Japan, AfDB Launch $5.5 Billion EPSA6 to Boost Africa’s Resilient Growth

The Government of Japan and the African Development Bank (AfDB) have signed a landmark agreement launching the sixth phase of the Enhanced Private Sector Assistance initiative (EPSA6). The Memorandum of Understanding, signed on Thursday during the Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama, Japan, establishes a $5.5 billion financial framework for African countries between 2026 and 2028.

The signing was formalized by Dr. Akihiko Tanaka, President of the Japan International Cooperation Agency (JICA), and Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth. The ceremony was witnessed by Japan’s Finance Minister Katsunobu Kato.

EPSA6 builds on two decades of successful partnership, adding resilience as a new strategic priority, alongside longstanding areas such as power, connectivity, health, agriculture, and nutrition.

Scaling Up Development Finance

Under EPSA6, Japan and the AfDB will mobilize $5.5 billion in co-financing, an increase of $500 million over the previous phase (EPSA5). This makes EPSA6 the most ambitious package since the initiative’s creation in 2005.

“This new target is more than five times the original EPSA1 target two decades ago,” Dr. Tanaka noted. “It reflects the growing strength of our partnership and the increasing importance of our joint effort. With resilience as a priority, we are committed not only to addressing climate change but also to helping Africa withstand a broad range of shocks.”

EPSA6 emphasizes debt sustainability, an increasingly pressing issue as many African nations grapple with high debt burdens amid global financial volatility.

A Proven Track Record

Since its inception, EPSA has played a vital role in mobilizing resources for Africa’s private sector development. Under the five completed phases (EPSA1–5), the AfDB and JICA have jointly delivered $12 billion in financing for transformative projects across the continent.

Some notable achievements include:

• Bujagali Hydropower Plant (Uganda), improving renewable energy access.

• RASCOM, the first Pan-African communication satellite.

• East Africa Submarine Cable System, enhancing connectivity and digital integration.

• Lekki Toll Road (Nigeria), supporting transport and urban infrastructure.

• Kigali Bulk Water Supply (Rwanda), boosting access to clean water.

EPSA’s non-sovereign operations have also provided concessional financing lines of credit from JICA to AfDB, enabling greater support for private sector enterprises in Africa.

EPSA5’s Success Paves the Way

EPSA5, launched at TICAD8 in 2022, mobilized $5 billion for the 2023–2025 period. According to Kariuki, co-financing had already reached $4 billion by mid-2025, with a further $1.6 billion in advanced stages of approval, ensuring the program would exceed its target. By the end of December 2025, EPSA5 is projected to deliver $5.6 billion in total co-financing — 112% of its original goal.

Kariuki praised Japan’s consistency: “The Government of Japan is one of the strongest shareholders of the AfDB and a top contributor to the African Development Fund. EPSA is the largest and longest-standing bilateral partnership the Bank has with any of its member countries. Japan has been an early mover in supporting Africa’s private sector since 2005.”

He emphasized that EPSA6 will consolidate these gains and strengthen collaboration in a “mutually agreeable and forward-looking manner.”

Japan’s Commitment to Africa

Finance Minister Katsunobu Kato underscored the importance of resilience as a new priority, stressing that African economies face multiple pressures, including climate shocks, rising debt levels, and global supply chain disruptions.

“EPSA6’s focus on resilience will help African countries with heavy debt burdens, while also expanding private sector investment,” he said. “Africa has tremendous opportunities for significant market expansion, and Japan is committed to supporting that growth.”

Dr. Tanaka also took the opportunity to commend outgoing AfDB President Dr. Akinwumi Adesina, who has led the institution for much of EPSA’s lifespan. “Thanks to his strong ownership and support, we are pleased that EPSA5 is now almost reaching its $5 billion target by the end of this year,” he said.

Looking Ahead: Building a Resilient Future

With EPSA6, Japan and the AfDB are not only investing in Africa’s infrastructure, energy, and health but also laying the groundwork for climate resilience and inclusive growth. By broadening its mandate to address both environmental and socio-economic shocks, EPSA6 seeks to help African nations achieve sustainable development while navigating global uncertainties.

As TICAD9 underscores Africa’s central role in the global economy, EPSA6 is set to remain a cornerstone of Japan–Africa cooperation, strengthening ties between the continent and one of its most reliable development partners.