The African Development Bank (AfDB) has received a loan of 30.69 billion Japanese Yen ($307 million) from the Japan International Cooperation Agency (JICA); this is the fifth loan to the AfDB under the Enhanced Private Sector Assistance (EPSA) for Africa Initiative, which supports job creation and entrepreneurship in Africa.

With the signatures of the Head of the Asian External Representation Office (ASRO) of the AfDB, Masayuki Tamagawa, and the Vice‐President of JICA, Hiroshi Kato, the loan agreement was formalized at a signing ceremony.

“I am very happy to sign on the Loan Agreement today which we believe will help further the progress of private sector development and also the employment situation among youth in Africa. Since the Asian Office of the AfDB has been in the frontline to promote private sector development of African, JICA is grateful to continuously cooperate with the AfDB to promote this effort in Japan,” Mr Kato said.

This fifth Private Sector Assistance Loan is particularly significant because it is the first loan to be facilitated after Japanese Prime Minister Abe’s announcement in January to double the support to EPSA to $2 billion.

At the receiving end, Masayuki Tamagawa, Head of the Asian External Representation Office (ASRO) of the Bank expressed his satisfaction with the deal and the commitment of the AfDB towards Africa.

“It is my great pleasure to sign on this Loan Agreement in Tokyo, Japan, on behalf of the Bank, which is our first occasion since the opening of ASRO in 2012. JICA is the Bank’s natural partner and we are and will be working very closely together to promote and enhance private sector development to improve the economic situation in Africa,” he said.

The EPSA initiative continues to help boost AfDB’s ability to provide essential economic infrastructure and direct investment in select African financial institutions and enterprises.