The African Development Bank Group (AFDB) and the Japan International Cooperation Agency (JICA) signed a US$421 million concessional donor loan (CDL), this week.
The money is an agreement towards the African Development Fund, making Japan a top donor.
The loan, was pledged by the Japanese government at the 16th general replenishment of the resources of the African Development Fund back in December 2022.
Speaking at the signing ceremony on Tuesday this week, Deputy Vice Minister Daiho Fujii, of the Finance Ministry in Japan said “through fruitful discussions, we reaffirmed that the African Development Fund has been playing a significant role in supporting low-income countries in Africa through its concessional loans and grants. We commit to working together toward a successful ADF-17 replenishment discussion next year.”
African Development Bank Group President, Dr Akinwumi Adesina, said “we wouldn’t have had a successful ADF-16 replenishment without Japan’s continued support for concessional donor lending. It is important to sign these agreements, but it is the lives we touch that matter. We deliver what we promise. We keep our word.”
The funds are expected to assist African countries to address various challenges relating to climate change, lack of infrastructure, fragility, regional integration, private sector development, and debt management and transparency.
Picture: AFDB