JICA announces commitment to India's Aavishkaar Fund to boost investment in Africa and Asia

New Delhi, Aug 22 (IANS) The Japan International Cooperation Agency (JICA) on Friday announced that it would participate in “Global Supply Chain Support Fund SCSp” (Aavishkaar Fund) to foster impact investing in emerging Africa and Asia.

The fund is being managed by the Aavishkaar Group, a leading impact investment group that is headquartered in Mumbai.

The decision was announced in a speech by Japanese Prime Minister Shigeru Ishiba at the “Economic Partnership in Indian Ocean - Africa Forum”.

Utilising the JICA’s upcoming contribution to the Fund, the Aavishkaar Group, as a fund manager, provides credits to private corporates operating in Africa, India and other parts of emerging Asia, the agency said.

"We are honoured to invest in the Aavishkaar Fund, with which JICA has a long-standing relationship and has achieved significant impact in India," JICA’s Senior Vice President Mikio Hataeda said.

"By investing in the fund and entering a new chapter of collaboration with the Aavishkaar Group, we hope to elevate the well-established India-Japan partnership and further strengthen our commitment to impact investment in Africa and Asia," he added.

These investees are involved in a variety of international business supply chains, including those in agriculture, food processing and manufacturing.

The JICA’s commitment aims to support small and medium-sized enterprises (SMEs) whose businesses have a significant social and environmental impact.

By investing in the Aavishkaar Fund, the Japanese firm will help the Aavishkaar Group expand into the emerging markets of Africa and Asia, after India, thereby contributing to the development of the wider Indian Ocean region and the global supply chain.

"We are honoured to welcome JICA’s strategic investment in our Global Supply Chain Support Fund targeting the global south," Aavishkaar Group Founder and Chairman Vineet Chandra Rai said.

This collaboration builds upon a decade of our relationship and reflects the long-standing tradition of Indo-Japanese economic cooperation, he added.

As the only Japanese governmental organisation responsible for implementing ODA, the JICA was created by a specific law as an administrative organisation under the Japanese government to advance international development cooperation.

--IANS

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