The government of Japan and the African Development Bank (AfDB) have signed a Memorandum of Understanding launching the sixth phase of the Enhanced Private Sector Assistance (EPSA6) initiative. The agreement, signed during the Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama, provides a framework for resource mobilization and development partnerships to support African countries. EPSA6 will run from 2026 to 2028, with a financial package of up to $5.5 billion—$500 million more than EPSA5—while ensuring debt sustainability for participating nations.
The EPSA initiative, established in 2005 in partnership with the Government of Japan, aims to support the African Development Bank’s Strategy for Private Sector Development, focusing on key sectors such as power, connectivity, health, agriculture, and nutrition. Over previous phases, co-financing under EPSA has mobilized $12 billion in support for Africa, funding critical infrastructure projects including the Bujagali Hydropower Plant in Uganda, the first Pan-African communication satellite RASCOM, the East Africa Submarine Cable System, Nigeria’s Lekki Toll Road, and the Kigali Bulk Water Supply in Rwanda.
EPSA6 introduces resilience as a new priority, reflecting a commitment to addressing climate change and a broad range of socio-economic shocks. Dr. Akihiko Tanaka, President of the Japan International Cooperation Agency (JICA), highlighted the growth of the program, noting that the $5.5 billion target for EPSA6 is more than five times the original EPSA1 target two decades ago. The signing was witnessed by Japan’s Finance Minister Katsunobu Kato and AfDB Vice President Kevin Kariuki, who emphasized the strong and long-standing partnership between Japan and the African Development Bank.
EPSA5, which ran from 2023 to 2025 with a $5 billion target, successfully mobilized $5.6 billion in co-financing, exceeding its goal. The non-sovereign operations component of EPSA allows JICA to provide concessional lines of credit to the AfDB to finance private sector initiatives. Minister Kato noted that EPSA6’s focus on resilience will support African countries with high debt burdens and foster private sector investment, while Kariuki praised Japan’s sustained commitment to Africa’s development and the strengthening of bilateral cooperation.
