JBIC Today

August 2019

Special Feature

Learning about Africa▶ What is the key point to understand this area?

▶ Growth Potential of Africa and Business Opportunity for Japanese companies▶ China, India, Turkey... Latest developments in other countries

The Focus / Our Global Challenges

英文組合せシステム

Our “Blue Ocean” Strategy; Helping us Achieve Growth

Latest Report From Young Staffs

Project Frontline▶ The Emirate of Sharjah; Development of large power plants to meet rising electricity demand▶ Loan to the Banco de la Nación Argentina to support Japanese companies’ business opportunities in Argentina▶ Identifying deep-tech startups with advanced technology; Eyes are now on the Nordic and Baltic region

FeatureFeaturethe African economy, Mr. Hosono explains

source prices, fiscal consolidation, and fiscalthat it is important to understand the regional

buffers building are very important. At theissues pointed out in the International Mon-same time, the reports indicate the significanceetary Fundʼs (IMF) “World l Economic Out-and potential of mobilization of private-sectorlook” and “Regional Economic Outlook forcapital as well as diversification of economic

Sub-Saharan Africa” . “According to the IMFʼs

structures of African countries. Given this, I

outlook reports published in April 2019, thebelieve that African industryʼs horizons arepolicy response to fluctuations in natural re-

expected to broaden in future.” (Hosono) ↙

Katsumi Hirano Ph.D.

Learning about the future of Africa from its social structures

Special Feature Learning about Africa

What is the key point to understand this area?
Various reforms are being implemented in Africa where abundant resources and population increases draw attention. We looked into the ways of how Japanese companies canenter business in Africa.

Executive Vice President, IDE-JETRO

economic power, global demand for resources

Integrated into the world
economy as a major resource
producerincreased sharply by about 30%. In order tofacturing. In such a pattern, the population issecure a considerable share of additional 30%,

steadily increased to make its population-den-

China has invested in the development ofsity highest in the world and the income tends

On the other hand, Dr. Katsumi Hirano,

resources in Africa. As a result, Africa has been

to be equalized (i.e. the middle class of pop-

Executive Vice President of JETRO, who spe-completely integrated into the global economy

ulation expands) as economy develops. How-

cializes in Africa studies and development eco-since the start of the 21st century, as a majorever, this shows merely one growth pattern. In

nomics, points out the following. “Economic

resource producer to meet significant increase

Africa, when economy grows, income becomesgrowth in Africa is linked to movements inin global demand for resources.” (Dr. Hirano)

rather unbalanced and the poorest segment of

resource prices. Resource prices continued
Africa, the second largest of the six con-ing from energy resources like petroleum, toare examples of how African countries areto soar from the Iraq war in 2003 to aroundgap between rich and poor continues to betinents in the world after the Eurasian con-minerals and food, and high demand can beadvancing reforms, promoting investment and2014, accelerating economic growth across all

widened with economic growth.” (Dr. Hira-tinent, is highly diverse in terms of climates,

expected for industries developing such re-consolidating public finance.” (Hosono)of Africa, with some exceptions.”

Note that growth patterns arevery different from East Asia

no).

cultures and countries. What are the key

sources. The population of Africa continues to

In Angola and South Africa, policies such

In light of this fact, it seems that the local

points for understanding the entire region ofgrow and economies have also progressed. As

as reform of state-owned enterprises and theeconomy would likely slow down if resources

Africa? According to Kenji Hosono, Director

evidenced by increasing automobile ownershipuse of private investment are pushed forward

prices weaken, but it is too early to jump toic growth is driven by resource demand, as

in addition to understanding the differences

General of Country Credit Department ofand use, consumer purchasing power is also

to attract the inflow of foreign capital. To

any conclusions. According to Dr. Hirano,

explained above, it should be noted that itsof these social structures and economic con-

The key to success in Africa is to conduct
When looking at Africa where econom-

business by thoroughly analyzing local needs

Japan Bank for International Cooperation

rising. Infrastructure development will alsoachieve high growth by taking advantage ofAfrica already occupies a weighty position in

growth patterns are greatly different fromditions. “For instance, demand for money(JBIC), there are three keywords that shouldcome into full swing and demand for related

the growth potential described earlier, it will

the global economy. “In fact, until the end ofJapan and East Asian countries, Dr. Hiranotransfers in Africa is the highest in the world,

be noted for exploring the potential of Africa,

fields is likely to expand. Regional integration

be indispensable for African countries to focus

the 20th century, Africa was not expected tosaid. “Japan and other East Asian countries

perhaps given the security concerns there.

which are: i) abundant resources, ii) growing

is progressing within this vast continent with

their efforts on economic reform and improve-be a one of major sources of natural resources.

have historically achieved economic progress

Based on this backdrop, The Standard Bank

population and iii)intra and extra-regional

free trade agreements in the region. In addi-

ment of investment environments.

