gas.

Source: Nikkei Asia