The Government of Japan and the African Development Bank (AfDB) have signed a new agreement to mobilise resources for Africa’s development, unveiling a $5.5 billion package under the sixth phase of the Enhanced Private Sector Assistance for Africa (EPSA6).
The deal, signed on Thursday on the sidelines of the Ninth Tokyo International Conference on African Development (TICAD9), marks the largest financial commitment under the initiative since its inception in 2005. EPSA6 will run from 2026 to 2028 and represents an increase of $500 million from EPSA5, with a focus on private sector financing, resilience, and debt sustainability for African countries.
The Memorandum of Understanding was signed by Japan International Cooperation Agency (JICA) President Dr Akihiko Tanaka and AfDB Vice President for Power, Energy, Climate and Green Growth Kevin Kariuki, in the presence of Japan’s Finance Minister Katsunobu Kato.
Dr Tanaka said the co-financing partnership had already channelled $12 billion into Africa through EPSA since 2005, supporting infrastructure, energy, health and agriculture. He described EPSA6 as “five times larger than the first EPSA target two decades ago,” reflecting the growing strength of Japan-AfDB cooperation. He also highlighted resilience as a new priority area, noting that “with this focus we are committed to address not only climate change but also a broad range of shocks.”
The outgoing AfDB President, Dr Akinwumi Adesina, was praised for his stewardship, which helped EPSA5 reach almost $5 billion by the end of this year. In fact, Mr Kariuki confirmed that EPSA5 had already mobilised $4 billion, with projects worth $1.6 billion in advanced stages, expected to push total financing to $5.6 billion by December 2025, surpassing its target by 12 percent.
Mr Kariuki emphasised Japan’s role as a key shareholder of the AfDB and a major contributor to the African Development Fund. “EPSA is the largest and longest-standing bilateral partnership the Bank has with any of its member countries. Japan has been an early mover in supporting private sector development in Africa since 2005, and I am confident this collaboration will continue to deliver transformative results,” he said.
Past EPSA projects have supported landmark developments including Uganda’s Bujagali Hydropower Plant, the East Africa Submarine Cable System, Nigeria’s Lekki Toll Road, Rwanda’s Kigali Bulk Water Supply, and Africa’s first communication satellite RASCOM.
Finance Minister Kato welcomed the new emphasis on resilience, saying it would help African countries manage debt pressures while expanding opportunities for private sector investment.
EPSA6 underscores Japan’s long-term commitment to Africa’s economic transformation, building on two decades of co-financing that has helped expand energy access, improve connectivity, strengthen health systems, and enhance food security across the continent.
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