However, with the rise of China as a major

through paddy cultivation and then manu-

of South Africa Limited has developed theirconnectivity.
“Africa has a wealth of resources, rang-

tion, given that Africa is located at a strategic

So, assuming that such a policy will be

own remittance networks throughout Africa.

point that connects Europe and Asia, its geo-

implemented, how can Japanese companies

Recently, M-Pesa has also received strong sup-graphical advantage is also high.” (Hosono)join in the business for Africa? “The first thing

Angola and South Africa
promote reforms with thechange in regime

law, tax, accounting and investment approval

port for their mobile money transfer services

Ivory Coast

Kenya

South Africa

20.0

in Kenya.” (Dr. Hirano)This trend is not limited to Africa. Given
the growing population of the world over the

15.0

medium to long term, it is likely that income

10.0

inequality will spread not only in Africa but

5.0

also around the world. In other words, it will

about their unstable political and economic

for private companies to make direct invest-

be needed to respond to different life needs

ment will also be improved. This may con-0

situation. However, movements promoting
various reforms are progressing in the vastfrom different segments of population, instead
2019

2018

2017

2016

2015

2014

2013

2012

2011

To understand the current situation of2010

are held peacefully. Angola and South Africa

2009facilities and the electrification of railways.”(Hosono)2008

zation. However, many African countries haveproceeded with democratization as elections

2007

business target.

2006

-10.0

for the renovation of aging power generation

2005

construction of new infrastructure, but also

2004

region of Africa. “Indeed, there has been
political turmoil in the process of democrati-

2003

of setting the middle class of population as the
2002

tribute in expanding demand not only for the

-5.0
2001

August 2019 │ JBIC Today

if progress is made in enhancing systems forAngola2000

Director General of Country Credit Department,
Credit, Assessment andRisk Management Group, JBIC

such as power and infrastructure. In addition,（％）

procedures make progress, the environment

News on African countries tends to be

Kenji Hosono

of business areas where demand will grow,Real GDP growth rate in four countries▲

we can expect to do is to export equipment2

the population expands. In other words, the* Forecasts since 2016 for Côte d'Ivoire and since 2017 for other countries
Source: IMF "World Economic Outlook Database" (April, 2019)

In that sense, responding to the needsof the African market from the current stage
should be an effective means to analyze thefuture trends of the global market.
August 2019 │ JBIC Today3FeatureFeature©Thomas RenautSpecial Feature Learning about Africa

Growth Potential of Africa and Business Opportunity forJapanese Companies©CFAO Group all rights

Interview with Richard Bielle, Chairman and CEO of CFAO Doing Business in Africa for
160 Years; CFAO Joined Toyota Tsusho in 2012

S

tarting business in Africa inrican crises, the devaluation of the CFA franc

segments, we decided to adapt our offerings

1852, CFAO has continued

and the 2008 crisis without disappearing andand our expertises to better penetrate thenever leaving Africa.

private customer segment in three strategic

business deployment in the region

in France and Japan in order to facilitate

First, Japan has an excellent image inslowly.

mutual understanding between the TTC andAfrica because of the good results of ODA and

CFAO teams and to share best practices andthe success of TICAD. Japanese companies

frican countries move toward

promote synergies. In April 2017, this searchwishing to enter the African market therefore

forming a Continental Free

for synergies accelerated with the consolida-

already benefit from this positive image.

Trade Area (AfCFTA) agreement.

tion of the African activities of CFAO andTTC.

