TheCable

The Japanese government and the African Development Bank (AfDB) have announced a $5 billion financial cooperation to support countries facing debt challenges in the region.

The bank made the pledge on Sunday, at the eighth Tokyo international conference on African development (TICAD8) held in Tunisia, according to a statement on AfDB’s website.

AfDB said the support was under the fifth phase of the enhanced private sector assistance for Africa initiative (EPSA 5) from 2023 to 2025.

It said the fund consists of $4 billion under the existing window and an additional $1 billion that will be provided under a new “special window.”

AfDB also said Japan would establish the special window to support countries that are making progress in the enhancement of debt transparency and sustainability, and other reforms, thereby, making steady and significant improvements in their debt situations.

Speaking at the inauguration of EPSA 5, Masato Kanda, Japan’s vice-minister of finance for international affairs, said the country was committed to supporting African countries while respecting their initiatives.

Also speaking at the event, Akihiko Tanaka, president, Japan International Cooperation Agency (JICA), said enhancing resilience and promoting human security were critical components of Japan’s support for Africa.

“EPSA is an essential element of our partnership with the African Development Bank to tackle social and economic challenges facing the continent. JICA commits to work with EPSA to create a bright and prosperous future,” the statement quoted Tanaka as saying.

According to the statement, on the importance of food security, Japan and the AfDB will add agriculture and nutrition as a priority area under EPSA 5.

It added that the EPSA 5 would also cover electricity, connectivity, health, as priority areas in order to address key challenges in Africa.

“Japan and the bank would further join forces to support countries that address enormous challenges, including food security, climate change, health, digitisation, and debt issues,” the statement added.

Speaking on the initiative, Akinwumi Adesina, AfDB’s president, said it was the kind of cooperation Africa and the world needed.

“Escalating climate change impacts, the COVID-19 pandemic, and the war in Ukraine mean that we must do even more than we already have done to mobilise the private sector and create job opportunities in Africa,” he said.

“The newly signed initiative will positively impact millions of lives across Africa.”