Japan and African Development Bank Sign Agreement to Extend Enhanced Private Sector Assistance for $5.5 Billion Sixth Phase

Strategic Insights -

The African Development Bank and the Government of Japan have signed an agreement to launch the sixth phase of the Enhanced Private Sector Assistance (EPSA6) program, providing a framework for resource mobilization and development partnership for African countries. The agreement, signed during the Ninth Tokyo International Conference on African Development (TICAD9), aims to support regional member countries from 2026-2028 with a financial package of up to $5.5 billion, surpassing the previous target of EPSA5 by half a billion dollars.

Key Takeaways:

  • The African Development Bank and the Government of Japan will work together to support regional member countries from 2026-2028 under EPSA6, with a financial package of up to $5.5 billion.
  • The partnership aims to promote private sector development in Africa, with a focus on power, connectivity, health, agriculture, and nutrition.
  • The EPSA Initiative has a successful track record, with co-financing under previous EPSA agreements since 2005 resulting in $12 billion of support to Africa from the African Development Bank and JICA.
  • The new target for EPSA6 is more than five times the original target of EPSA1, 20 years ago.
  • Resilience will be a new priority under EPSA6, addressing climate change and other shocks.
  • The partnership has contributed to several infrastructure projects, including the Bujagali Hydropower Plant (Uganda), RASCOM (the first Pan-African communication satellite), and the Kigali Bulk Water Supply in Rwanda.
  • EPSA5 achieved a $4 billion joint cofinancing target as of today, with projects worth $1.6 billion at an advanced stage of co-financing by the end of 2025, leading to a total of $5.6 billion of co-financing by the end of December 2025.
  • The partnership aims to consolidate the successes of development collaborations between Japan and Africa in a mutually agreeable manner.

Statistics:

  • The financial package for EPSA6 is up to $5.5 billion.
  • The partnership aims to mobilize $12 billion of support to Africa from the African Development Bank and JICA since 2005.
  • The new target for EPSA6 is more than five times the original target of EPSA1, 20 years ago.
  • EPSA5 achieved a $4 billion joint cofinancing target as of today.
  • Projects worth $1.6 billion are at an advanced stage of co-financing under EPSA5 by the end of 2025.
  • A total of $5.6 billion of co-financing was achieved by the end of December 2025 under EPSA5.

Sources:

  • The African Development Bank
  • Japan International Cooperation Agency (JICA)
  • Ninth Tokyo International Conference on African Development (TICAD9)
  • Government of Japan