Africa-Press – Eritrea. Japan and the African Development Bank (AfDB) have reinforced their nearly two-decade partnership with a new USD 5.5 billion financing deal designed to stimulate private sector growth across Africa.
On Thursday, the Japan International Cooperation Agency (JICA) and the AfDB formalized the launch of the sixth phase of the Enhanced Private Sector Assistance initiative (EPSA6) with a Memorandum of Understanding, setting a target of up to USD 5.5 billion in joint financing for African development projects.
The agreement was signed during the Ninth Tokyo International Conference on African Development (TICAD9), with Japan’s Finance Minister, Katsunobu Kato, present to witness the ceremony.
EPSA6 will provide concessional financing from JICA to the AfDB, supporting private sector initiatives across African member countries. Running from 2026 to 2028, this phase increases the funding target by half a billion dollars compared to EPSA5, its predecessor.
First introduced in 2005, EPSA is one of the AfDB’s most enduring bilateral partnerships and a vital mechanism for advancing the Bank’s strategy for private sector development. Its focus areas include power, connectivity, health, agriculture, and nutrition, which align with the Bank’s Strategy for Private Sector Development.
To date, the initiative has facilitated USD 12 billion in joint financing, backing significant infrastructure and development projects across Africa. Notable projects include Uganda’s Bujagali Hydropower Plant, the East Africa Submarine Cable System, Nigeria’s Lekki Toll Road, Rwanda’s Kigali Bulk Water Supply System, and RASCOM, the continent’s first pan-African communications satellite.
During the TICAD9 signing, Dr. Tanaka highlighted that the new USD 5.5 billion target is over five times the amount initially set when EPSA was launched 20 years ago. He also announced that “resilience” would be introduced as a new priority under EPSA6, with a focus on helping African economies withstand climate change and other external shocks.
Tanaka also acknowledged the contribution of outgoing AfDB President, Dr. Akinwumi Adesina, whose leadership has driven much of EPSA’s growth. “Thanks to his strong ownership and support, EPSA5 is set to nearly reach its USD 5 billion target by the end of this year,” he noted.
EPSA5, launched at TICAD8 in 2022, set a USD 5 billion financing commitment for 2023–2025. According to AfDB Vice President Kevin Kariuki, the initiative has already mobilized USD 4 billion, with an additional USD 1.6 billion in projects at advanced stages of financing, expected to be finalized by the end of 2025.
Kariuki praised Japan’s ongoing support, calling EPSA a cornerstone of the AfDB’s collaboration with development partners. “The Government of Japan is one of the strongest shareholders of the African Development Bank and a major contributor to the African Development Fund,” he said. “EPSA is the largest and longest-running bilateral partnership we have, and it has been instrumental in strengthening Africa’s private sector.”
Minister Kato emphasized that the renewed focus on resilience would be particularly beneficial for African nations facing high debt burdens while also attracting more private investment. “Africa has immense potential for market expansion,” he told the delegates.
With EPSA6, Japan and the AfDB are not only increasing their financial commitment but also expanding the scope of their cooperation. This new phase underscores the crucial role of private sector development in driving growth, resilience, and long-term prosperity across the African continent.
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