AfDB, Japan sign $350 million loan facility to support Africa’s private sector

The African Development Bank (AfDB) Group and the Japan International Cooperation Agency (JICA) have signed a US$350 million loan agreement to support Africa’s private sector.

The loan comes under the Enhanced Private Sector Assistance (EPSA) initiative, which is a component of Japan’s Official Development Assistance to Africa.

JICA’s support would be crucial in the implementation of the Special Agro-processing Industrial Zones, which will be the biggest game changer of Africa’s agriculture, says AfDB president Akinwumi Adesina.

Adesina said this would transform rural economies, reduce food loses, process and add value to crops produced in rural areas and create jobs.

“Support young people to go into agriculture. Youth are Africa’s best asset, but they lack access to finance. The Bank is establishing youth entrepreneurship investment banks to provide young people with financial and technical support throughout the business cycle,” he said during the signing ceremony in Japan on Friday.

He invited JICA to collaborate with the African Development Bank Group in other critical areas, such as refining the food and agriculture delivery compacts developed by African countries during a January food summit held in Senegal to tackle the continent’s food insecurity.

“JICA’s support would be crucial in the implementation of the Special Agro-processing Industrial Zones, which will be the biggest game changer of Africa’s agriculture. It will transform rural economies, reduce food loses, process and add value to crops produced in rural areas and create jobs,” Adesina.

Also read: Zambia, Japan sign US$17 million MoU for upgrade of health centres in Copperbelt province

JICA president, Tanaka Akihiko, said the loan represented a crucial step in Japan’s efforts to work with the AfDB to support Africa as it faced the challenge of navigating multiple compounded crises including issues of debt sustainability and the impact of the war in Ukraine.

Tanaka agreed with the areas highlighted by the African Development Bank chief saying they were important to Japan’s agenda of future collaboration with Africa.

On the need to create jobs for young people, JICA president said: “It is silly not to take advantage of active youth in Africa. In Africa you have abundance of youth but in Japan we have abundance of an old population.”

Tanaka said it was important to explore ways of promoting interaction between Japan’s university students and those of Africa to foster exchange of knowledge and skills.

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