Japan, AfDB sign $5.5bn EPSA6 deal at TICAD9 to boost Africa’s private sector

The African Development Bank (AfDB) and the Government of Japan have signed a new agreement to inject $5.5 billion into Africa’s private sector, marking the start of the sixth phase of the Enhanced Private Sector Assistance (EPSA) initiative.

The deal was sealed on Thursday during the Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama. Japan’s Finance Minister Katsunobu Kato witnessed the signing by Japan International Cooperation Agency (JICA) President Dr. Akihiko Tanaka and AfDB Vice President for Power, Energy, Climate and Green Growth, Kevin Kariuki.

EPSA6, which will run from 2026 to 2028, represents an expansion of previous efforts, adding resilience as a priority to strengthen Africa’s response to climate change and other systemic shocks. The $5.5 billion pledge is $500 million higher than EPSA5 and more than five times the initial target set when the programme began in 2005.

“This ambitious new target reflects the growing strength of our partnership and the importance of our joint efforts,” said Dr. Tanaka, noting that EPSA has evolved into AfDB’s largest and longest-standing bilateral partnership.

Over the years, EPSA has supported major projects such as the Bujagali Hydropower Plant in Uganda, the RASCOM satellite system, the East Africa Submarine Cable System, Nigeria’s Lekki Toll Road, and Kigali’s bulk water supply project. Under its non-sovereign operations component, the AfDB benefits from concessional credit lines from JICA to finance private sector ventures.

Outgoing AfDB President Dr. Akinwumi Adesina was commended for his role in scaling the initiative over the past decade. EPSA5, launched in 2023 with a $5 billion goal, has already mobilized $4 billion and is projected to close at $5.6 billion, surpassing expectations by 112%.

Japan’s Finance Minister Katsunobu Kato reiterated Tokyo’s commitment to African development, stressing the continent’s vast market potential. “EPSA6’s focus on resilience will help ease debt vulnerabilities and attract more private investment,” he said.

Kevin Kariuki described Japan as “one of AfDB’s strongest shareholders and a pioneer in private sector support for Africa since 2005.”

EPSA6 Snapshot

Funding: $5.5 billion (2026–2028)

Focus areas: Power, connectivity, health, agriculture, nutrition, resilience

Partners: AfDB and JICA

Impact to date: $12 billion in co-financing since 2005