In a bid to support private sector operations in Africa, the Japan Government and African Development Bank, AfDB have signed the sixth private sector assistance loan under joint initiative entitled, Enhanced Private Sector Assistance, EPSA, for Africa, worth JPY 35.88bn, about $300 million.
The agreement was signed in Abidjan, Côte d’Ivoire before AfDB President, Mr Akinwumi Adesina; AfDB Finance Vice- President, Charles Boamah, the Ambassador of Japan in Côte d’Ivoire, Hiroshi Kawamura and Hiroshi Kato of Japan International Cooperation Agency, JICA, Vice-President in charge of Africa.
Speaking at the signing ceremony, Adesina lauded the Government of Japan, JICA, and the people of Japan for the $3 billion support to the EPSA Initiative as well as the $300 million loan that was signed.
The President emphasized the importance of the loans from JICA that have reached a cumulative $1.2 billion since 2007, saying “Japan is a very strategic partner of the AfDB and a major trading partner for Africa.
Your support in promoting private sector growth, quality infrastructure and co-financing operations, has allowed the Bank to grow its private sector portfolio ten-fold.” He underscored the importance of delivering development benefits of projects supported under the partnership.
“Let me assure you that you will see the impacts on the ground, not just on the balance sheet of the Bank. As a Bank, we must and will redouble our efforts to deliver faster.
And we will disburse approved funds faster.” Ambassador Kawamura however congratulated the President on his successful inauguration and extended his appreciation for the past efforts of the Bank and wishes for further deepening of the partnership with the Bank.
The first Private Sector Assistance Loan from JICA to the AfDB was signed in 2007 for $100 million. This sixth loan brings the grand total to $1.2 billion.
The Private Sector Assistance Loans are one of three components comprising the EPSA Initiative, the other two being the Accelerated Co-financing Facility, ACFA, for public sector co-financing with JICA, and the Fund for African Private Sector Assistance, FAPA, a multi-donor thematic trust fund administered by the Bank.