Japan, AfDB include agriculture, nutrition in recently announced US$5 billion support for Africa’s private sector

AFRICA – The government of Japan and the African Development Bank have added agriculture and nutrition as a priority area under Enhanced Private Sector Assistance for Africa initiative (EPSA).

The Enhanced Private Sector Assistance (EPSA) Initiative is an innovative, multi-component, multi-donor framework for resource mobilization and development partnership to support implementation of the AfDB’s Strategy for Private Sector Development.

Drawing on successful development experience in Asia and around the globe, EPSA was conceived in partnership with the Government of Japan (GOJ), which has provided generous financial support to its implementation since 2005

Launching phase 5 of the program at the Eighth Tokyo International Conference on African Development (TICAD8) held 28 August 2022 in Tunis, the parties announced a US$5 billion financial cooperation under the fifth phase of the Enhanced Private Sector Assistance for Africa initiative (EPSA) from 2023 to 2025.

The funds consist of US$4 billion under the existing window, and an additional up to US$1 billion that will be provided under a new Special Window.

Japan will establish this Special Window to support countries that are making progress in the enhancement of debt transparency and sustainability, and other reforms, thereby making steady and significant improvement in their debt situations.

The African Development Bank Group President Dr. Akinwumi Adesina said, “EPSA 5 is the kind of cooperation Africa and the world needs. Escalating climate change impacts, the Covid-19 pandemic, and the war in Ukraine means that we must do even more than we already have done, to mobilize the private sector and create job opportunities in Africa. The newly signed initiative will positively impact millions of lives across Africa.”

Other than the food and agriculture sector, EPSA 5 will also cover electricity, connectivity and health, in order to address key challenges in Africa.

The President of Japan International Cooperation Agency (JICA) Dr. Akihiko TANAKA said, “Under the severe situation caused by multiple crises, enhancing resilience and promoting human security are critical components of Japan’s support for Africa.

“EPSA is an essential element of our partnership with the African Development Bank to tackle social and economic challenges facing the continent. JICA commits to work with EPSA to create a bright and prosperous future.”

Japan and the African Development Bank will join forces to support countries that address enormous challenges, including food security, climate change, health, digitalization, and debt issues.

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