The Japan International Cooperation Agency and the African Development Bank on Thursday signed a memorandum of understanding launching the sixth phase of the Enhanced Private Sector Assistance agreement, which provides a framework for critical resource mobilisation and development partnership for African countries.
Under EPSA6, the bank and JICA will work together to support regional member countries over the period 2026-2028, to achieve a joint financing target of up to $5.5 billion, half a billion more than EPSA5.
The signing ceremony by JICA President Dr. Akihiko Tanaka and AfDB Vice President for Power, Energy, Climate and Green Growth Kevin Kariuki, took place during the Ninth Tokyo International Conference on African Development (TICAD9), in Yokohama, Japan.
Katsunobu Kato, Finance Minister of Japan, witnessed the ceremony.
The EPSA initiative, created in partnership with the Japanese government and the bank in 2005, supports the implementation of the bank’s Strategy for Private Sector Development.
Its key priorities are power, connectivity, health, agriculture and nutrition.
Tanaka said co-financing under previous EPSA agreements since 2005 had resulted in $12 billion of joint support to Africa from the AfDB and JICA. The $5.5 billion 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 $ 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 Development Finance Institution. We recognise that Japan has been an early mover in supporting private sector in Africa since 2005,” Kariuku said.
Kariuku said, “I wish to applaud the continued commitment of the government of Japan and JICA 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 $5 billion financial cooperation announced at the Eighth Tokyo International Conference on African Development (TICAD8) in 2022.
EPSA5 had achieved a $4 billion joint cofinancing target “as of today,” Kariuki declared, with projects worth $1.6 billion at an advanced stage of co-financing by the end of 2025.
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.
