Africa
THE Japan International Cooperation Agency (JICA) has supported the African Development Fund (ADF) with a landmark 51.67 billion Japanese yen (421 million dollars) Concessional Donor Loan (CDL).
The President of African Development Bank (AfDB), Dr Akinwumi Adesina, said this in a statement released on the Bank’s website on Thursday.
The News Agency of Nigeria (NAN) reports that Japan is a top donor to the ADF, having contributed the largest loans to the 14th, 15th and 16th replenishments of the Fund.
The bank’s president said the loan, pledged by the Japanese government, would support the much-needed development in Africa’s least developed and fragile countries.
Adesina, who is marking his fifth visit to Japan, lauded the Japanese government for its unwavering support.
He expressed the bank’s appreciation for Japan’s broader partnership, particularly through JICA’s Enhanced Private Sector Assistance for Africa initiative.
According to him, the initiative is an innovative multi-component framework for resource mobilisation and development.
“We will not have a successful ADF-16 replenishment without Japan’s continuous 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,” he said.
Adesina reiterated the significant impact of projects completed under ADF.
“This year alone, 500,000 people have been connected to electricity; one million provided with water and sanitation; 2.5 million to improved transport; and 2.7 million to health services,” he said.
Also speaking, the Deputy Vice Minister of Japan’s Finance Ministry, Daiho Fujii, expressed optimism that Japan’s concessional donor loan would support African countries.
“The loan and grant contributions, will support African countries to address various challenges relating to climate change.
“They include lack of infrastructure, fragility, regional integration, private sector development, debt management and transparency.
“Through fruitful discussions, we reaffirmed that the ADF 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,” Fujii said.
The deputy minister said Japan and other donor countries met in Cotonou last week.
He explained that the meeting was to review the progress made against operational priorities and policy commitments at the midpoint of the ADF-16 period that runs from 2023 to 2025.
Fujii then congratulated the AfDB Group on the successful mid-term review of the 16th cycle of ADF.
In her speech, JICA Executive Senior Vice President Katsura Miyazaki described the signing ceremony as symbolic.
She said: “African countries are facing multiple crises.
“Rising energy and food prices, supply chain disruptions, and worsening debt sustainability are having a serious impact on African countries.
“The African Development Fund is critical to addressing these challenges.”
NAN reports that the ADF, the concessional lending window of AfDB was established in 1972 and became operational in 1974.
Japan joined the Fund in June 1973 and has contributed to all its replenishments, significantly increasing its contributions over time.
Over the past 50 years, the ADF has played a pivotal role in providing concessional resources and knowledge services to low-income African countries, consistently demonstrating clear value for money.
The ADF delivers transformative ideas and catalytic financing to these countries, including those in fragile situations.
As a major source of financing, the ADF’s operations are efficient and deliver a strong development impact, cementing its reputation as a trusted and strategic partner for its stakeholders.
Japan’s critical role in supporting ADF is underscored by its extension of the largest concessional donor loan contributions to both ADF-15 and ADF-16, as well as the largest bridge loan provided to ADF-14.
The Mid-Term Review (MTR) of ADF-16, successfully concluded in Cotonou in October 2024, highlighted several key achievements.(NAN)(www.nannews.ng)
LCN/YEN
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Edited by Mark Longyen
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17th October, 2024.
C.E.
Tags: ADF AfDB African Development Fund Dr Akinwumi Adesina Japan International Cooperation Agency
