The African Development Bank (AfDB) has signed a Sh71 billion ($700.9 million) loan with the Japan International Cooperation Agency (Jica) for onward lending to countries in Africa.
Through affiliate African Development Fund (ADF), Jica will lend the money as part of the Official Development Assistance (ODA), which is money given as loans or grants to poor countries by advanced economies.
“This is the first JICA loan provided to the ADF. The loan will provide the African Development Fund with resources to support recipient countries during the ADF-14 period (January 1, 2017 to December 31, 2019), and contribute to economic growth as well as poverty alleviation in Africa’s least developed countries,” said AfDB in a statement.
The president of the African Development Bank Group, Akinwumi Adesina, said the loan would boost capacity for lending in the 2017-19 period.
“With its $700 million loan, which came on top of $328 million (Sh33 billion) in the form of a grant, Japan has significantly contributed to the ADF commitment capacity for the period 2017-2019,” said Mr Adesina. He said Japan was Africa’s long-standing development partner with a significant portion of her aid commitments to the continent channelled through the African Development Bank Group.
“Japan is the second-largest contributor to the ADF in cumulative terms, and it has increased its contributions significantly over time,” he said.