Enhanced Private Sector Assistance Initiative Launched for African Development

Strategic Insights -

The Japan International Cooperation Agency (JICA) and the African Development Bank (AfDB) have signed a Memorandum of Understanding launching the sixth phase of the Enhanced Private Sector Assistance (EPSA6) agreement, marking a significant step forward in their partnership to support African development. Under EPSA6, the two organizations will work together to support regional member countries over the period 2026-2028, aiming to achieve a joint financing target of up to $5.5 billion, a substantial increase from the previous target. The signing ceremony took place during the Ninth Tokyo International Conference on African Development (TICAD9), with key stakeholders in attendance.

Key Takeaways:

  • The Enhanced Private Sector Assistance (EPSA6) initiative will provide a framework for critical resource mobilization and development partnership for African countries, with a focus on power, connectivity, health, agriculture, and nutrition.
  • The joint financing target for EPSA6 is up to $5.5 billion, representing an increase of half a billion dollars from the previous EPSA5 agreement.
  • The EPSA initiative has been in operation since 2005, supporting the implementation of the African Development Bank's Strategy for Private Sector Development.
  • The partnership under previous EPSA agreements has resulted in $12 billion of joint support to Africa from the African Development Bank and JICA.
  • The $5.5 billion target for EPSA6 is more than five times the original target of EPSA1, set 20 years ago.
  • Resilience will be a new priority under EPSA6, aiming to address not only climate change but also a broad range of shocks, including economic and social vulnerabilities.
  • The signing ceremony was attended by key stakeholders, including JICA President Dr. Akihiko Tanaka, AfDB Vice President Kevin Kariuki, and Japan's Finance Minister Katsunobu Kato.

Statistics:

  • $12 billion: The joint support provided to Africa by the African Development Bank and JICA under previous EPSA agreements since 2005.
  • $5.5 billion: The joint financing target for EPSA6, a substantial increase from the previous target.
  • 20 years: The time frame since the original target of EPSA1 was set.
  • 2026-2028: The period during which the EPSA6 initiative will be implemented.
  • 50%: The increase in the joint financing target for EPSA6 compared to EPSA5.

Sources:

  • Global Data Point, 2025.

Note: The source date is 2025 as per the given text.