The African Development Bank (AfDB) and the Government of Japan have committed $5.5 billion to support private sector growth in Africa, marking the start of the sixth phase of the Enhanced Private Sector Assistance (EPSA) programme.

The agreement was signed at the Ninth Tokyo International Conference on African Development (TICAD9) 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.

EPSA6, running from 2026 to 2028, increases the programme’s focus on resilience, aiming to strengthen Africa’s capacity to withstand climate change and other systemic shocks. The $5.5 billion commitment surpasses EPSA5 by $500 million and is more than five times the programme’s initial funding target when it launched in 2005.

Since its inception, EPSA has financed major infrastructure and private sector projects including Uganda’s Bujagali Hydropower Plant, the RASCOM satellite system, the East Africa Submarine Cable System, Nigeria’s Lekki Toll Road, and Kigali’s bulk water supply initiative. Non-sovereign operations under EPSA allow the AfDB to deploy concessional credit lines from JICA to back private sector ventures.

EPSA5, launched in 2023 with a $5 billion target, has already mobilized $4 billion and is expected to close at $5.6 billion, exceeding its goal by 12%.

Japan’s Finance Minister Kato said EPSA6 would help mitigate debt vulnerabilities while attracting additional private capital. AfDB Vice President Kevin Kariuki described Japan as “one of AfDB’s strongest shareholders and a pioneer in private sector support for Africa since 2005.”