AInternational deployment cannot depend

for more than 160 years. What ad-

One of CFAOʼs strengths is its pan-Af-

sectors: the automotive sector, healthcare andAmid this, what business opportu-

vantages has your company gained

rican presence. We are located in 36 countries

consumer goods. This strategic orientation

nities do you think will be createdfrom this long-term business expe-and have an indirect presence in 18 others.

has led to an enrichment of our offerings offor CFAO?

rience in Africa?

This geographical diversity allows us to poolproducts and services in the automotive sector,

Economic integration in Africa is un-

while CFAO has been able to demonstratefabric is made up of small companies andsolely on large groups. It is necessary to rely

In addition, we have common values,

on a network of smaller players that are nec-

such as respect and humility, and we also com-essarily more flexible and agile. All the more

plement one another a great deal. Therefore,so given that, in Africa, 90% of the economic

Present for more than 165 years in Africa,

our risks. Another fundamental asset is ourparticularly with cars and motorcycles that

CFAO has in-depth knowledge of its markets

doubtedly one of the key issues for the conti-

presence in several business lines: industrial

are more adapted to the purchasing power ofand unique know-how. CFAO went throughprivate customers. It has also led to a strength-

nent. This CFTA project would contribute toits agility, entrepreneurship and performancemicro-entities. It is therefore necessary to beequipment, healthcare and consumer goods,

two world wars, decolonisation, numerous Af-

the economic transformation of the continent.

for 167 years, TTC provides us with its very

able to address these players by being agile andwhich have different and complementaryening of our partnerships with Suzuki andgrowth profiles. This diversity, both geograph-

Today, to move a container between Mombasa

long-term vision, its operational efficiency andflexible ourselves.

Yamaha, and has triggered a first foray into the(Kenya) and Kampala (Uganda) for example,

continuous improvement approaches. As such,

The growth sectors are many, but someical and sectoral, is very important for poolingused vehicle market.

risks and delivering stable growth that exceeds
the GDP growth of the continent.

C

Chairman and Chief Executive Officer, CFAO
CEO for Africa Division, TTC©Patrick Sagnes

August 2019 │ JBIC Today

we are gradually deploying the Kaizen andare particularly relevant in this context. Fortime as to send the same container fromAnzen approaches on our sites with the active

example, education attracts many investors.

segment is the supermarkets and shopping

Shanghai to Mombasa. Africa also suffers fromsupport of TTC. TTC also allows us to begin

Renewable energies, as well as housing and

FAO has published a research

first shopping centre, “PlaYce”, in December

report about the middle class2015 in Abidjan (Côte dʼIvoire). We are cur-in Africa, along with research insti-

rently developing in 3 countries -Côte dʼIvoire,tutes. What is your business strat-

Senegal and Cameroon- with PlaYce shopping

egy aimed at the middle class incentres with shopping malls and local stores

Africa which has increased in size

such as “Carrefour Market” supermarkets andand purchasing power?

“Supeco”. Itʼs an exciting challenge that is

CFAO is the rise of the middle class in Africa.

Richard Biellea little over 1000 km, it takes almost as much

Our most emblematic project in the B2C
centres development project. We opened our

One of the main growth drivers for4

remains low and which is still progressing too

changing the profile of the CFAO Group, andcreates many direct and indirect jobs.

the fragmentation of its economies, with sev-

or expedite partnership projects with certain

healthcare, also represent enormous opportu-

eral countries that do not yet have the critical

Japanese economic players in the automotive

nities. The most important thing is to propose

market size to interest brands or large-scaleor consumer goods sectors.

a humble, adaptable and long-term approachprojects. The role of CFTA project is to give achance to these smaller markets, to approach
Africa by market and no longer by country.

CJ

in order to nurture a profitable and equitableapanese companies have been

relationship. In this, the Japanese approach istrying to enter the African

the right one.

market despite their geographical

FAO joined Toyota Tsusho

and historical distance. Could you

Group in 2012. What synergy

also tell us about if there is any

effects can you expect from col-good way for Japanese companies

Our customers were historically largely pro-

What we think is key for meeting the ex-laborating with Toyota Tsusho inincluding small and medium-sized

fessional customers: pharmacists, companies,

pectations of the middle class is to offer qual-

African business with the focus onenterprises and venture companies

NGOs and administrations. Without giving

ity products and services at affordable prices,

speciﬁc sectors?

to establish good relations with Af-

up on strengthening our leadership in B2B

to take into account purchasing power which

In 2012, TTC set up an “Alliance” teamrican countries?

