The African Development Bank (AfDB) and the Japan International Cooperation Agency (JICA) have agreed to inaugurate the sixth phase of the Enhanced Private Sector Assistance (EPSA6) initiative.

The AfDB, in a statement on its website, said both organisations signed a Memorandum of Understanding (MoU) during the ongoing Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama Japan.

According to the bank, EPSA6 will mobilise up to 5.5 billion dollars between 2026 and 2028 — half a billion dollars more than the preceding EPSA5 agreement.

EPSA, launched in 2005 by the AfDB and the Government of Japan, supports private sector-led growth in Africa with a focus on power, connectivity, health, agriculture, and nutrition.

Under EPSA6, resilience has been introduced as a new priority, with emphasis on addressing climate change and other shocks facing African economies. The initiative aims to further strengthen private sector development across the Bank’s regional member countries.

JICA President, Dr Akihiko Tanaka, said cofinancing under previous phases had already mobilised about 12 billion dollars. He noted that the 5.5 billion dollar target for EPSA6 represented more than five times the original commitment under EPSA1.

Tanaka also commended outgoing AfDB President, Dr Akinwumi Adesina, for his leadership in sustaining and expanding the programme.

The African Development Bank (AfDB) and Japan International Cooperation Agency (JICA) had agreed to inaugurate the sixth phase of the Enhanced Private Sector Assistance (EPSA6) initiative.