Japan and African Development Bank Sign $421 Million Loan Deal to Support Africa's Most Vulnerable

The African Development Bank (AfDB) and Japan International Cooperation Agency (JICA) have formalized a concessional loan agreement worth 51.

67 billion Japanese yen (equivalent to $421 million) aimed at bolstering development initiatives in Africa's least developed and fragile nations. This loan marks another significant contribution from Japan, a leading donor to the African Development Fund (ADF), having supported several previous replenishments of the Fund.

The agreement, pledged during the 16th replenishment of the ADF in December 2022, will provide critical support in areas such as climate change, infrastructure, and private sector development across Africa. The deal was signed on October 15, 2024, with Deputy Vice Minister Daiho Fujii of Japan's Finance Ministry expressing hope that this assistance, alongside grants, would help African countries overcome key challenges such as environmental fragility and economic instability.

AfDB President Dr. Akinwumi Adesina acknowledged Japan's vital role, noting that "we wouldn't have had a successful ADF-16 replenishment without Japan's continued support for concessional donor lending." He emphasized the real-world impact of ADF projects, which, in 2024 alone, improved access to electricity, water, transportation, and health services for millions across Africa.

JICA Senior Vice President Katsura Miyazaki underscored the urgency of these efforts, citing the ongoing crises in African nations, including rising food and energy prices. The ADF has been a critical tool for addressing these challenges over its 50-year history, delivering vital financing and transformative solutions to low-income African countries.