Manar Elbaz

DUBAI: Nobumitsu Hayashi, Governor of Japan Bank for International Cooperation (JIBC), highlighted on Thursday the bank’s efforts to support Japanese companies abroad. 

“Our mission is to support Japanese companies practically overseas, as it is getting difficult for them to adapt to energy transformation and supply chain disruption,” the governor said at a panel titled ‘Blended Finance’s Broken Promise and How to Fix It’ at the World Economic Forum. 

“We have to be innovative in terms of adopting technology and collaborating with our counterparts in other countries,” he added. 

The governor shared that the challenges the bank faces include creating regulatory frameworks and executing projects sustainably. 

“The enormous amount of money for financing is needed, especially in Asian countries as they grow and decarbonize,” he said. “In Asia, the reality is that they continue to use fossil fuels and coal power, so we continue to work with (Asian countries) on how they can decarbonize using more renewable energy.” 

As an example, Hayashi reflected on the bank’s collaboration with Indonesia and Vietnam. “We set up working teams with government agencies and Japanese companies so that we develop a real project.”

“We advise those governments (on how) to improve their regulatory framework, so that hopefully when the project is ready, the framework is also improved,” the governor added.

Moreover, in Asian countries, Hayashi said there is potential for thermal projects but these projects can be “very risky.” 

“You never know, until you start, when you can get enough heat or steam,” the governor shared. 

In regards to African countries, the governor mentioned that he is not as familiar with them as he is with Asian countries.

“In African countries, we see much fewer Japanese companies. We have fewer relations with governments. I would very much like to work with African developments or other agencies who know the system.” 

Alongside the governor, the panel was also shared by Odile Renaud-Basso, President of the European Bank for Reconstruction and Development; Jon Johnsen, CEO of PKA; and Leila Fourie, Group CEO of the Johannesburg Stock Exchange. It was moderated by ODI’s Chief Executive, Sara Pantuliano