By Etienne Mainimo Mengnjo
The governments of Japan and the African Development Bank, AfDB have signed a Memorandum of Understanding to launch the sixth phase of the Enhanced Private Sector Assistance (EPSA6) agreement. The new phase provides a framework for critical resource mobilization and development partnership for African countries.
The MoU was signed on Thursday, August 21, during the ongoing Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama, Japan. Dr. Akihiko Tanaka, President of the Japan International Cooperation Agency (JICA), signed on behalf of the government of Japan, while Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate, and Green Growth, signed on behalf of the bank. Japan’s Finance Minister, Katsunobu Kato, witnessed the ceremony.
Under the EPSA6 agreement, the bank and JICA will work together to support regional member countries from 2026 to 2028, with a financial package of up to $5.5 billion—half a billion more than EPSA5—while ensuring the debt sustainability of African nations.
Speaking at the signing ceremony, Dr. Tanaka noted that co-financing under previous EPSA agreements since 2005 had resulted in $12 billion in support to Africa from the African Development Bank and JICA. He added that the ambitious new $5.5 billion target for EPSA6 is more than five times the original target of EPSA1, which was set 20 years ago.
“This reflects the growing strength of our partnership and the increasing importance of our joint effort,” he said. Dr. Tanaka also announced that resilience would be a new priority under EPSA6. “With this focus, we are committed to addressing not only climate change but also a broad range of shocks,” he explained.
Tanaka also commended the role played by the outgoing African Development Bank President, Dr. Akinwumi Adesina, during his tenure. “Thanks to his strong ownership and support, we are pleased that EPSA5 is now almost reaching its target of $5 billion by the end of this year,” he said.
“The Government of Japan is one of the strongest shareholders of the African Development Bank and a key contributor to the African Development Fund. In addition, EPSA is the largest and longest-standing bilateral partnership the bank has with any of its member countries. We recognize that Japan has been an early mover in supporting the private sector in Africa since 2005,” Kariuki said.
He added, “I wish to applaud the continued commitment of the Government of Japan toward Africa’s development, and I am confident that we will consolidate the successes of development collaborations between Japan and Africa in a mutually agreeable manner.”
EPSA 5, which ran from 2023 to 2025, involved a $5 billion financial cooperation package announced at the Eighth Tokyo International Conference on African Development (TICAD8) in 2022.
Kariuki stated that EPSA5 had already achieved a $4 billion joint co-financing target as of today, with an additional $1.6 billion worth of projects at an advanced stage of co-financing by the end of 2025. This will lead to a total of $5.6 billion in co-financing by the end of December 2025, which is 112% of the $5 billion target.
In his opening comments, Minister Kato said EPSA6’s focus on resilience would help African countries with heavy debt burdens and expand private sector investment. “Africa has tremendous opportunities for significant market expansion,” Kato noted.
The EPSA Initiative, created in partnership with the Government of Japan in 2005, supports the implementation of the bank’s Strategy for Private Sector Development. Its key priorities are power, connectivity, health, agriculture, and nutrition.
