ADB/Japan: Private Sector Assistance to Africa

24/01/2006
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ADB/Japan: Private Sector Assistance to Africa

Tunis, 24 January 2006 – Mr. Donald Kaberuka, President of the African Development Bank (ADB) and Mr. Kaname Nakano, Director General, Development Assistance Department IV, of the Japan Bank for International Cooperation (JBIC), signed today the "Guidelines for Implementation" of the Accelerated Co-financing Facility for Africa (ACFA).  President Kaberuka also signed with Mr. Yoneyama, the Executive Director for Japan at the ADB, exchange of letters for the Fund for African Private Sector Assistance (FAPA).

These instruments are an integral part of the Enhanced Private Sector Assistance (EPSA) initiative, which entails the following components: (i) joint co-financing of sovereign guaranteed projects supporting private sector development (ACFA); (ii) a loan to the Bank for non-sovereign guaranteed operations and (iii) a grant component (FAPA) that would be used to support either self-standing technical assistance programs, or sovereign and non-sovereign operations. Japan has earmarked a US $ 1 billion for the loan components over a 5 year period and has made an initial commitment of US$ 20 million for the Technical Assistance component.

This integrated approach provides strong support to the Private Sector Development Strategy that mainstreams private sector development activities into all aspects of the ADB operational activities.

In connection with ACFA for Sovereign Guaranteed Lending, Japan would jointly co-finance government-sponsored programs in loan-eligible countries that would cover a range of activities that promote the development of the private sector in its broadest sense.

FAPA resources would be used to provide untied grants for studies, technical assistance, and capacity building to governments, regional economic communities and similar inter-governmental organizations, business associations, market regulatory institutions, business development service providers, business training and research institutions and public/private enterprises.  The resources would also be used to promote innovative programs that specifically support small- and micro-scale enterprises, including the provision of seed money for start-ups, business incubators etc.