AfDB and Japan sign $300 million loan agreement to support the private sector in Africa

Sep 17, 2014

The African Development Bank (AfDB) and Japan signed a $300 million (€231.7 million) concessional loan on Friday (September 12th) to support the private sector in Africa.

The African Development Bank (AfDB) and Japan signed a $300 million (€231.7 million) concessional loan on Friday (September 12th) to support the private sector in Africa.

This agreement is part of the Enhanced Private Sector Assistant (EPSA) initiative, announced by the Japanese government
at the 2005 G8 Summit in Gleneagles.

According to the AfDB, EPSA is a multi-donor, multi-component project for resource mobilisation and
a
development partnership to support the Bank's private sector development strategy.

The implementation of the initiative has three components: to fast-track the set-up of co-financing for the public sector, the Fund for African Private Sector Assistance (FAPA), and loans to the private sector.

The signing of this agreement comes further to the announcement made earlier this year by Japanese Premier Shinzo Abe, that his country would be doubling its commitment to the EPSA account from $1 billion to $2 billion over the next three years.