In a landmark move to strengthen Africa’s economic growth and resilience, the Japan International Cooperation Agency (JICA) and the African Development Bank (AfDB) have signed a Memorandum of Understanding (MoU) to launch the sixth phase of the Enhanced Private Sector Assistance program (EPSA6).
The initiative, unveiled at the Ninth Tokyo International Conference on African Development (TICAD9), is set to mobilize a joint financing package of up to $5.5 billion between 2026 and 2028, representing a $500 million increase from the previous EPSA5 phase.
The signing ceremony was attended by JICA President Dr. Akihiko Tanaka and AfDB Vice President for Power, Energy, Climate, and Green Growth, Kevin Kariuki, with Japan’s Finance Minister Katsunobu Kato as a key witness.
EPSA6 aims to provide a structured framework for co-financing critical development projects across the continent, with a focus on sectors such as power, connectivity, health, agriculture, nutrition, and, for the first time, resilience against climate shocks and economic disruptions.
Dr. Tanaka highlighted the significance of the program, noting that since its inception in 2005, EPSA agreements have channeled over $12 billion in joint support from JICA and AfDB to African countries.
“The $5.5 billion target for EPSA6 is more than five times the original EPSA1 target, reflecting the growing strength of our partnership and the increasing importance of our joint efforts in Africa’s sustainable development,” he said.
EPSA6 is expected to complement ongoing AfDB strategies for private sector development by leveraging both public and private capital to drive growth.
According to AfDB Vice President Kevin Kariuki, the initiative will provide African governments with additional financial and technical support to scale up infrastructure, enhance healthcare delivery, and boost food security, all while creating an enabling environment for private investment.
“By focusing on resilience as a new priority, EPSA6 will equip African countries to better respond to climate change, economic shocks, and other systemic risks,” Kariuki said.
“This partnership demonstrates Japan’s long-standing commitment to Africa and the AfDB’s strategic role in mobilizing resources for sustainable growth.”
The EPSA framework has historically played a pivotal role in strengthening regional integration and connectivity, enhancing access to electricity, improving agricultural value chains, and promoting inclusive healthcare.
EPSA6 is expected to build on these successes while fostering private sector-led growth, technology transfer, and capacity building across African economies.
Economic analysts believe that the new phase of EPSA will provide a major boost for African nations seeking to accelerate industrialization and infrastructure development.
With the program’s emphasis on resilience, countries are expected to better withstand environmental, economic, and social challenges, thereby promoting sustainable development across the continent.
Dr. Tanaka concluded: “Our joint efforts are not only about financing but also about building a long-term partnership that empowers African countries to achieve their development goals.
EPSA6 will strengthen collaboration, stimulate private sector growth, and ensure that Africa’s growth trajectory remains robust and sustainable.”
The EPSA6 agreement marks a continued deepening of Japan-Africa cooperation, signaling a shared commitment to creating resilient economies, fostering innovation, and supporting inclusive growth in line with the United Nations Sustainable Development Goals (SDGs).