February 8, 2018
On February 7, the Japan International Cooperation Agency (JICA) signed a loan agreement with the African Development Fund (ADF) in Abidjan designed to provide an ODA loan of up to 73.601 billion yen as part of Japan’s contribution to the African Development Fund Fourteenth Replenishment (ADF-14). This is the first Japanese ODA loan provided to the ADF.
The objectives of this loan are to allow the ADF to secure necessary resources to carry out its projects in recipient countries during the ADF-14 period (January 1, 2017, to December 31, 2019), and to contribute to economic growth and poverty alleviation in Africa’s least developed countries.
The ADF is part of the African Development Bank (AfDB) Group and provides support primarily to least developed countries and poor countries in the form of very long-term, low-interest financing. In contrast, the AfDB, which is the other arm of the AfDB Group, provides financing to middle-income countries in Africa. Until 2022, the AfDB is focusing on its development priorities known as the High 5s: Light up and Power Africa, Feed Africa, Industrialize Africa, Integrate Africa and Improve the Quality of Life for the People of Africa. The funds extended to ADF-14 will be used for activities with a focus on the High 5s.
From its inception in 1972, the ADF has conventionally received subscriptions in the form of grants from donor countries, including Japan, as a source of funds for activities. However, given the severe financial conditions of many advanced countries, during the negotiation of its fourteenth replenishment, the ADF has offered to its donor countries the possibility of including, for the first time, a concessional loan within their subscription to the ADF. The contribution of the Government of Japan to the ADF for this round of replenishment comprises grant participation and concessional lending, and this loan is for that concessional lending.
In addition, JICA has provided private sector development support through projects under the Enhanced Private Sector Assistance (EPSA) for Africa Initiative,* which the Government of Japan and the AfDB launched as a strategy for support in Africa in July 2005. It is JICA’s policy to maintain its relationship with the AfDB Group as an important development partner, contributing to economic growth and poverty alleviation in Africa.
* An assistance initiative to promote private sector development in Africa that was launched by the Government of Japan the AfDB during the Gleneagles G8 Summit in 2005.
1. Terms and Amount of Loan
|Project title||Amount (million yen)||Annual interest rate (%)||Repayment
|Loan for the African Development Fund Fourteenth||73,601||0.35||N/A||20||10||N/A|
2. Executing Agency
African Development Fund
Address: External Relations and Communication Department (PCER)/Media Section, 01 BP 1387 Abidjan 01 Côte d’Ivoire
3. Planned Implementation Schedule
Loan disbursement to be completed in the ADF 14th replenishment period (through December 31, 2019).