Japan

Background

Japan joined the ADF in June 1973 and the ADB in December 1982. Japan is the second largest contributor to ADF in cumulative terms after the United States and the 3rd largest shareholder in the ADB after Nigeria and the United States.

Japan’s collaboration with the Bank Group is articulated around 3 main pillars: ADF replenishment, bilateral trust fund Japan Policy and Human Resources Development Grant (PHRDG) and the Joint Bank-Japan Enhanced Private Sector Assistance (EPSA) initiative.

The first Cooperation Agreement was signed in 1994 between the Ministry of Finance of Japan and the Bank establishing the PHRDG (100% untied) supporting ADF countries, with a focus on HIPC eligible countries in the areas of human resource development and technical assistance to the Bank Group’s operations.

EPSA was launched by Japan with the Bank in 2005 with the earmarked budget of US$1 billion for five years.

ADB-Japan Cooperation

• Japan is providing grant financing to the Bank through the Japan Policy and Human Resources Development Grant (PHRDG) (100% untied). PHRDG supported the PRSP process in several countries such as Cameroon, Congo Brazzaville and Central African Republic among ohters. It will now focus on Environment and Deforestation and the Bank’s analytical work through Regional Integration Strategy Papers (RISPs) and Flagship / Country Reports. In 2009, PHRDG has approved five proposals totaling US$1.9 million.

• The Enhanced Private Sector Assistance for Africa (EPSA) comprises three key components. The Non-Sovereign Loan component (NSL) provides concessional financing to the Bank’s private sector operations, the Accelerated Co-financing Facility for Africa (ACFA) provides joint financing on concessional terms for AfDB-led public investment projects.  The Fund for African Private Sector Assistance (FAPA) provides grants for technical assistance and capacity building. As of March 2010, commitment for non-sovereign loan stands at US$400 million, US$190 million for ACFA and US$26 million for FAPA. The Bank contributed UA 7 million to FAPA from its net income. In 2009, Japan has replenished FAPA by additional US$10 million and US$ 2 million in 2010. FAPA is becoming a multi-donor Fund with the participation of Austria.

• Since 2006, Japan International Cooperation Agency (JICA) is seconding two JICA staff to the Infrastructure Consortium for Africa (ICA) Secretariat and to Private Sector Department (OPSM) as EPSA Coordinator.  

Formal agreements and financial contributions

• Cooperation Agreement signed in 1994 between the Ministry of Finance of Japan and the African Development Bank establishing the Policy and Human Resources Development Grant (PHRDG).

• The Enhanced Private Sector Assistance for Africa (EPSA) was launched by Japan with the Bank by the Japanese Government at the Gleneagles Summit in 2005 with the earmarked budget of US$1 billion for five years. In February 2007 a first Loan of JPY 11.5 billion Yen (Approx US$100 million) was granted to the Bank.  In September 2008, an additional credit line of JPY 32.1 billion, equivalent to USD 300 million was granted to the AfDB through EPSA non-sovereign component. The second EPSA loan brought Japan’s total financial support through EPSA Initiative to about US$ 590 million, more than half of the US$1 billion pledged for EPSA by the Japanese Government.

• AfDB signed an MOU with JBIC in May 2009. The two institutions will collabborate in natural resources development, renewable energy, infrastructure, private sector development, trade facilitation and liquidity support for private sector in Africa in mitigating the impact of the global financial crisis. JBIC and AfDB will also jointly identify potential co-financing projects in the natural resources development, where Japanese companies would be interested in investing. 

• Under the MOU signed with JICA in October 2008, collaboration is ongoing in regional infrastructure development, agriculture (NERICA), private sector development, environment and climate change, support for post-conflict fragile states, water and sanitation and Africa-Asia knowledge sharing. The Bank and JICA are organizing a series of knowledge sharing seminars; the first one on Climate Change was conducted in November 2009. Other topics will include knowledge sharing on regional integration and infrastructure development.

• An MOU between the University of Tsukuba of Japan and AfDB was signed in May 2008 at the occasion of TICAD IV in Yokohama/Japan to enhance knowledge partnership on Higher Education, Science and Technology.

Focal point for the AfDB-Japan partnership and cooperation:
Veronica Giardina,
Senior Cooperation Officer, Partnerships and Cooperation Unit (ORRU)
Tel: (216) 71 10 2519