Japan lends $100m to African Development Bank to boost SMEs in Africa

The Japanese government has increased its assistance to private sector projects in Africa through a concessional, or ‘soft’, loan of 8,440 billion Japanese yen, or approximately $100 million, to the African Development Bank (AfDB).

The loan, entitled Third Private Sector Assistance Loan, according to the Bank, marks the culmination and fulfilment of a pledge that Japan made at the Gleneagles Summit to provide $1 billion to Africa through the AfDB.

“The new funds will help finance the launch and growth of small and medium-sized enterprises (SMEs) and other private sector initiatives in Africa,” the AfDB said in a statement October 17, 2011.

The agreement was signed by AfDB President, Mr. Donald Kaberuka, and His Excellency, Mr. Toshiyuki Taga, the Japanese Ambassador to Tunisia.

The first loan for private sector operations between Japan and the AfDB was signed in February 2007, which was an amount of JPY 11.5 billion – It was followed by a second loan of JPY 32.1 billion, signed in September 2008, the statement said.

By Ekow Quandzie