The government of Japan and the African Development Bank have signed a Memorandum of Understanding launching the sixth phase of the Enhanced Private Sector Assistance agreement.
It provides a framework for critical resource mobilization and development partnership for African countries.
Under the Enhanced Private Sector Assistance Agreement Phase six, the Bank and Japan International Cooperation Agency will work together to support regional member countries for the period 2026-2028, with a financial package of up to USD 5.5 billion – half a billion more than EPSA5 – while ensuring their debt sustainability.
The brief signing ceremony by Japan International Cooperation Agency (JICA) President Dr. Akihiko Tanaka, and African Development Bank Vice President for Power, Energy, Climate and Green Growth Kevin Kariuki, took place during the Ninth Tokyo International Conference on African Development (TICAD9), ongoing in Yokohama, Japan. Mr. Katsunobu Kato, Finance Minister of Japan witnessed the ceremony.
The EPSA Initiative, created in partnership with the Government of Japan in 2005, supports the implementation of the Bank’s Strategy for Private Sector Development. Its key priorities are power, connectivity, health, agriculture and nutrition.
Dr. Tanaka said co-financing under previous EPSA agreements since 2005, had resulted in USD 12 billions of support to Africa from the African Development Bank and JICA.
The USD 5.5 billion ambitious new target for EPSA6 is more than five times the original target of EPSA1, 20 years ago, he said.
“This reflects the growing strength of our partnership and the increasing importance of our joint effort,” he added.
He also announced that resilience would be a new priority under EPSA6. “With this focus we are committed to address not only climate change but also a broad range of shocks.”
Tanaka lauded the role played by outgoing African Development Bank President, Dr. Akinwumi Adesina, for over half of EPSA’s history.
“Thanks to his strong ownership and support, we are pleased that EPSA5 is now almost reaching its target of USD 5 billion by the end of this year,” he said.
The EPSA non-sovereign operations component helps finance the Bank’s private sector operations through a line of credit from JICA to the Bank on concessional terms.
Previous EPSA agreements have helped finance critical infrastructure such as the Bujagali Hydropower Plant (Uganda), RASCOM (the first Pan-African communication satellite), the East Africa Submarine Cable System, Lekki Toll road (Nigeria), and the Kigali Bulk Water Supply in Rwanda.
“The Government of Japan is one of the strongest shareholders of the African Development Bank and contributors to the African Development Fund. In addition, EPSA is the largest and longest-standing bilateral partnership the Bank has with any of its member countries. We recognize that Japan has been an early mover in supporting the private sector in Africa since 2005,” Kariuki said.
“I wish to applaud the continued commitment of the Government of Japan towards Africa’s development, and I am confident that we will consolidate the successes of development collaborations between Japan and Africa in a mutually agreeable manner.”
EPSA 5, which ran from 2023 to 2025, involved a USD 5 billion financial cooperation announced at the Eighth Tokyo International Conference on African Development (TICAD8) in 2022.
EPSA5 had achieved a USD 4 billion joint cofinancing target “as of today,” Kariuki declared, with projects worth USD 1.6 billion at an advanced stage of co-financing by the end of 2025, leading to a total of USD 5.6 billion of co-financing by the end of December 2025, which should be 112 percent of the USD 5 billion target.
In earlier opening comments Minister Kato said EPSA 6’s focus on resilience would help African countries with a heavy debt burden as well as expand private sector investment.
“Africa has tremendous opportunities for significant market expansion,” Kato said.