Japan and AfDB Seal $5.5bn Pact to Strengthen Africa’s Private Sector Growth
The Japan International Cooperation Agency (JICA) and the African Development Bank (AfDB) have entered into a new $5.5 billion financing deal to accelerate private sector development across Africa. The agreement, signed at the Ninth Tokyo International Conference on African Development in Yokohama, launches the sixth phase of the Enhanced Private Sector Assistance initiative, known as EPSA6.
The three-year framework, which will run from 2026 to 2028, surpasses the $5 billion target of EPSA5 and underscores Japan’s growing commitment to Africa’s development priorities. Since the programme’s inception in 2005, JICA and AfDB have jointly mobilized about $12 billion to support critical projects on the continent.
EPSA has traditionally focused on power, agriculture, health, nutrition and connectivity, but the latest phase adds resilience as a new pillar to tackle climate change and economic shocks. JICA President Dr. Akihiko Tanaka said this evolution reflects the strength of the partnership and the rising urgency of Africa’s development needs. He commended AfDB President Dr. Akinwumi Adesina for his leadership, which has shaped much of EPSA’s success over the years.
AfDB Vice President for Power, Energy, Climate and Green Growth, Kevin Kariuki, highlighted Japan’s status as one of the Bank’s most significant shareholders and described EPSA as its largest and longest-running bilateral partnership. He pointed to landmark projects financed under previous phases, including Uganda’s Bujagali Hydropower Plant, the Lekki Toll Road in Nigeria, Rwanda’s Kigali Bulk Water Supply, and the Pan-African RASCOM satellite project.
Japan’s Finance Minister, Katsunobu Kato, welcomed the emphasis on resilience in EPSA6, noting that it would provide vital support to African countries struggling with debt pressures while attracting greater private sector investment. He said Africa’s expanding markets make the continent one of the most promising destinations for global investors.
EPSA5, which concludes in 2025, has already achieved $4 billion in financing commitments, with another $1.6 billion in projects advancing toward completion. With EPSA6, Africa is set to deepen its infrastructure base, create stronger value chains, and enhance the resilience of its economies, laying the groundwork for sustained private sector-led growth.