■ CFAO Corporate Profile

Established 1852
Number of employees 15,500 (on a consolidated basis)
Sales EUR4.4 billion (as of end of March 2019)
Head Office Based in Paris, France
President Richard Bielle
Business Export/import of automobiles, wholesale ofpharmaceuticals

August 2019 │ JBIC Today

5FeatureFeatureSpecial Feature Learning about Africa

China, India, Turkey... Latest developments in other countries
The geopolitical and historical connection between Africa and countries investing in the region is an essential part of understanding Africa.
What are these countries focusing on in Africa and how are they developing their relationships with African nations?
JBIC’s chief representatives covering these countries analyze the African strategies of each nation.

China

The priority areas change as thecountry's economy develops;
Shifting to development cooperation inenvironment, healthcare,education and peace and security

Motofumi Ochi

Chief Representative in Beijing, JBIC

The history of Chinaʼs relationship with African countries
is long, dating back to South-South Cooperation (exchangeof support and assistance among developing countries) in the
1950s which came immediately after the founding of the Peopleʼs Republic of China. Entering this century, as the Chinese
economy developed, their approach to Africa has been changed
to focusing on the securing of the natural resources they needed. The main Chinese players expanding to Africa are large
state-owned companies engaged in infrastructure construction
and resource development. However, the “Beijing Action Plan”
of the Forum on China-Africa Cooperation (FOCAC) (20192021) held last year shows that China will shift its priority areas
to development cooperation in environment, capacity building,healthcare, education and public welfare. Furthermore, there isa movement to build economic and trade cooperation zones inAfrican countries and to attract investments into telecommunications and financial sectors in the region.
Chinaʼs investment in Africa is vigorous, as illustrated
above, and the industry sectors they are investing in are diverse.
Therefore, if Japanese companies plan to expand to Africa, theymight benefit much from working with Chinese companies. As
6

August 2019 │ JBIC Today

China has recently begun to focus on diversifying risk by working with other countries from the perspective of international
cooperation, I believe that Japanese companies can expect toseek win-win partnerships with Chinese companies.

abad, Prime Minister Modiʼs political base, in 2017. Furthermore, India has taken an approach to facilitate the overseas
deployment of a solar energy expansion program, which is oneof its domestic energy policies, by combining industrial policy
with foreign policy. Prime Minister Modi jointly launched theframework of the International Solar Alliance (ISA) with the
French government. Under the ISA framework agreement, theExport-Import Bank of India has actively supported solar power
projects in Africa.
The Export-Import Bank of India provides loans to financebusinesses in Africa, including infrastructure development forelectricity and water and export of automobiles and buses. They
also provide financing for overseas investment in agriculture,
textiles and steel sectors. There are not many examples of partnerships for investment in Africa between Japanese and Indiancompanies, but I think that finding a mutual benefit to be derived from cooperation between Japan and India will lead to thenext step in forming an alliance for African business.

India

Restoring its presence in Africa;
Rebuilding the relationship throughboth industrial and foreign policies

Ichiro Hayashidani

Chief Representative in New Deli, JBIC

Although the connection between India and Africa has along and deep history, there had not been so many diplomatic
approaches to Africa taken by India. India rather positioned
Africa as a base for production and investment to satisfy its
domestic demand. However, heading into the late 2000s, China
approached Africa more rapidly and the Indian government
began to become aware of strengthening relations with Africa.
In 2008, the Government of India held the India-Africa Forum
Summit (IAFS) for the first time, with an aim to strengthen
diplomatic relationships with African countries. The Modi administration, which inaugurated in 2014, has made an active
effort to build relationships with African nations, such as hosting the third IAFS meeting in Delhi in 2015 and the annual
meeting of the African Development Bank (AfDB) in Ahmed-

Providing quality infrastructure for
the Namibe Port, Angola
Ayaka Itagaki Unit 3 of Oil and Gas Finance Department
Located in southwestern Africa, the Republic of Angola is about
3.3 times the size of Japan, with a population of 28,810,000. Its capital is Luanda. The country is recovering from a civil war that had continued for 27 years.
In January 2019, JBIC set up an export credit line for the Government of Angola and signed two individual loan agreements in March.
These loans are intended to finance two projects implemented byAngola’s Ministry of Transport, which are the Namibe port expansion
and the Sacomar export terminal rehabilitation. These loans support
export of construction materials and services by Toyota Tsusho Corporation and Toa Corporation.
Expanding the Namibe container terminal port is expected toreduce Angola’s dependence on using the ports of neighboring Namibia as well as revitalize the economy of southern Angola. In addi-

TurkeyThe network across Africa will
accelerate the companies' expansion
into the region

Kazushige Gobe

Chief Representative in Paris, JBIC

What are geopolitical and historical connections with Africa?

