Japan agrees US$668 million loan to African Development Bank fund

The African Development Bank (AfDB) on Wednesday said Japan had signed a 73.6 billion yen (US$668 million) loan agreement to help replenish the lender’s main development fund.

The contribution from government development bank the Japan International Cooperation Agency will support efforts to improve African countries’ economic resilience at a time when many are struggling with the coronavirus pandemic, the AfDB said in a statement.

It said by 2022 the loan and contributions from elsewhere are expected to fund the installation of up to 28,000 km (174,00 miles) of power distribution lines, to improve water access for 9 million people, and to generate US$1.6 billion of turnover through investment in micro, small and medium-size businesses.

Japan is the fifth-largest contributor of the 32 countries supporting the African Development Fund, which is replenished every three years and supports 37 countries on the continent.