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Japan provides $700 million loan to African Development Bank

The Japan International Cooperation Agency (JICA) has signed a loan agreement with the African Development Fund (ADF) to boost continent’s economic development. The $700.9 million loan is part of Japan’s contribution to the Fund’s fourteenth replenishment (ADF-14), but this is the first JICA credit facility to ADF, a statement released by African Development Bank (AfDB) indicates.

ADF is administered by the African Development Bank and contributes to poverty reduction and economic and social development in the least developed African countries by providing concessional funding for projects and programs, as well as technical assistance for studies and capacity-building activities. According to AfDB, the loan will provide resources to support recipient countries during the ADF-14   period for the next two years.

“The loan is to support low income African countries. Japan is a great partner of the Bank and its African Development Fund.” The AfDB president Akinwumi Adesina shared.

But then so many things remain unclear, when are we expected to pay back this loan, what are the conditions attached to it, is it going to weigh on the future generations, and why is Africa still taking loans from abroad in this era?

Of course, every country or continent needs a loan from time to time, but then there has been a serious debate on aid and loans for the African continent. In most countries, officials swindle funds, and when they have nothing left they go back to borrowing to continue taking care of projects which were paused because money which was made available for it was kept in pockets. The bank needs to get beyond just distributing these loans to countries and getting them to account for what was given to them if they need more.

Reacting under the AfDB president’s tweet, some Africans share this view.

Some have doubts;

others are worried about the future and are against these loans;

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