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AfDB and Japan sign US$668.1mn loan agreement

The loan formed part of Japan’s commitment to promote industrial human resource development. (Image source: erinbetzk/Pixabay)

The Japan International Cooperation Agency (JICA) and the African Development Fund (ADF) have signed a loan agreement of US$668.1mn to support the 15th replenishment of the African Development Fund (ADF-15)

During a virtual ceremony, African Development Bank (AfDB) president Dr Akinwumi A Adesina and Japanese Ambassador to Côte d’Ivoire Kuramitsu Hideaki signed an Exchange of Notes, while the loan agreement was signed by the JICA Chief Representative in Côte d’Ivoire, Fujino Kojiro, and Acting ADF Group senior vice-president Swazi Tshabalala, in her capacity as chief financial officer.

The concessional donor loan will support the 15th replenishment of the ADF, approved in December 2019 by ADF donor countries. JICA is extending the loan – the largest to ADF-15 – on behalf of the Government of Japan.

Ambassador Kuramitsu Hideaki, whose country has been the fifth-largest contributor to the ADF in cumulative terms, said that 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, expressed at the TICAD 7 conference in August 2019. JICA president Kitaoka Shinichi commented, “The COVID-19 crisis has accelerated global structural changes. Africa is still in the midst of this 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. I firmly believe that today’s contribution to ADF-15 will further boost our cooperation with African countries and strengthen our partnership with the African Development Bank Group.”

Mimura Atsushi, deputy director-general at ADF Deputy, International Bureau, Ministry of Finance Japan, said, “The ADF is a key source of financing for Africa’s low-income countries heavily affected by COVID-19. The Yen Loan we are providing today has a higher grant-element compared to the Yen Loan provided for the last ADF replenishment, with a lower interest rate and longer maturity. Going forward, I would like to see our partnership further developed with the African Development Bank Group.”

Dr Adesina highlighted the AfDB's long-standing partnership with the Government of Japan, including the Enhanced Private Sector Assistance Initiative, which was launched in 2005. As of February 2021, Japan’s total contribution to the initiative amounts to US$4.6bn.

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