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AfDB and Japan to spend $3bn to boost growth in Africa

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During the sixth edition of the Tokyo International Conference for Africa’s Development (TICAD VI) recently held in Nairobi, Kenya, the African Development Bank (AfDB) and the government of Japan signed a $3 billion agreement to boost growth in private sector and reduce poverty in Africa, over three years.

The agreement which falls under the third phase of the Enhanced Private Sector Assistance for Africa (EPSA) initiative, a program that involves both parties. Japan will thus provide $1.5 billion over the next three years via the Japan International Cooperation Agency (JICA).

The Asian nation is also willing to provide up to $300 million in aid to co-finance with AfDB clean coal combustion projects. The pan-African financial institution will provide the same amount as Japan.

“AfDB and Japan agreed today to accelerate the joint EPSA initiative, which is at the center of our long-date partnership, to boost private sector-induced growth in Africa,” declared Taku Otsuka, Japan Secretary State to Finance.

“It is a significant expansion of our support to the private sector which will play a major role in the transformation of Africa’s economy,” said AfDB’s President, Akinwumi Adesina.

(Source: Ecofin Agency) 

 

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