The African Development Bank (AfDB) and the Japan International Cooperation Agency (JICA) have agreed to inaugurate the sixth phase of the Enhanced Private Sector Assistance (EPSA6) initiative.

The AfDB, in a statement on its website, said both organisations signed a Memorandum of Understanding (MoU) during the ongoing Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama, Japan.

According to the bank, EPSA6 will mobilise up to 5.5 billion dollars between 2026 and 2028 — half a billion dollars more than the preceding EPSA5 agreement.

EPSA, launched in 2005 by the AfDB and the Government of Japan, supports private sector-led growth in Africa with a focus on power, connectivity, health, agriculture, and nutrition.

Under EPSA6, resilience has been introduced as a new priority, with emphasis on addressing climate change and other shocks facing African economies.

The initiative aims to further strengthen private sector development across the Bank’s regional member countries.

JICA president, Akihiko Tanaka, said co-financing under previous phases had already mobilised about 12 billion dollars.

He noted that the 5.5 billion dollar target for EPSA6 represented more than five times the original commitment under EPSA1.

Mr Tanaka also commended outgoing AfDB president, Akinwumi Adesina, for his leadership in sustaining and expanding the programme.

“This reflects the growing strength of our partnership and the increasing importance of our joint effort.

“With this focus, we are committed to addressing not only climate change but also a broad range of shocks,” Mr Tanaka stated.

AfDB vice president, Kevin Kariuki, said Japan remained one of the bank’s strongest partners, while describing EPSA as 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,” Mr Kariuki said.

Mr Kariuki said EPSA5, which ran from 2023 to 2025, had achieved four billion dollars in joint co-financing, with projects worth 1.6 billion dollars at an advanced stage by the end of 2025.

Japan’s finance minister, Katsunobu Kato, said EPSA6’s focus on resilience would help African countries manage debt burdens while creating opportunities for private sector investment.

“Africa has tremendous opportunities for significant market expansion,” Mr Kato stated.

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

(NAN)