The government of Japan and the African Development Bank on Thursday signed a Memorandum of Understanding launching the sixth phase of the Enhanced Private Sector Assistance (EPSA6) agreement, which provides a framework for critical resource mobilization and development partnership for African countries.
Under EPSA6, the Bank and JICA will work together to support regional member countries for the period 2026-2028, with a financial package of up to $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 $12 billion of support to Africa from the African Development Bank and JICA. The $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 $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.
