AfDB and Japan signed Exchange of Notes and Loan Agreement
Tunis, 11 September 2008 -- The African Development Bank (AfDB) and the Government of Japan signed in Tunis a bilateral Exchange of Notes for a loan to the AfDB of JPY 32.1 billion, equivalent to USD 300 million. The "Second Private Sector Assistance Loan under the Joint Initiative titled EPSA for Africa" helps finance the AfDB’s private sector operations. The loan is provided by Japan on concessional terms, The Exchange of Notes was signed by AfDB President, Donald Kaberuka and Shigeru Endo, Ambassador of Japan in Tunisia.
Immediately following the signature of the Exchange of Notes, the relevant Loan Agreement between the AfDB and the Japan Bank for International Cooperation (JBIC) was signed by Thierry de Longuemar, AfDB Vice President, Finance and Akihiko Koenuma, JBIC Chief Representative, Paris Office. Also attending were the AfDB Executive Director for Japan, Tetsuya Utamura, Vice President for Infrastructure, Private Sector & Regional Integration, The Japanese Delegation included Takeho Katsuta, First Secretary. Commenting on the signing of the Exchange of Notes, AfDB President said: "The first loan between AfDB and JBIC was signed on 20 February 2007, in the amount of JPY 11.5 billion, equivalent to USD 100 million. The resources have been fully disbursed and are being utilized by the Bank's Private Sector Department to support small and medium enterprises and microfinance loans and renewable energy projects, among others".
The exchange of notes and loan agreement is part of the Enhanced Private Sector Assistance (EPSA) Initiative, an innovative, multi-component, multi-donor framework for resource mobilization and development partnership to support implementation of the AfDB’s Strategy for Private Sector Development. Drawing on successful development experience in Asia and around the globe, EPSA was initially conceived in partnership with the Government of Japan (GOJ), which provided generous support to its launch in 2005 with a pledge of $1 billion in financial support through 2010. With the signing of the Second Private Sector Assistance Loan, Japan's fulfilled commitments under the EPSA Initiative total nearly $600 million, demonstrating Japan's strong commitment to the Bank and to Africa.