By Christine Muchira/Release
The Government of Japan and the African Development Bank (AfDB) have signed a Letter of Intent to launch the Japan-Africa Energy Initiative (JAEI) to provide significant support to the New Deal on Energy for Africa.
The deal is aimed to achieve universal access to energy by 2025, using available energy sources and the most advanced technologies.
The agreement was signed on the sidelines of the recently concluded African Union Summit at the AU headquarters in Addis Ababa.
Following discussions initiated by African leaders during the Sixth Tokyo International Conference on African Development (TICAD-VI) held in Nairobi in 2016 and a visit of the Bank’s President, Dr. Akinwumi Adesina to Japan, the government confirmed its commitment to support the development of the Japan-Africa Energy Initiative.
The Initiative will significantly contribute towards Africa’s efforts to achieve universal access to energy and to transform its energy systems through a balanced and pragmatic least-cost energy mix that encompasses renewable and conventional sources.
Under this Initiative, the Bank will take the lead in project development in close consultation with Regional Member Countries.
Japan stands ready to provide up to US$ 6 billion in both concessional and non-concessional finance for a variety of energy operations that will support the provision of electricity for homes, schools, hospitals, agriculture, industries and clean cooking.
The Initiative will support the full range of activities associated with public and private sector energy projects preparation, construction and operations, through a mix of financing and technical assistance.
Speaking at the signing ceremony, Adesina, said: “I would like to thank the Government of Japan for their longstanding support to the AfDB, and to the African continent. I welcome Japan’s support for the New Deal on Energy for Africa through this Initiative, which is another milestone in the Bank’s long-standing collaboration with Japan and a strong endorsement of the Bank’s first High 5 to Light Up and Power Africa.”
Japan’s Ambassador to Ethiopia, Shinichi Saida, conveyed the message of Taro Aso, Deputy Prime Minister and Minister of Finance of Japan: “We strongly hope that, through this Initiative, Japan can contribute to accelerating the provision of electricity in Africa, including through its best available low-emitting clean coal technologies, thus leading to inclusive and sustainable growth in Africa.”
The Bank and the Government of Japan will work on the implementation arrangements over the coming weeks to effectively support projects as early as the end of 2017.