The Japan International Cooperation Agency (Jica) has signed a Y34.41-billion, or around $300-million, loan agreement with the African Development Bank (AfDB), intended to promote economic growth and reduce poverty in Africa through supporting the private sector.
The loan is part of the enhanced private sector assistance (EPSA) initiative – a component of Japan’s Official Development Assistance to Africa.
The seventh private sector assistance loan carries an interest rate of 0.35%, to be repaid in 40 years after a ten-year grace period.
AfDB acting finance VP Hassatou N’Sele thanked the government and people of Japan, as well as Jica, for their continued support, adding that the agreement marked the conclusion of the second phase of the EPSA Initiative and the beginning of the third phase, which has a joint target of over $3-billion for the next three years.
N’Sele added that, since 2007, the EPSA loans have reached a cumulative $1.5-billion. She thanked Jica, noting that its support in promoting private sector growth, quality infrastructure and alleviating poverty has helped the AfDB grow its private sector portfolio more than ten-fold.