Japan, AfDB to raise $3.5bn to spur Africa’s growth
Japan and the African Development Bank (AfDB) have pledged to jointly raise up to $3.5 billion to support the Enhanced Private Sector Assistance for Africa initiative (EPSA).
At the 7th Tokyo International Conference on African Development (TICAD 7), both Japan and the AfDB set a target of $1.75 billion each, from 2020-2022, to enhance the fourth phase of the EPSA which is meant to spur private-sector-led sustainable and inclusive growth in Africa.
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The Minister of Finance in Japan, Mr Keisuke Suzuki , said at the launch of the EPSA4 in Yokohama at the weekend that, “Building on the successful achievements so far, Japan and the bank have decided to upgrade the EPSA in both quality and quantity to meet financial needs for infrastructure development, as well as for the private sector development in Africa.”
The event was attended by government officials and a high-level delegation from the bank, as well as representations of the business community.
“We will cooperate by integrating our funds, expertise and experiences, and I wish the win-win relationship between Japan and Africa will deepen further,” Mr Suzuki said.
Infrastructure
Electricity, transport and health will be key priorities under EPSA4. Projects and programmes for the three key priorities will be formulated and implemented in line with the G20 Principles for Quality Infrastructure Investment and the G20 Shared Understanding on the Importance of UHC Financing in Developing Countries.
African countries will also be provided with support to improve and create conducive business environments to attract private investments.
“Today marks another day to celebrate the strong and impactful partnership between Japan and the African Development Bank. The African Development Bank and the Japan International Cooperation Agency (JICA) are long-term partners for promoting the development of Africa.
The EPSA helps to deliver much needed support to the private sector,” Dr Akinwumi Adesina, the President of the African Development, said during his address.
During EPSA1 (2005-2011), Japan set the target of providing $1billion in loans and $2 billion under the second phase (2012-2016). The ongoing EPSA3 (2017-2019), Japan and the African Development Bank are cooperating closely to provide the targeted joint amount of $3 billion.
As of today, the bank and the JICA, under ACFA, have co-financed 25 projects to improve key transport and electricity transmission networks. These include the construction of three intersections in Abidjan in Côte d’Ivoire and Power Sector Reform Programme in Angola.
Under EPSA 4, the JICA and the African Development Bank will provide co-financing of $3.5 billion. This is a significant increase over EPSA-3, which was executed at $3 billion – a 17 per cent increase.
“Increase is what we need to meet the needs of Africa. Increase is what we need to raise the level of our ambitions for Africa. Increase is what we need to build upon the solid foundations of co-financing over the last 13 years and deliver even greater and more impactful development results in the years ahead.
Now, let us arise with renewed vigor. Let us deliver even greater impacts for African countries through EPSA 4,” the President of the AfDB, Dr Akinwumi Adesina, said.— GNA