The support will enable the country to procure fertilizer for the first phase of the season, which begins in May.

The country’s needs for the entire season are estimated at 145,000 tons.

Burundi’s Minister of Finance, Budget and Economic Planning, Mr. Audace Niyonzima requested this support on behalf of President Évariste Nadyishimiye during a meeting with the African Development Bank head in Abidjan on 7 April 2023.

Bank Group President Dr. Akinwumi Adesina said the Bank will use two existing projects from its current portfolio in Burundi to help meet the immediate needs of the first phase. The African Fertilizer Development Financing Mechanism, a special fund managed by the African Development Bank, also represents an opportunity that will be explored for subsequent phases, Adesina said.

The Bank will also support Burundi’s efforts to explore fertilizer procurement opportunities with other international agencies such as the World Food Programme.

Adesina encouraged the Burundian government to pursue reforms in the fertilizer sector. He suggested the establishment of an electronic wallet (e-wallet) for greater transparency in the process of distributing fertilizer to beneficiaries.

The meeting focused on concrete concerns and was a continuation of discussions between Burundian President Evariste Ndayishimiye and Dr. Adesina at the last Dakar 2 summit on food sovereignty and resilience in January 2023.

President Adesina reaffirmed the Bank’s commitment to support the government in its efforts to mobilize resources for Burundi’s Food and Agriculture Delivery Compact —concluded at the Dakar 2 Summit—which amounts to $200 million over five years. Discussions to fund the compact are underway with other key partners, including the Netherlands, the World Bank and the International Fund for Agricultural Development.

To this end, the Bank has mobilised about $1.3 million to finance technical studies for the establishment of agro-processing zones and irrigated areas in Karusi and Cibitoke.

The Burundian minister also requested participation in the Bank’s Affirmative Finance Action for Women in Africa or AFAWA initiative, for youth and women in his country.

In response to this request, the Bank Group has committed to strengthening the liquidity of Burundi’s Youth Investment Bank (YIB) and its Women’s Development and Investment Bank (WDIB) to the tune of about $5.3 million. Adesina explained that the Bank is moving towards the establishment of youth investment banks across the continent.

During the meeting the parties also discussed regional integration. Adesina said the Bank plans to invest about $100 million in the construction of the Uvinza-Musongati-Gitega section of the Tanzania-Burundi-Democratic Republic of Congo railway, between Tanzania and Burundi. The project will be presented to the Board of Directors in September 2023.

Adesina assured the Burundian government of the Bank’s support to other partners to mobilize the remaining funds for the construction of the Tanzania-Burundi railway section which requires $1.4 billion of which about $645.76 million is being mobilized.

Niyonzima, who is also the Bank Group Governor for Burundi, was accompanied by Sanctus Niragira, Minister of Environment, Agriculture and Livestock.

The visit to the headquarters of the pan-African development institution highlights the Bank’s ongoing relationship with its member countries and its role as the premier multilateral development finance institution in Africa. Included among the senior Bank team who met the delegation were Vice President for Agriculture, Human and Social Development Beth Dunford; Martin Fregene, Director of Agriculture and Agribusiness; Abdul Camara, Deputy Director General for East Africa and Pascal Yembeline, Country Manager for Burundi.

The Bank’s active portfolio in Burundi comprises 19 operations with commitments of $372 million, mainly concentrated in energy (45%), transport (34%), agriculture (12%) and social (8%) sectors.

The post Burundi to receive support from the African Development Bank in key development sectors appeared first on Kaab TV.

The loan agreement, to the tune of JPY 44.1 million or $350 million, carries an interest rate of 0.11% and a repayment period of 30 years, with a grace period of 10 years. The loan will contribute significantly to funding the Bank’s private sector operations through credit lines.

The signing took place at the Bank Group’s headquarters on Friday 17 February, between its Senior Vice President, Bajabulile Swazi Tshabalala, and Japanese Ambassador to Côte d’Ivoire, Katsuya Ikkatai.

The agreement comes under the joint initiative known as the Enhanced Private Sector Assistance Initiative for Africa (EPSA). This provides financing for the Bank’s private sector operations through a line of credit from the Japan International Cooperation Agency (JICA). The loans are provided on concessional terms.

“This new arrangement which takes our collaboration forward, will build on the existing strong partnership we have had over the years and fits in firmly with the call and vision of our President Dr Akinwunmi Adesina to further strengthen our collaboration with Japan,” said Tshabalala following the signing.

Ambassador Ikkatai noted that the Tunis Declaration, adopted at the Eighth Tokyo International Conference on African Development, or TICAD 8, last August, emphasizes that private investment is essential for Africa’s economic growth and inclusive and sustainable development. “Moreover, at TICAD 8, our Prime Minister Kishida announced $30 billion in public and private investment from Japan for Africa over the next three years. And this support signed today reflects a strong joint action of the Government of Japan and the African Development Bank which embodies exactly this policy of Japan,” he added.

To date, the Bank and the government of Japan have signed seven non-sovereign loans totalling $1.5 billion. The loans have contributed to support 51 projects, mainly credit lines and equity to regional development finance institutions, private equity funds and project finance for infrastructure public-private partnerships.

The EPSA loans for non-sovereign operations help finance the Bank’s private sector operations through credit lines (NSLs) from JICA to the Bank. In principle, although pooled with the other financial resources of the Bank and subject to normal Bank processes (including eligibility and pricing), the resources are attributed to specific projects “endorsed” by the Japanese Government.

The government of Japan is one of the Bank’s biggest contributors, participating in the sixteenth replenishment of the African Development’s concessional window, the African Development Fund, in December last year. Japan also contributed to the African Development Bank’s General Capital Increase (GCI-7) in 2019.

During TICAD8 held in Tunis in August 2022, the heads of the Bank and JICA announced the fifth phase of EPSA, from 2023-2025. It has a joint target of $4 billion, which is $500 million more than EPSA 4. An additional up to $1 billion will be provided by JICA under a new special window to promote debt transparency and sustainability reforms in Africa.

The post African Development Bank Group and Japan sign exchange of notes for $350 million private sector assistance loan to finance Bank’s private sector operations appeared first on Kaab TV.