Brookings Institution June 13, 2014 Japanese Outward FDI - by FDI - - PowerPoint PPT Presentation

Brookings Institution

June 13, 2014

1 MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

Japanese Outward FDI - by FDI stock (in USD millions) Japan

United Kingdom $53,812 Australia $61,181 South Africa $ 2,443 Brazil $35,308 Canada $14,474 Indonesia $18,378 Korea $25,526 Vietnam $8,393 India $15,067 Malaysia $13,277 Rest of Africa $ 6,874

Source: UNCTAD

0% 1% 1% 1% 2% 3% 5% 6% 9% 28%

China $92,967 USA $285,767

9% 2% 1% 1%

Netherlands $94,193

Base line: total Japanese Outward FDI by FDI stock: 1,037,698

2 MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 35589 16573 9828 7879 7813 1850 5000 10000 15000 20000 25000 30000 35000 40000 China Brazil Thailand Indonesia India Africa 937 699 154 19 17 9 7 7 4 4 2 1

• 1
• 9
• 200

200 400 600 800 1000

Top Developing Country Destinations for Japanese OFDI – Net Cumulative 3 (2010-2012) in USD millions

Source: UNCTAD

3 MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

MIGA’s Experience in Africa

MIGA’s Regional Support for Japanese Clients (US$ million)

21.5 48.1 351 150

Africa Asia & the Pacific Middle East Latin America & the Caribbean

New Issuances by Region (US$ billion)

0.34 0.24 0.87 1.67 0.55 0.31 0.49 1.08 1.08 0.83 0.54 0.35 0.20 0.07 0.5 1 1.5 2 2.5 3 FY10 FY11 FY12 FY13 1.46 1.89 2.78 2.56 Africa Asia & the Pacific Europe &Central Asia Latin America & the Caribbean

4 MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

Projects Currently Supported by MIGA

Azito Power Plant

• Ivory Coast, Power, 2012
• USD 116 Mn, 20yrs
• Equity
• BOC

Seawater Desalination Project

• Ghana, Water, 2012
• USD 180Mn, up to 20yrs
• Equity, Debt, Swap
• WCD, TR, Expro, BOC

HKB Bridge in Abidjan

• Ivory Coast, Transport,

2012

• USD 145 Mn, 15yrs
• Equity & Debt
• WCD, TR, Expro, BOC

Chobe Agrivision Company

• Zambia, Agribusiness, 2013
• USD 50Mn, 15yrs
• Equity
• WCD, TR, Expro, BOC

Doraleh Container Terminal

• Djibouti, Transport, 2007
• USD 430Mn, 10yrs
• Equity, Debt, Swap
• WCD, TR, Expro, BOC

Olkaria GeoThermal Power in Kenya

• Kenya, Power, 2011
• USD 99Mn, 15yrs
• Equity
• WCD, TR, Expro

Active projects in Africa

As of May 31st 2013

5 MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

Africa – Outlook and Opportunity Higher growth, high returns



Average growth rate of 5% for the last decade, even in the face of global crisis, with projections

• f the same



2010 UN estimated returns on US FDI in Africa at 20%, compared to 14% in LAC and 15% in Asia



Fastest growing population globally, expected to double in 40 years

Infrastructure needs…and opportunities for private sector on their own or in PPPs



Huge needs for infrastructure in power, transportation, and schools



US$45bn spent on infrastructure annually. Huge funding deficit - US$90-100 billion a year is needed

Operations and maintenance…

6 MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

Japanese Investors bring potential O&M efficiency to the table Government Funding 65% ODA 14% Private Sector Funding 21% Current Sources of Financing

Not only do Japanese partners play an important role in terms of funding but also on tackling the efficiency gains … Through

• perations and

management gains

$17 billion $ 31 billion Efficiency Gap Funding Gap $45 billion $93 billion in funding needs

7 MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

Risks Covered by MIGA

Political Risk Insurance (PRI) Credit Risk Transfer restriction & currency inconvertibility Expropriation War & civil disturbance Breach of contract Sovereign Sub-sovereign State-owned enterprise

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