Japan and the African Development Bank (AfDB) announced a joint target of US$3.5 billion under the Enhanced Private Sector Assistance for Africa initiative (EPSA4), during the 7th Tokyo International Conference on African Development (TICAD 7).
Both Japan and the Bank have set a target of US$1.75 billion each, from 2020-2022, to enhance the fourth phase of EPSA to spur private-sector-led sustainable and inclusive growth in Africa.
Mr Keisuke Suzuki Japan’s Minister of Finance, said at the EPSA4 launch ceremony held in Yokohama that, “Building on the successful achievements so far, Japan and the Bank have decided to upgrade EPSA in both quality and quantity to meet financial needs for infrastructure development as well as for the private sector development in Africa.”
The event was attended by government officials and a high-level delegation from the Bank as well as representations of the business community and copied to the Ghana News Agency.
Electricity, transportation, and health will be key priorities under EPSA4. Projects and programs for the 3 key priorities will be formulated and implemented in line with the G20 Principles for Quality Infrastructure Investment and G20 Shared Understanding on the Importance of UHC Financing in Developing Countries.
African countries will also be provided with support to improve and create conducive business environments to attract private investments.
“Today marks another day to celebrate the strong and impactful partnership between Japan and the African Development Bank. The African Development Bank and the Japan International Cooperation Agency (JICA) are long-term partners for promoting the development of Africa. EPSA helps to deliver much needed support to the private sector,” Dr Akinwumi Adesina, President of the African Development, said during his address.
During EPSA1 (2005-2011), Japan set the target of providing US$ 1 billion in loans and US$ 2 billion under the second phase (2012-2016). The ongoing EPSA3 (2017-2019), Japan and the African Development Bank are cooperating closely to provide the targeted joint amount of US$ 3 billion.
As of today, the Bank and JICA under ACFA have co-financed 25 projects to improve key transportation and electricity transmission networks. These include the Construction of Three Intersections in Abidjan in Côte d’Ivoire and Power Sector Reform Program in Angola.