Japan Supports AfDB in entrepreneurship, job creation and economic growth with a loan of US$ 100 million
The African Development Bank (AfDB) and the government of Japan signed on 16 December, 2013 a bilateral Exchange of Notes for a loan to the AfDB of 9.48 billion Japanese yen (about US$ 100 million). This is the fourth loan to the AfDB under the Enhanced Private Sector Assistance (EPSA) for Africa Initiative (and the first under the second phase announced at Arusha), which supports entrepreneurship, job creation and economic growth in Africa.
The Exchange of Notes was signed by AfDB President, Donald Kaberuka and Ambassador of Japan to Tunisia, Juichi Takahara. Following the signature of the Exchange of Notes, the relevant Loan Agreement between the AfDB and the Japan International Cooperation Agency (JICA) was signed by AfDB Vice President for Finance, Charles Boamah, and Chief Representative of JICA Tunis Office, Atsushi Asano.
During the signing ceremony the AfDB President said: “This Fourth Private Sector Assistance Loan is the first under the Second Phase of EPSA, is not only in line with Japan’s commitment at the G8 Gleneagles Summit in 2005 but also a concrete realization of the outcome of the TICAD V in Yokohama. I was fortunate to participate in the Tokyo International Conference on African Development (TICAD V) and had the opportunity to meet with Prime Minister Abe to discuss deepening the collaboration between Japan and Africa through trade and investment. This loan will help in accelerating private sector growth, create employment opportunities, support economic and social infrastructure development, and the investment climate. I would like to express our sincere appreciation to the Japanese government and Japanese people for their generous support and the vote of confidence it represents for our continued partnership under the EPSA Initiative.”
Juichi Takahara, ambassador of Japan to Tunisia, said that: “Sustainable development of Africa is one of our common concerns and it is imperative to develop the African private sector to accelerate economic growth and create jobs. Indeed, the main theme of the TICAD V in June 2013 was promoting the private sector in Africa. I hope that this Fourth Private Sector Assistance Loan will contribute concretely to the development of the African private sector. I also want to reiterate the commitment and willingness of Japan to continue its support and to assist any development effort in Africa. I take this opportunity to renew my gratitude and recognition to the AfDB, through its President, Dr. Kaberuka, for the fruitful cooperation with Japan.”
This fourth Private Sector Assistance Loan will help fund AfDB’s private sector (non-sovereign) operations supporting African Small and Medium Enterprises and investments critical to private sector growth and development. This includes public-private partnerships for the provision of essential economic infrastructure and direct investment by the AfDB in key African financial institutions and enterprises.