The African Development Bank Group (www.AfDB.org) and the Japan International Cooperation Agency (JICA) have underscored the critical need for blended and innovative finance mechanisms to back Africa’s efforts to tackle climate change. In a meeting held in Tokyo on 20 June 2024, both sides agreed that providing more productive concessional lending to African governments is only part of the solution and stressed the importance of domestic resource mobilisation and building institutional debt management capacity as well.
The talks, part of an African Development Bank delegation’s engagements, brought together top executives from both institutions to review their joint Enhanced Private Sector Assistance (EPSA) initiative (http://apo-opa.co/4clRMvf). It also provided an opportunity for the two institutions to prepare for the 9th Tokyo International Conference on African Development (TICAD9) Summit in Yokohama in August 2025.
JICA (http://apo-opa.co/4eD2m2i) is an incorporated administrative agency in charge of administering Japan’s overseas development assistance (ODA) focused on providing bilateral aid to developing countries through grants, loans and technical assistance.
The Bank Group delegation, led by Vice President for Power, Energy, Climate&Green Growth Kevin Kariuki, included Vice President for Private Sector, Infrastructure&Industrialisation, Solomon Quaynor, and Chief Economist and Vice President for Economic Governance&Knowledge Management, Kevin Urama. At the meeting were JICA executives, including Senior Vice Presidents Naoki Ando, Sachiko Imoto, Masao Yahara, Kenichi Kawamura and Shohei Hara; Director General of the Africa Department Naoki Yanase; Director General for Middle East and Europe Kei Toyama, Director General of Credit Risk Analysis and Environmental Review Department Suguru Miyazaki; Deputy Director General of the Africa Department Kumiko Uchida, and Masahiro Juraku, Director for Private Sector Investment Finance Division 2.
A key focus of the discussions was the progress towards the EPSA 5 target of mobilising $5 billion between 2023-2025, with priority investments in electricity, health, connectivity, and agriculture. They also reviewed the progress on co-financed projects including in Nigeria, Mauritania, and Morocco, recognizing the importance of innovative financing mechanisms in addressing environmental challenges.
Kariuki highlighted the Bank’s Climate Action Window (http://apo-opa.co/4cnHlr0) as a potential co-financing opportunity for JICA.
Addressing Africa’s debt management concerns, JICA Senior Vice President Naoki Ando emphasized the need for a broader range of public finance management capacity building, and more productive concessional finance for African governments. Urama highlighted the Bank’s efforts to build debt management capacity in countries like Mozambique, Zambia, and Zimbabwe, including its Public Financial Management Academy program.
The African Development Bank showcased its focus areas in private sector development: industrialisation, enterprise development for SMEs, and youth-focused entrepreneurship, including its Youth Entrepreneurship Investment Banks initiative, launched to finance youth-led African businesses. JICA expressed interest in cooperation opportunities, particularly in Nigeria and Ethiopia.
Transport corridor development was another critical area, with discussions focusing on projects like the Lobito Corridor connecting Angola, DRC, and Zambia, and the Abidjan-Lagos Highway Corridor for which the Bank Group is supporting climate risk assessments to integrate adaptation measures such as sea walls. In response to a t Bank Group presentation of its “smart corridor” concept, which leverages data and technology for efficient operations and urban planning, JICA representatives stressed that corridor development and urban development are closely linked. JICA proposed to explore further collaboration on food security and industrial development to increase economic impacts of transport corridor development.
In the area of supply chain resilience and diversification, Bank leaders proposed synergies between the Bank Group’s country and regional integration strategy papers, and the Co-Creation for Common Agenda (http://apo-opa.co/4eKNuPu) Initiative of Japan’s Ministry of Foreign Affairs.
Looking ahead to TICAD9, JICA has established 15 working teams to explore strategic topics for consideration at the Summit, a proactive approach that underscores the importance of the event to both partners, and Africa’s economic development.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Media Contact:
Olufemi Terry,
African Development Bank Group,
media@afdb.org
About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org