On April 25, Japan International Cooperation Agency (JICA) and The African Development Bank Group (AfDB) signed a Yen Loan Agreement (L/A) of up to 44.1 billion yen for “Private Sector Support Loan (VIII) under the Joint Initiative for Private Sector Development in Africa”. The Loan Agreement (L/A) was signed with the African Development Bank Group (AfDB) for up to 44.1 billion yen for “Private Sector Support Loan (VIII) under the Joint Initiative for Private Sector Development in Africa”.
The signing ceremony was held between AfDB President Akinwumi Adesina and JICA President Tanaka in the presence of Mr. Ogata, Deputy Minister of Finance of Japan, and confirmed that JICA and AfDB will further strengthen cooperation through co-financing and other means to resolve issues in Africa, which is facing multiple crises.
This project is the eighth round of yen loans to AfDB under the framework of the Enhanced Private Sector Assistance for Africa (EPSA) (Note 1), which was conceived in 2005 under the partnership between AfDB and the Government of Japan. AfDB will use the yen loans provided by JICA to finance private companies through AfDB’s Non-Sovereign Operations (NSOs).
Through this project, we aim to contribute to private sector-led economic growth and poverty reduction within Africa, and contribute to Sustainable Development Goals (SDGs) Goals 9 (Create a foundation for industry and technological innovation) and 17 (Achieve the goals through partnership) through AfDB’s NSOs.
(Note 1) The EPSA is a joint African financial assistance program between JICA and AfDB through (i) the Accelerated Co-Financing Facility for Africa (ACFA) for governments and government agencies, (ii) the Non-sovereign Loan (NSL) for the African Development Bank’s non-sovereign operations for the private sector, and (iii) the Trust Fund for African Private Sector Assistance (FAPA) for private sector assistance. This project is a collaborative effort by both JICA and AfDB to provide financial assistance to Africa through (1) the Accelerated Co-Financing Facility for Africa (ACFA), (2) the Non-Sovereign Loan (NSL) for the African Development Bank’s private sector operations, and (3) the Trust Fund for African Private Sector Assistance (FAPA). This project falls under (2) NSL.
Details of the project are as follows
Amount and terms of loan
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