The Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the Government of the Republic of Benin for “Development Policy Loan for Economic Governance and Private Sector Development Support Program” in Cotonou, Benin on December 19. The signing took place between Mr. Romuald Wadani, Minister of Economy and Finance of the Republic of Benin, and Mr. Yuji Moriya, Director of JICA Benin Office.
This project aims to improve the business environment in Benin by supporting reform of the tax system, promotion of primary industries including agriculture, which is the main industry, and improvement of access to electricity through promotion of renewable energy, thereby contributing to laying the foundation for Japanese companies to enter the local market.
Signing Ceremony
A summary of the business is as follows
Project Summary
Development policy loans for economic governance and private sector development assistance programs
Development Policy Loan for Economic Governance and Private Sector Development Support Program
Country
Republic of Benin
Business Objectives
To support the steady implementation of policy and institutional reforms to improve the business and investment environment, promote the agro-industrial sector, and promote renewable energy through financial support and policy dialogue, thereby increasing the private sector’s contribution to economic development and contributing to the promotion of economic stability and social development in Benin. The project aims to contribute to the promotion of economic stability and social development in Benin.
Business
A total of 25 policy actions related to private sector development will be implemented, with two main policy pillars: “Support for Economic Governance and Private Sector Development” and “Support for the Agro-Industrial Sector and Climate Change Preparedness”.
Loan amount (maximum)
7.72 billion yen
Interest Rates
1.90% (1.90%)
Redemption period
30 years (including 10 years of deferment)
Procurement Conditions
long vowel mark (usually only used in katakana)
Implementing Agency
Ministry of Economy and Finance
Contribution to the achievement of the SDGs
Goal 5 (Achieve gender equality)
Goal 7 (Energy for All and Clean)
Goal 8 (both job satisfaction and economic growth)
Goal 9 (Create a foundation for industry and technological innovation)
Goal 13 (take concrete action on climate change)
Schedule for future project implementation (tentative)
Project completion date: February 2026 (project completion upon completion of the loan)
The project is co-financed with the African Development Bank (expected loan amount: US$28 million) and will be implemented in close collaboration.
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