PickUp JBIC Activity

Turkeyʼs policies for Africa are not a recent development.
President Erdogan has been undertaking various initiatives since2003 to strengthen relations with African countries. Positioning
Year 2005 as the “Year of Africa”, Turkey has been increasing
the number of its embassies in Africa. In 2008, the first Turkey-Africa Cooperation Summit was held. As a result of these
efforts, the Turkey-Africa Business Forum held in Istanbul in
October 2018 attracted 7,000 participants from 43 countries inAfrica.
Turkeyʼs investment in Africa is expected to continue toexpand in the future. There are two main reasons behind this.
One is that the number of Turkish embassies in Africa rapidly
increased due to the above-mentioned initiative, reaching 41
in the region as of the end of 2018. Now Turkey has the largest
number of embassies in Africa following those of the UnitedStates, China and France. The other reason is that the national
airline, Turkish Airlines, launched regular flights to 54 African
cities. These two networks are likely to encourage Turkish companies to expand into Africa.
Cooperation with Japanese companies is greatly expected.
Turkish companies are characterized by its proactive risk-taking
approach and quick top-down decision making. I believe thatcombining these Turkish aspects and technological and financial
capabilities of Japanese companies can complement each otherto become a strong coalition.

tion, the rehabilitation of the Sacomar port used to export iron ore
extracted from the Casinga mine is anticipated to export more ironore, which will help Angola to access foreign currencies and diversify
its economy.
JBIC, along with ToyotaTsusho and Toa, made a proposal to
the Government of Angola to deliver the both projects as packaged
projects. The expansion of the Namibe port is a project where Toyota
Tsusho has been working for 10 years, while the rehabilitation of the
Sacomar port is a top-priority project of the Government of Angola.
This proposal was successful, enabling Toyota Tsusho and Toa toreceive an order from the Government of Angola. This project is thefirst large-scale port development project in Angola where Japanesecompanies participate.
President Lourenço has begun to strengthen his political baseand implement both administrative and fiscal reforms, while joining a new financing program offered by the International Monetary
Fund (IMF) to support Angola’s economic reform efforts. Under suchsituation, JBIC was able to propose financing arrangements that considered the debt sustainability of Angola, sharing information about
these projects with the IMF. We wish for the future economic development of Angola and the further expansion of Japanese companies
into Africa.

Staff members from Unit 3 of Oil and Gas Finance Department in charge of this project.
From left, Director Kato, officer Itagaki and Advisor Hosojima.

August 2019 │ JBIC Today

7

The Focus

Our Global Challenges

Our “Blue Ocean” Strategy;
Helping us Achieve Growth

Left / Refrigerated vehicle owned by JET8 (Thailand) Co.,
Ltd. In Thailand, this vehicle is used for their door-to-doorinternational courier services.
Right / Safe and secured service. JET8 also provides
customized marine container stuffing work service according
to customer requests (in Thailand).

―JET8 Co., Ltd.

Entering the new market of international courier services for chilled and frozen goods, JET 8 Co.,
Ltd., headquarter in Tokyo Japan, continues to expand business overseas. We asked Mr. Nishi,
president of the company, how the business idea came from.

Provideservices tosave ourcustomer’stime andeffort!

What kind of products or services do I
want? This is one way to think about a new business. If you can provide something that is needed
but does not exist in the world, you will be able
to sail into that blue ocean. It will be a market
with less competition and greater potential. JET8
opened the path to overseas expansion based on
this concept.

