The African Development Bank Group and the Japan International Cooperation Agency (JICA) have formalised a pivotal agreement, with Japan committing a ¥51.67bn (approximately $421 million) concessional loan to the African Development Fund (ADF). This major boost, announced during a signing ceremony on October 15, is aimed at driving development initiatives across Africa’s least developed and fragile nations.
This loan follows Japan’s longstanding commitment as a key donor to the ADF, supporting the fund’s 14th, 15th, and 16th replenishments. The fund plays a crucial role in providing concessional resources and knowledge services to low-income African countries, delivering transformative impact through projects in infrastructure, healthcare, and energy.
Vice Minister of Finance, Daiho Fujii, expressed optimism during the signing, noting, ‘Japan’s concessional loan, along with grant contributions, will help African nations tackle significant challenges including climate change, infrastructure deficits, regional integration, and private sector development.’
The loan was pledged by Japan during the 16th general replenishment of the ADF in December 2022. The funds will be instrumental in supporting countries facing multiple crises, such as rising energy costs, food insecurity, and deteriorating debt conditions.
African Development Bank Group President, Dr. Akinwumi Adesina, praised Japan’s unwavering support for Africa’s development. ‘We wouldn’t have achieved a successful ADF-16 replenishment without Japan’s continued backing. These agreements represent more than just numbers; they represent lives changed. This year alone, projects supported by the ADF have connected 500,000 people to electricity, provided one million people with clean water, and improved transport and health services for millions more.’
JICA’s Executive Senior Vice President, Katsura Miyazaki, echoed these sentiments, emphasising that the African Development Fund is critical in helping countries address their pressing economic challenges, which have been worsened by global crises like supply chain disruptions and inflation.
Japan has been a strong partner of the ADF since joining in 1973, consistently increasing its contributions over the years. This new loan solidifies Japan’s role as one of the largest contributors to the fund, cementing its position as a crucial player in Africa’s long-term development.
With the African Development Fund nearing its 50th year, the recent mid-term review of ADF-16, concluded in October 2024, highlighted significant achievements in delivering development projects across Africa’s most vulnerable regions. The fund continues to be a major source of financing, helping African countries transition towards more sustainable and resilient economies.
Source: Africa Today
