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The AfDB and Japan sign $300-million loan agreement to support the private sector in Africa
Abidjan, September 15, 2014 – On September 12, 2014, The African Development Bank (AfDB) and Japan signed a concessional loan for US $300 million to support the private sector in Africa. The AfDB was represented by its President, Donald Kaberuka, and Japan by its Ambassador in Côte d’Ivoire, Susumo Inove.
This agreement formed part of the Enhanced Private Sector Assistant (EPSA) initiative. EPSA is an innovative multi-donor, multi-component initiative for resource mobilisation and development partnership to support the Bank's private sector development strategy. It was designed in partnership with the Japanese Government.
At the 2008 G8 Summit in Gleneagles, the Japanese Government announced a major initiative to support the development of the African continent in the areas of infrastructure and the private sector.
Implementation of the EPSA initiative has three components: to fast-track the set-up of co-financing (for the public sector), the Fund for African Private Sector Assistance (FAPA), and loans to the private sector. In recent years, major projects have been co-financed within this framework.
The signing of this agreement comes further to the announcement made by Japanese Premier Shinzo Abe, that his country would be doubling its commitment to the EPSA account from $1 billion to $2 billion over the next three years. This was during his official visit to Abidjan in early 2014.
A separate signing ceremony of the Loan Agreement under the EPSA initiative is scheduled to place in Tokyo on Tuesday, September 16, 2014.