AFDB, Japan Sign $350m Private Sector Assistance Loan

The African Development Bank (AfDB) and Japan have signed an exchange of notes for an eighth private sector assistance loan to finance the Bank’s private sector operations.

The loan agreement, to the tune of JPY 44.1 billion or $350 million, carries an interest rate of 0.11 per cent and a repayment period of 30 years, with a grace period of 10 years. The loan will contribute significantly to funding the Bank’s private sector operations through credit lines.

The bank, on its website revealed that the signing took place at the Bank Group’s headquarters last week Friday, between its Senior Vice President, Bajabulile Swazi Tshabalala, and Japanese Ambassador to Côte d’Ivoire, Katsuya Ikkatai.

“The agreement comes under the joint initiative known as the Enhanced Private Sector Assistance Initiative for Africa (EPSA).

“This provides financing for the Bank’s private sector operations through a line of credit from the Japan International Cooperation Agency (JICA). The loans are provided on concessional terms,” the statement reads.

Tshabalala was quoted as saying that “This new arrangement which takes our collaboration forward, will build on the existing strong partnership we have had over the years and fits in firmly with the call and vision of our President Dr Akinwunmi Adesina to further strengthen our collaboration with Japan.”

Similarly, Ikkatai noted that the Tunis Declaration, adopted at the Eighth Tokyo International Conference on African Development, or TICAD 8, last August, emphasizes that private investment is essential for Africa’s economic growth and inclusive and sustainable development.

“Moreover, at TICAD 8, our Prime Minister Kishida announced $30 billion in public and private investment from Japan for Africa over the next three years. And this support signed today reflects a strong joint action of the Government of Japan and the African Development Bank which embodies exactly this policy of Japan,” he added.