AfDB, JICA sign US$668 million loan agreement
THE African Development Bank (AfDB) through its concessional arm, the African Development Fund and the Japan International Cooperation Agency have signed a US$668,1 million loan agreement to support the 15th replenishment of the development fund.
The concessional donor loan, which would support the 15th replenishment of the African Development Fund (ADF) was approved in December 2019 by ADF donor countries.
The AfDB said in a statement the loan agreement was signed this Tuesday by the Japan International Cooperation Agency (JICA) chief representative in Côte d’Ivoire Mr Fujino Kojiro, and the bank’s senior vice president Ms Swazi Tshabalala, in her capacity as chief financial officer.
“JICA is extending the loan – the largest to ADF-15 – on behalf of the Government of Japan,” said the bank.
Japan Ambassador to Cote d’Ivoire Mr Kuramitsu Hideaki, whose country has been the fifth-largest contributor to the ADF in cumulative terms, said the loan formed part of Japan’s commitment to promote industrial human resource development, innovation and investment, and to invest in quality infrastructure to enhance connectivity.
At the same conference, Japan also announced that it would contribute to phase four of the Enhanced Private Sector Assistance Initiative (EPSA), a joint flagship project with the bank.
Amb Hideaki was quoted expressing optimism that the loan would allow the (ADF) to execute concessional financing and grants for African countries facing emerging challenges caused by Covid-19 and contribute to their economic and social development.
Speaking at the same occasion, JICA president Mr Kitaoka Shinichi said the Covid-19 crisis has accelerated global structural changes.
He noted that Africa was still in the midst of the public health crisis, facing serious challenges from coronavirus variants and the cold storage requirements for vaccines.
“Only a united Africa can defeat this threat to humanity. We should not allow this virus to jeopardize the steady progress of freedoms, independence and democracy that African countries have made so far,” he said.
Mr Shinichi firmly believes that their latest contribution to ADF-15 would further boost co-operation with African countries and strengthen partnership with AfDB.
AfDB president Dr Akinwumi Adesina highlighted the regional financial institution’s long-standing partnership with the Government of Japan, including the Enhanced Private Sector Assistance Initiative, which was launched in 2005.
As of this month, Japan’s total contribution to the initiative amounts to US$4,6 billion.
Dr Adesina said Japan’s concessional donor loan was almost 10 percent of the total ADF-15 resources of US$7,5 billion.
“This is a continuation of the strong leadership role of Japan in providing concessional loans to the African Development Fund.
“Japan was the largest provider of concessional donor loans to the African Development Fund’s 15th replenishment, just like Japan was also under the African Development Fund’s 14th replenishment,” he said.
“Japan continues to add great value to the overall replenishment cycles of the ADF.”
Dr Adesina added that the latest loan “will greatly boost the liquidity of the ADF and allow us to ramp up much-needed support to the ADF countries…especially now at this critical time when they are struggling to cope with and recovery from the Covid-19 pandemic.”
By the end of the ADF-15 period (2020-2022), it is expected that the ADF’s projects will have changed the lives of millions of Africans.
Up to 28 000 kilometres of new or improved power distribution lines is targeted to have been installed while around nine million people would have improved access to water and sanitation and up to US$1,6 billion of turnover would have been generated from investments in micro, small and medium-size enterprises.–chronic.elc.zw