Reflecting on his own
experiences and strategizing
With overseas logistics services as their main
business, JET8 has been continuing to challenge
overseas expansion since its founding in 2004
based on their “Blue Ocean Strategy.” Their
strategy aims to maximize profits by opening up
a new market space and providing users withhigh-value-added services at low costs.
What kind of market is created by JET8?
It is international shipping services of small
goods requiring temperature control, such as
pharmaceuticals, chemical materials and food.
These transportation services are known as “international courier services for chilled and frozen
goods”.
According to Mr. Masahiro Nishi, president
and CEO of the company, he got this idea fromhis own experience when studying in London. “I
missed Japanese food and I tried to have my parents send it to me, but at that time there was no
method to ship chilled and frozen food and I remember having to give up. After starting my own
business, I encountered the Blue Ocean Strategy
book and it reminded me of my experience when
I was in London. I thought to myself, an international courier service business for chilled andMasahiro Nishi
President and CEO of JET8 Co., Ltd.
(HQ in Tokyo, Japan)

8August 2019 │ JBIC Todayfrozen goods might be my Blue Ocean. Conducting a research about international logistics
business, I found out that port-to-port logistics
services with temperature-controlled distribution
did exist, but not door-to-door international
courier services for chilled and frozen goods. I
thought, this is our Blue Ocean.”Being able to deliver chilled and frozen
items directly from a sender to the door of the recipient is adding value. On top of this, Mr. Nishi
was thinking of providing documentation services for import and export shipments. Throughthese services associated with international shipments, he also added positive “differentiation” tohis overseas strategy.
Mr. Nishi continues, “Many people werestrongly against my idea. They said it is shipperʼs
responsibilities to prepare their own documentsfor quarantine and customs clearance. Critics also
said providing documentation services for export
and import shipments would pose a great risk
and liability. However, for our clients (researchersand engineers), preparing shipment documents
is outside their specialty. Arranging for shipping
documents simply wastes their precious time,
which they can use for their research and development work. JET8 not only provides courier
services but also focuses on supporting clients tooptimize and maximize the research and development skills in Japan. From this aspect, I thought
our documentation services must be necessary

Cargo bed of refrigerated car.
The "specimen" specified to be
refrigerated by the hospital istransported with temperature
control vehicle. JET8 also provides a service which preparesshipping documents necessary
for shipments. This service
greatly differentiates JET8
from other logistic companies.

for some users.”
As the company did not have the knowhow to prepare documents for international shipments, there were some failures in the beginning.
However, JET8 learned and improved from such
failures, JET8 became a company which provides
a high-added value to clients, through international shipping documentation services that other companies do not wish to be engaged in. Thisis one of the reasons why clients choose JET8 forinternational logistical needs.

Enhancing credibility from othercompanies through financing
from JBIC
The business expansion of JET8 continues.
To grow business in Thailand, JET8 (Thailand)Co., Ltd., a subsidiary of JET8, has obtained
funding for the international freight transportation business from JBIC in the form of across-border loan in the local currency. When theThai subsidiary was established in 2009, there
was a definite need of freight transportation in
Thailand where the middle class population was
growing. This prompted the company to form
another subsidiary in neighboring Myanmar
to build a transportation network between thetwo countries, which enabled the company toaccumulate experience in the business of international freight services in ASEAN. As a result of
these tenacious efforts by the company, they haveachieved rapid growth with increases in annual
sales of 20% on average in the last five years. Mr.
Nishi explains, “Thai people tend to go to clinic
to get prescription medicines, even if they feel
only slightly sick. For this reason, the amount ofhealthcare costs they are spending is increasing
considerably along with the rise in income. The
proportion of sales to Japanese customers to total
sales of the Thai subsidiary is merely 10%. We
are proud to have been able to firmly capture thelocal needs of inter-hospital transportation in
Thailand, by promoting sales strategies rooted in
the local market.”
The fund-raising this time is intended tobuild local office and warehouses and lay thefoundation for further leaps in business, but

