Japan AfDB $5.5B Deal at TICAD9 to Boost Africa’s Private Sector

 The Ninth Tokyo International Conference on African Development (TICAD9) became a turning point for Africa’s private sector. At the event, Japan and the African Development Bank (AfDB) signed a landmark agreement to launch the sixth phase of the Enhanced Private Sector Assistance initiative (EPSA6). The new Japan AfDB $5.5B deal will mobilize critical resources between 2026 and 2028, with a strong focus on resilience, private sector growth, and sustainable development.

Strengthening a Two-Decade Partnership

The EPSA initiative began in 2005 as a collaboration between Japan and AfDB. Over the past two decades, it has financed projects in power, health, agriculture, and infrastructure across Africa. Now, EPSA6 builds on this legacy with an even bigger target. Unlike the previous phase, EPSA6 increases total funding from $5 billion to $5.5 billion, signaling stronger commitment and deeper collaboration.

Dr. Akihiko Tanaka, President of the Japan International Cooperation Agency (JICA), signed the agreement alongside Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth. Japan’s Finance Minister Katsunobu Kato witnessed the ceremony in Yokohama.

Tanaka explained that previous EPSA partnerships had already delivered $12 billion in support to Africa. He emphasized that the new Japan AfDB $5.5B deal reflects the growing strength of the partnership. He also highlighted resilience as a fresh priority, ensuring Africa can tackle not only climate change but also economic and social shocks.

Building on EPSA5 Success

EPSA5, which ran from 2023 to 2025, set a $5 billion target. By the end of 2025, AfDB and JICA expect co-financing to exceed $5.6 billion — a remarkable 112% of the original goal. Projects under EPSA5 ranged from large-scale energy plants to connectivity projects that linked communities and boosted trade.

Because of this track record, leaders at TICAD9 believe EPSA6 will play an even bigger role in shaping Africa’s future. Minister Kato said the focus on resilience will not only protect African economies from debt stress but also attract stronger private sector participation.

Transforming Africa’s Private Sector

The Japan AfDB $5.5B deal will directly support AfDB’s private sector development strategy. Together, JICA and AfDB will channel funds toward power projects, connectivity, healthcare, agriculture, and nutrition. These sectors are critical to inclusive growth. Moreover, the concessional credit lines from JICA will give African enterprises easier access to financing, fueling innovation and job creation.

Previous EPSA projects such as Uganda’s Bujagali Hydropower Plant, Rwanda’s Kigali Bulk Water Supply, Nigeria’s Lekki Toll Road, and Africa’s first communication satellite RASCOM highlight how transformative the initiative has been. EPSA6 aims to build on this momentum with even more impactful projects.

Resilience as a Core Priority

For the first time, resilience takes center stage. By introducing resilience into EPSA6, Japan and AfDB aim to help African nations prepare for climate shocks, global crises, and market volatility. Tanaka said that addressing these challenges requires coordinated action, and EPSA6 provides the right framework.

Kevin Kariuki also praised Japan’s consistent role as one of AfDB’s strongest shareholders and long-term partners. He stated that the Japan AfDB $5.5B deal will create new opportunities for Africa’s private sector and consolidate the continent’s position as a hub of growth.

Looking Ahead

Africa faces challenges such as high debt burdens and climate risks, but it also holds enormous opportunities for market expansion. With EPSA6, both Japan and AfDB are signaling confidence in Africa’s ability to rise as a global growth engine.

As TICAD9 closes, the Japan AfDB $5.5B deal stands out as a symbol of trust, resilience, and partnership. Over the next three years, it will not only unlock billions in financing but also deepen collaboration between Asia and Africa. Most importantly, it will empower African countries to chart their own sustainable growth path.

#AfDB#Japan#PrivateSectorGrowth#TICAD9AfricaDevelopmentFinanceSustainability