Japan Extends $700m Loan to ADF

• Japan Extends $700m Loan to ADF

The Japan International Cooperation Agency (JICA) has signed a loan agreement with the African Development Fund (ADF) designed to provide an Official Development Assistance (ODA) loan to the tune of 73.601 billion Japanese Yen (about $700.9 million).

The loan is part of Japan’s contribution to the African Development Fund’s Fourteenth Replenishment (ADF-14). This is the first JICA loan provided to the ADF.

The loan will provide the ADF 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.

The President of the African Development Bank Group, Akinwumi Adesina, expressed the bank’s gratitude and appreciation to the government of Japan.

Signing the notes of exchange, Adesina said: “One often hears about many international pledges of development cooperation remaining unfilled. I would like to commend the full accomplishment of Japan’s commitments to Africa’s development. With its $700-million loan, which came on top of $328 million in the form of a grant, Japan has significantly contributed to the ADF commitment capacity for the period 2017-2019.”

Adesina said Japan was a longstanding development partner for Africa, with a significant portion of its aid commitments to the continent channeled 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.