Mr. Nishi continues firmly saying they can also
expect other advantages. “As the economy matures, high reliability is requested for companies.
The fact that our subsidiary was able to receive
financing directly from JBIC, Japanʼs public financial institution, not in the form of a two-steploan through a parent company, will no doubt
enhance the credibility of our company in the
future.”
The company is currently expanding business in countries like Myanmar and Bangladesh.
In these countries, they focus on the importbusiness of large-sized machinery and materials
related to construction of plants and facilities,
capitalizing on Mr. Nishiʼs experience in civilengineering and social infrastructure development. Another subsidiary in Canada engages intrade business and JET8 plans to expand into
Azerbaijan and Georgia in search of further Blue
Oceans.
Mr. Nishi says, “One thing we have become
keenly aware of by being active on a global scaleis that we have no hope of being competitive
without ʻsomething special and uniqueʼ about
our business. However, recently management
tends to become defensive because they think
too much about reducing the debt in the balance sheet. That, I think, is not an approach toseek competitive advantages. I believe that you
can acquire “something special and unique” fordoing business, by taking on new challenges andlearning new skills and knowledge, although you
might face difficulties. If you want to be globallycompetitive, ʻyou have to keep going, no matter
how many burdens you hold!ʼ Thatʼs what I wantto convey!”

Arm yourself
with"something
special andunique" tofight and win
abroad!

Employees of JET8 (Thailand) Co., Ltd., surrounding President
Nishi (front row, third from right). Continue rapid growth led
by transportation needs between hospitals in Thailand.

Corporate Data

JET8 Co., Ltd.
Founded 2004
Total capital JPY 158.8 million.
Business Transportation of air freight mainly for international express cargo
Overland freight forwarding on vehicles accompanying air freight transportation
Warehousing and packaging industry
Customs service operations for international air freight transportation
Headquarters 5-28-7 Honkomagome, Bunkyo-ku, Tokyo
Relation with JBIC
To grow business in Thailand, JET8 (Thailand) Co., Ltd., a subsidiary of JET8, has obtained funding for theinternational freight transportation business from JBIC in the form of a cross-border loan in the local currency.

August 2019 │ JBIC Today

9Project Frontline

Latest Report From Young Staffs

JBIC is working on various projects around the world.
Young staffs report on the significance of the latest projects and the role of JBIC.

Loan to the Banco de la Nación Argentina to support Japanese companiesʼ business
opportunities in Argentina
My team from Tokyo also frequently visited the bank for negotia-

The Emirate of Sharjah, one of the emirates of the UAE;
Development of large power plants to meet rising electricity demand

tions. Despite the good relationship, tense negotiations continued
because there were terms and conditions of the loan agreementthat both parties had difficulty with agreeing on. The last and mostdifficult issue was about the timing of signing the loan agreement.
Both parties had a strong desire to implement the signing ceremony
before the G20 Buenos Aires Summit beginning on November 30,
2018, and we struggled to finish loan negotiations and related proThe signing ceremony held in Buenos Aires on November 29, 2018.

E

cedures in time for the Summit.
We got an internal approval for the loan agreement just two days

xperiencing the economic stagnation after declaring a default

before the signing ceremony and jumped on a plane to Argentina

in 2001, Argentina just returned to the international financial

carrying the freshly-completed contract. I was wrapped up in anmarkets in 2015. Argentina has had strong economic ties with Japan

enormous sense of accomplishment on the return flight after having

for long time and there are many Japanese companies wishing tocompleted the signing ceremony safely.

resume the export of infrastructure-related equipments to the country. After exploring ways to encourage Japanese companies to ex-

profilepand to Argentina, JBIC decided to set up a credit line for the Banco
de la Nación Argentina, the largest commercial bank in the country,
to support the export of Japanese products.

Takashi Yonemura
Unit 1 of Mining and Metals Finance Department,
Energy and Natural Resources Finance Group

This loan is provided under JBIC’s “Special Operations” whichstarted in October 2016. This is the first time in 20 years that JBIC
makes a loan to the bank. JBIC’s representative office in Buenos
Aires has maintained relations with the bank by serving as a liaison.

Above / View of the city of the Emirate of Sharjah,
located in the northeast of Dubai.

W

Hamriyah gas-fired combined cycle power plant to be built.

hen you hear the word “the United Arab Emirates (UAE)”,

I visited the emirate twice on business trips, in the summer andyou might think of abundant oil resources. However, theautumn of 2018. As this was going to be the first time for JBIC to

Emirate of Sharjah, one of the seven emirates that comprise theprovide financing to the emirate, we met with government officials

UAE, is different. With less resources compared to other major emir-and the other related parties during the business trip in summer toates, the Emirate of Sharjah has diverse industries. With regards togather more information about the emirate.

electricity, about 50% of their power supply is dependent on the

During the autumn trip, we visited the site for the power plant

Emirate of Abu Dhabi, and the remainder is supplied by their own

to investigate the environmental impact of the project. Visiting theaging power plants.

