February 18, 2021
On February 16, , the Japan International Cooperation Agency (JICA) signed loan agreements with the African Development Fund (ADF) in Abidjan, to provide Japanese ODA loans of up to a total of 73.601 billion yen for the African Development Fund Fifteenth Replenishment (ADF-15).
The objective of this loan is to allow the ADF to secure the necessary resources to carry out its projects in recipient countries during the ADF-15 period (from June 30, 2020 to December 31, 2022), 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. The AfDB will continue to focus on its development prioritiesknown as the High 5s under the AfDB’s Strategy for 2013–2022: 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-15 will be used for activities with a focus on the High 5s.
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 a concessional loan within their subscription to the ADF as a source of funds for activities. 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.
* The Enhanced Private Sector Assistance (EPSA) Initiative is multi-component framework to support implementation of the African Development Bank (AfDB) Strategy for Private Sector Development. JICA is responsible for co-financing facility under EPSA, (1) Accelerated Co-financing Facility for Africa (ACFA), (2) Non-Sovereign Loans (NSL), (3) Effective Private Sector Investment Finance (PSIF).
1. Terms and Amounts of Loans
|Annual interest rate (%)||Repayment
|Loan for the African Development Fund Fifteenth Replenishment||73,601||0.11||-||40||10||-|
2. Executing Agency
African Development Fund
Address: Avenue Joseph Anoma 01 BP 1387 Abidjan 01 Côte d'Ivoire
3. Planned Implementation Schedule
(1) Completion of project: December 2022 – Loan disbursement to be completed in the ADF fifteenth replenishment period (through December 31, 2022).