Japan and the African Development Bank (AfDB) have reinforced their nearly two-decade collaboration with a fresh USD 5.5 billion financing package aimed at stimulating private sector growth across Africa.
the Japan International Cooperation Agency (JICA) and the AfDB signed a Memorandum of Understanding at the Ninth Tokyo International Conference on African Development (TICAD9), officially launching the sixth phase of the Enhanced Private Sector Assistance initiative (EPSA6). Japan’s Finance Minister, Katsunobu Kato, attended the signing ceremony.
Running from 2026 to 2028, EPSA6 raises the financing target by half a billion dollars compared to EPSA5, reflecting growing ambition in the partnership. For the first time, “resilience” will be introduced as a priority area focusing on strengthening African economies against climate change, debt vulnerabilities, and other external shocks.
EPSA6 will continue channeling concessional financing from JICA to AfDB, supporting projects in power, connectivity, health, agriculture, and nutrition all central to the Bank’s private sector development strategy.
Bilateral partnership
Since its launch in 2005, EPSA has become AfDB’s most enduring bilateral partnership, facilitating USD 12 billion in joint financing for transformative projects across Africa. These 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, Africa’s first pan-continental communications satellite.
Dr. Tanaka noted that the new USD 5.5 billion target is more than five times the original amount when EPSA began two decades ago. He also credited outgoing AfDB President Dr. Akinwumi Adesina for his leadership in expanding EPSA’s reach and impact.
EPSA5, launched at TICAD8 in 2022, set a USD 5 billion financing commitment for 2023–2025. According to AfDB Vice President Kevin Kariuki, nearly USD 4 billion has already been mobilized, with another USD 1.6 billion in projects at advanced financing stages expected to close by the end of 2025.
Kariuki described EPSA as a “cornerstone” of AfDB’s work with partners, emphasizing Japan’s role as both a strong shareholder of the Bank and a major contributor to the African Development Fund.
Minister Kato reaffirmed Japan’s commitment, highlighting that resilience-focused investments would help African countries manage debt challenges while also attracting more private capital. “Africa has immense potential for market expansion,” he said.
With EPSA6, Japan and the AfDB are not only raising their financial commitments but also broadening the scope of cooperation. The initiative underscores the pivotal role of private sector development in driving inclusive growth, resilience, and long-term prosperity across Africa.