The African Development Bank (AfDB) has inked an agreement with the Government of Japan for a $300 million loan to support private sector operations on the continent under a joint initiative titled Enhanced Private Sector Assistance (EPSA) for Africa.
This marks the conclusion of the second phase of the EPSA initiative and beginning of the third phase which AfDB and Japan are jointly targeting $3 billion over the next three years.
“Japan is a very strategic partner of the AfDB and a major trading partner for Africa. Your support in promoting private sector growth, quality infrastructure and co-financing operations, has allowed the Bank to grow its private sector portfolio ten-fold,” said AfDB Senior Vice President Charles Boamah.
The first Private Sector Assistance Loan to the AfDB from the Japan International Cooperation Agency (JICA) was signed in 2007 for $100 million.
The Private Sector Assistance Loans are one of the three components of the EPSA Initiative the other two being the Accelerated Co-financing Facility (ACFA) for public sector co-financing with JICA and the Fund for African Private Sector Assistance (FAPA), an AfDB-administered multi-donor trust fund.
The EPSA loans have cumulatively reached $1.5 billion to date.
The agreement was signed by Boamah and the Acting Ambassador of Japan to the Republic of Côte d’Ivoire Yukuo Murata at the AfDB headquarters in Abidjan, Côte d’Ivoire, in the presence of AfDB Acting Finance Vice-President Hassatou N’Sele and Momo Morioka from the JICA Cote d’Ivoire Office.
The loan will accelerate the expansion of AfDB’s private sector portfolio through its non-sovereign window