MUFG Bank in Yokohama City, Japan, announced the signing of a Memorandum of Understanding (MOU) with the African Export-Import Bank (Afreximbank) to provide a broad framework for collaboration between the two organisations.
Signed at the seventh TICAD event in Japan, the MOU will further strengthen the relationship between MUFG and Afreximbank, allowing for increased cooperation across Africa through the joint financing of transactions in Corporate, Project, and Sovereign financing, as well as enhancing the Trade Finance offering both organisations.
Takanori Sazaki, Regional Executive for MUFG in EMEA, said: “As we at MUFG seek to strengthen our presence across Africa through innovative opportunities, this MOU with Afreximbank is perfectly timed. The continent is undergoing remarkable growth and shows no sign of relenting due to market expansion and growth in investment from overseas.
“Japanese businesses are increasingly viewing Africa as a new frontier, as the seventh TICAD gathering clearly demonstrates, and we look forward to facilitating discussions with international organisations, private companies and government bodies to enable long-term investment and trade expansion as part of this.”
MUFG’s involvement in Africa goes back more than 90 years to 1926, when Yokohama Specie Bank, a forerunner of MUFG, opened an office in Egypt. Today MUFG has offices in Cairo, Egypt, and Johannesburg, South Africa.
Prof. Benedict Oramah, President of Afreximbank, said: “Afreximbank is proud to be signing this MOU with MUFG. It strengthens our already good relations built over the past several years. The MOU sets a solid foundation for reinforcing the economic bond between Africa and Japan at a time of increasing global trade tensions. It creates a unique opportunity for African businesses to benefit from MUFG’s increasing African presence while also enabling MUFG to enhance its offerings to Japanese entities seeking business opportunities across Africa.”
Afreximbank is the foremost pan-African multilateral financial institution devoted to financing and promoting intra-African trade and trade between Africa and the rest of the world. It works with international partners to leverage trade financing into Africa. The Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors. Since 1994, it has approved more than $67 billion in credit facilities for African businesses, including $7.2 billion in 2018. Afreximbank had total assets of $13.4 billion as at 31 December 2018. It is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch). The Bank is headquartered in Cairo.