Identifying deep-tech startups with advanced technology;
Eyes are now on the Nordic and Baltic regionT

he Nordic and Baltic region has established itself as one of theworld’s leading startup hubs thanks to the former Nokia work-ers and the support programs for tech startups provided by govern-

Emirate of Sharjah allowed me to learn more about the economic

mental institutions. Having many tech companies with advanced

Amid continued increase in electricity demand due to economic

environment of the emirate and feel the strong expectations to-technologies such as IoT or AI, the region is also known as the “Silicon

growth, the Government of Sharjah is promoting development ofwards the construction of the new power plant; this was something

Valley of Europe”.

large-scale, high-efficiency power plants. The Hamriyah gas-fired

I could only gain from such hands-on experiences.

Following the creation of the Equity Finance Group in Octobercombined cycle power project, which I am in charge of, is one ofThis was the first time for me to deal with a project until financial

2016, JBIC jointly established JBIC IG Partners (JBIC IG) in June 2017

them. The project is being developed by Sharjah Hamriyah Indepen-close. With the support from my team who have experience andwith Industrial Growth Platform, Inc. (IGPI). JBIC IG launched a funddent Power Company PJSC (SHIPCO), a consortium of Sumitomo Cor-knowledge in project financing, I was able to work on challenging

investing in deep-tech startups in the Nordic and Baltic region, in

poration, Shikoku Electric Power, a subsidiary of General Electrics,

tasks such as contract negotiation, risk analysis and project coordi-

collaboration with AS BaltCap, a leading PE/VC fund manager in theand a subsidiary of the Sharjah government. It is being co-financed

nation.

Baltic States based in Estonia. JBIC invests up to EUR40 million in theby JBIC and private financial institutions; the private-sector loan ispartly covered by Nippon Export and Investment Insurance, NEXI.

Overall, the experiences of this challenging project are an extremely valuable asset for me.

The event of the announcement of the fund launch

fund.
Participated by OMRON, Panasonic and Honda Motor, together

SHIPCO will construct, own and operate a 1,800MW gas-fired combined cycle power plant located in Hamriyah, the Emirate of Sharjah. This power plant is expected to start commercial operations in
May 2023. This is the first project in the emirate that is implemented
by an Independent Power Producer (IPP) who builds and operates
power facilities and generates electricity available for sale. It waswith JBIC, the fund started with an investment size of EUR100 mil-profileChihiro Karakawa
Unit 2 of New Energy and Power Finance
Department I, Infrastructure and Environment
Finance Group (then)profileRyoko Ichihara
Deputy Director
Division 3 of Equity Investment Department,
Equity Finance Group2017 when JBIC had the first preliminary meeting with the sponsors
regarding the project. I was placed in charge of this project in April
2018 when a full-scale negotiation on the project started.

10

August 2019 │ JBIC Today"It is great to be able to flexibly challenge even things that are
unprecedented. Moving ahead with a repeated trial and error
approach helps me grow as well"lion. We hope that we can not only provide a return on investment
from the fund, but also support those investors in collaborating withlocal deep-tech companies including exploring opportunities for acquisitions. It was a very exciting experience for me to be engaged in
the process of creating the fund through working closely with JBIC
IG. However, the fund is still in its beginning stages and I believe it’s

"It is difficult to negotiate with countries different cultures,but it was a rewarding experience.""It's our mission to always be half a step ahead and provide
the latest information to companies."

crucial for us to keep the close cooperation with JBIC IG and otherrelated parties for the success of the fund.

August 2019 │ JBIC Today

11

JBIC Today August 2019【Published by】
Press and External Affairs Division, Corporate Planning Department,
Corporate Planning Group,Japan Bank for International Cooperation
4-1,Otemachi,1-chome Chiyoda-ku,Tokyo 100-8144,Japan
Tel.+81-3-5218-3100 URL: https://www.jbic.go.jp/en/
Cover photo : ©Product/VGL/Geoscience/Planetobserver Agency/Artbank
Some of the photos shown here are used under license from Shutterstock.
*No part of this magazine may be reproduced without the written permission of JBIC.