AfDB Gets $700m Loan from Japan to Fight Poverty in Africa
The African Development Bank (AfDB), through the African Development Fund (ADF), has received a credit facility of $700.9 million from the Japan International Cooperation Agency (JICA) to assist in contributing to economic growth as well as poverty alleviation in Africa’s least developed countries.
Both parties recently sealed the loan agreement designed to provide an Official Development Assistance (ODA) and part of Japan’s contribution to the ADF’s Fourteenth Replenishment (ADF-14).
The loan will provide the African Development Fund with resources to support recipient countries during the ADF-14 period (January 1, 2017 to December 31, 2019).
President of AfDB, Mr Akinwumi Adesina, acknowledged the landmark event and expressed the Bank’s gratitude and appreciation to the Japanese government.
Signing the Notes of Exchange, Mr Adesina said, “Thanks to Japan and its Government for keeping a promise. One often hears about many international pledges of development cooperation remaining unfilled.
“I would like to commend the full accomplishment of Japan’s commitments to Africa’s development.
“With its $700-million loan, which came on top of $328 million in the form of a grant, Japan has significantly contributed to the ADF commitment capacity for the period 2017-2019.”
Mr Adesina stated that Japan was a longstanding development partner for Africa, with a significant portion of its aid commitments to the continent channelled through the African Development Bank Group.
“Japan is the second-largest contributor to the ADF in cumulative terms, and it has increased its contributions significantly over time,” he said.
Also speaking on the occasion, Japan’s Ambassador to Côte d’Ivoire, Mr Hiroshi Kawamura, said he was glad to sign the accord to bolster Africa’s socio-economic development.
“Our contributions to the ADF-14 replenishment will allow the Government of Japan to increase its contributions to 7.3%, against 6.7% for the ADF-13,” he stated. According to Kawamura,
“We hope the loans and grants will be used effectively to improve economic and social conditions of less privileged people in Africa.
“Also, the reason of our meeting today would further contribute to accelerating the Tokyo International Conference on African Development (TICAD),” he said.
JICA Chief Representative in Côte d’Ivoire, Tsutomu Iimura, said his institution fully adheres to the African Development Bank’s High 5s. “There is no limit in the potential collaboration and synergies between the two institutions.”
Iimura expressed the hope that JICA’s projects and contributions to ADF-14 would bolster the Bank’s capacity to carry out the objectives of the High 5s in countries where support is most needed.