TICAD9: AfDB and Japan Launch $5.5 Billion EPSA6 Initiative to Boost Africa’s Private Sector

At the Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama, Japan, the African Development Bank (AfDB) and the Japan International Cooperation Agency (JICA) formalized the sixth phase of their long-running partnership by signing a Memorandum of Understanding (MoU) to launch the Enhanced Private Sector Assistance (EPSA6) initiative.

According to the AfDB, EPSA6 will mobilize up to $5.5 billion between 2026 and 2028, a $500 million increase from the preceding EPSA5. This expansion marks a continued commitment to fostering private sector-led growth across Africa, with a renewed focus on climate resilience.

Launched in 2005 by the AfDB and the Government of Japan, EPSA has supported development in key sectors such as energy, connectivity, health, agriculture, and nutrition. The new phase introduces resilience as a strategic priority, aiming to address climate change and other economic shocks impacting African countries.

JICA President Dr. Akihiko Tanaka highlighted the long-standing impact of the partnership, noting that previous EPSA phases have already mobilized about $12 billion. He emphasized that the $5.5 billion target for EPSA6 represents more than five times the original EPSA1 commitment.

“This reflects the growing strength of our partnership and the increasing importance of our joint effort. With this focus, we are committed to address not only climate change but also a broad range of shocks,” Tanaka said.

Dr. Tanaka also praised outgoing AfDB President Dr. Akinwumi Adesina for his leadership in expanding the initiative.

AfDB Vice President Kevin Kariuki described Japan as “one of the Bank’s strongest partners,” and noted that EPSA is AfDB’s largest and longest-standing bilateral partnership with any development finance institution.

“I applaud Japan and JICA for their commitment to Africa’s development. I am confident we will consolidate the successes of this collaboration in a mutually agreeable manner,” Kariuki stated.

He also confirmed that EPSA5 (2023–2025) had achieved $4 billion in joint co-financing, with $1.6 billion in advanced-stage projects expected to be completed by the end of 2025.

Japanese Finance Minister Katsunobu Kato expressed optimism about Africa’s economic potential and the importance of resilience in the next phase.

“EPSA6’s focus on resilience will help African countries manage debt burdens while creating opportunities for private sector investment,” he said. “Africa has tremendous opportunities for significant market expansion.”

Notable EPSA-supported projects over the years include Uganda’s Bujagali Hydropower Plant, the East Africa Submarine Cable System, Nigeria’s Lekki Toll Road, and Rwanda’s Kigali Bulk Water Supply.