The Japan International Cooperation Agency (JICA) and the African Development Bank (AfDB) have signed a new agreement to mobilize $5.5 billion in financing for Africa’s private sector under the sixth phase of the Enhanced Private Sector Assistance initiative (EPSA6).
The deal, signed during the Ninth Tokyo International Conference on African Development in Yokohama, marks a deepening of cooperation between Japan and the Bank. The three-year framework, running from 2026 to 2028, exceeds the $5 billion target of the previous EPSA phase and reflects growing momentum behind Africa’s development agenda.
EPSA, created in 2005, supports projects in power, connectivity, agriculture, nutrition and health. Under EPSA6, resilience will also become a core priority, addressing climate change and broader economic shocks. Since its inception, the initiative has facilitated $12 billion in joint support to Africa.
JICA President Dr. Akihiko Tanaka highlighted the impact of the partnership, noting that the current target is more than five times higher than that of EPSA’s first phase. He also praised outgoing AfDB President Dr. Akinwumi Adesina for his role in championing the initiative’s growth.
African Development Bank Vice President Kevin Kariuki emphasized Japan’s role as a leading shareholder and long-standing partner of the Bank. He described EPSA as the largest bilateral collaboration with any development finance institution and credited it with funding transformative projects such as Uganda’s Bujagali Hydropower Plant, Nigeria’s Lekki Toll Road, and Rwanda’s Kigali Bulk Water Supply.
Japan’s Finance Minister, Mr. Katsunobu Kato, said EPSA6’s resilience focus would help countries with high debt burdens while encouraging stronger private sector investment. He stressed that Africa offers significant opportunities for market expansion, making it an attractive frontier for investors.
EPSA5, which ends in 2025, has already delivered $4 billion in joint financing with another $1.6 billion worth of projects advancing toward completion. With EPSA6, stakeholders believe Africa is better positioned to scale infrastructure, unlock private sector growth, and build more resilient economies.
