2026.06.08
On June 6, Japan International Cooperation Agency (JICA) participated in a ceremony regarding the launch of the Japan-EBRD Initiative for Development Acceleration and Inclusion Special Fund (JIDAI Special Fund) and signed a Letter of Intent for the Special Fund with the European Bank for Reconstruction and Development (EBRD). The ceremony took place during the EBRD’s 35th Annual Meeting and Business Forum, which was held in Riga, the capital of the Republic of Latvia.
Developing economies in the EBRD’s countries of operation (in the Middle East, Europe, East and Central Asia) face diverse development challenges including economic diversification, energy security, infrastructure development, financing for small and medium-sized enterprises (SMEs) and women entrepreneurs, and improvement of agricultural productivity. Particularly, since the early 2020s, progress in addressing these challenges has been hindered due to the contraction of economic activity caused by the COVID-19 pandemic, soaring energy prices, and the impact of conflicts that have erupted and are becoming protracted in Ukraine and the Middle East.
Many developing countries in these regions were formerly part of socialist economic systems and continue to undergo a structural transition toward market-oriented economies. In this effort, reflecting on past reliance on foreign-currency-denominated external borrowing as a primary source of economic growth, there is growing demand for development financing in local currencies.
The project is to invest in the Japan-EBRD Initiative for Development Acceleration and Inclusion Special Fund (JIDAI Special Fund), a special fund managed by the EBRD. The EBRD has many years of experience in providing loans and investments to the private sector in its countries of operation, and Japan has been the second-largest shareholder of the EBRD. JICA’s contributions to the JIDAI Special Fund will be deployed alongside EBRD financing and will co-finance EBRD-originated predominantly local currency transactions. JICA’s financing for projects through the JIDAI Special Fund is capped at up to one billion U.S. dollars at the inception. JICA’s installment of funds into the Special Fund will be made through its Private Sector Investment and Financing scheme. From JICA’s perspective, this initiative will help narrow the funding gap for the achievement of global Sustainable Development Goals (SDGs), while supporting sustainable socio-economic development across the target regions.
The ceremony was attended, among others, by Vice President and CFO Burkhard Kübel-Sorger of the EBRD, Vice Minister of Finance for International Affairs of Japan Mimura Atsushi, and Senior Vice President Hara Shohei of JICA.
Moving forward, JICA will continue to contribute to the socio-economic development of emerging economies in line with the SDGs, in collaboration with partner countries and international organizations.
Signing Ceremony (From left to right: JICA Senior Vice President Hara Shohei, Vice Minister of Finance for International Affairs Mimura Atsushi, and EBRD Vice President and CFO Burkhard Kübel-Sorger)
1. Investee
Japan-EBRD Initiative for Development Acceleration and Inclusion Special Fund (“JIDAI” Special Fund)
2. Country (Target Region)
Eligible countries of the EBRD’s countries of operation including the Middle East, Europe, East and Central Asia
3. Investment Amount
Up to USD1 billion
4. Project Name
Private Sector Promotion Fund
5. Project Objective
By enabling JICA to participate in the dedicated special fund managed by the EBRD, the Project will co-finance EBRD-originated predominantly local currency transactions that may otherwise lack sufficient funding. By doing so, the Project is expected to contribute to sustainable socio-economic development in the Target Region.
6. Project Overview
Through contributions to a special fund established by the EBRD, this initiative will provide necessary financing for private projects implemented in the EBRD’s countries of operation (in the Middle East, Europe, East and Central Asia).
7. Contribution to the SDGs
Goal 17 (Partnerships for the Goals)
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