In order to help the AfDB support development projects in Africa, the African Development Bank (AfDB) and the Japan International Cooperation Agency (JICA) have signed a major agreement for a loan of 51.67B Japanese Yen, about 421 million in US Dollars.
Since 1973, Japan has been a key donor to the African Development Fund, which is the part of the AfDB that offers loans to African countries on favorable terms.
In the first half of this year, in June, in a bid to increase their share in these institutions, Kenya pledged to invest US $100M in the AfDB, Afreximbank, and the Trade Development Bank.
Later, in September, the AfDB invested in Dhamana Guarantee Company, a Nairobi-based organization that provides financial guarantees to support the growth of sustainable businesses.
Dr. Akinwumi Adesina, President of the African Development Bank Group, said, “We wouldn’t have had a successful ADF-16 replenishment without Japan’s continued support for concessional donor lending.”
“African countries are facing multiple crises. Rising energy and food prices, supply chain disruptions, and worsening debt sustainability are having a serious impact on African countries,” JICA Executive Senior Vice President Katsura Miyazaki.
Japan’s Deputy Vice Minister of Finance, Daiho Fujii, also emphasized their commitment to continued cooperation, saying, “We commit to working together toward a successful ADF-17 replenishment discussion next year.”
This partnership between Japan and the AfDB is expected to make provisions for the urgently needed financial support to African countries as they navigate these economic challenges.
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