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AfDB Signs $700m Development Loan Agreement With Japan

The President, African Development Bank (AfDB), Dr Akinwumi Adesina, said that the Japan International Cooperation Agency (JICA) has signed a 700 million dollar loan agreement with African Development Fund (ADF).

Adesina said this in a statement made available to newsmen on Tuesday in Abuja.
He said the loan was part of Japan’s contribution to the ADF’s Fourteenth Replenishment (ADF-14). He added that this was the first JICA loan provided to the ADF.

He said that the loan would provide the ADF with resources to support recipient countries during the ADF-14 period, from Jan. 1, 2017 to Dec. 31, 2019.
Akinwumi Adesina President African Development Bank (Photo credit:AfDB)

The president said that the loan would contribute to economic growth as well as poverty alleviation in Africa’s least developed countries.
“Thanks to Japan and its Government for keeping a promise. One often hears about many international pledges of development cooperation remaining unfilled.

“I will like to commend the full accomplishment of Japan’s commitments to Africa’s development with its 700 million dollars loan, which came on top of 328 million dollars in the form of a grant.

“Japan is a longstanding development partner for Africa, with a significant portion of its aid commitments to the continent channeled through the AfDB Group.
“Japan is the second-largest contributor to the ADF in cumulative terms and it has increased its contributions significantly over time,” Adesina said.

Mr Tsutomu Iimura, the Chief Representative of JICA, said there was no limit to the potential in the collaboration and synergies between the two institutions.

“JICA’s projects and contributions to ADF-14 will bolster the Bank’s capacity to carry out its objectives in countries where support is most needed,” Iimura said.
The ADF is part of the AfDB Group that provides support primarily to least developed and poor countries in the form of very long term, low interest financing.

JICA provides private sector development support through projects under Enhanced Private Sector Assistance for Africa (EPSA), which the Government of Japan and the AfDB launched as a strategy for support in Africa in July 2005.
The new African Economic Outlook by the African Development Bank, AfDB says most African economies, especially the non-resource-rich ones, grew faster than envisaged in 2017. But, the President of the Bank, Akinwunmi Adesina, said at the 2018 Diplomatic Luncheon in Abidjan, Cote D’Ivoire that the Bank’s investments and achievements inspire confidence that prospects for growth in the years ahead are even brighter.
Overall, Africa’s economies remain resilient despite the global economic headwinds, climate and regional shocks.
Real GDP growth was estimated at 3.6 per cent in 2017, up from 2.2 per cent in 2016. However, 18 African countries grew above 5 per cent in 2017, and 37 countries above 3 per cent.
The prospects for growth in the year ahead are actually much brighter. Our own recently released African Economic Outlook projects Africa’s GDP growth to accelerate to 4.1 per cent in 2018 and 2019.
The recovery has been faster than some had envisaged, especially among the non-resource-rich economies, essentially underscoring Africa’s economic resilience.
The Bank achieved its highest annual disbursement ever in its history, at $7.67 billion.
Our investment in the energy sector in 2017 covered 31 operations in 23 countries, and totaled $1.39 billion, representing a 30 per cent increase over 2016.
The Bank launched its largest bond transaction, with a $2.5 billion 3-year global benchmark, followed by its largest ever 5-year global benchmark for $2 billion.
The Bank is mobilizing more resources for Africa. In 2017, we mobilized $9.73 billion from the capital markets for African countries, including $300 million from the Enhanced Private Sector Facility for Africa.
Last year, the Bank helped leverage $6 billion for the landmark Japan-Africa Energy Financing Facility. This will help accelerate efforts to light up and power Africa, and I am most grateful to Prime Minister Shinzo Abe for helping to make this happen.
We supported Morocco with $249.5 million to expand Ouarzazate, the largest solar power plant in the world.
In Uganda, our support of $105 million for the Bujagali project will generate 300 MW of power and cut electricity tariffs by 50 per cent from USc 14/kWh to just USc 7/kWh.
And in Burkina Faso, we supported the development of a 50MW solar project jointly with the French development agency, AFD. The project will be the largest utility scale solar power facility in West Africa.
And now, the Bank is spearheading the development of the Desert to Power initiative, to harness electricity from the sun all across the Sahel.