Japan, AfDB announce $5 billion financial cooperation to address key African Challenges

From left to right: Japan’s Vice-Minister of Finance for International Affairs, Masato Kanda; African Development Bank President, Akinwumi Adesina; Japan International Cooperation Agency President, Akihiko TANAKA. (Source: AfDB)

The government of Japan and the African Development Bank have announced a $5 billion financial cooperation under the fifth phase of the Enhanced Private Sector Assistance for Africa initiative (EPSA) from 2023 to 2025.

The announcement was made at the Eighth Tokyo International Conference on African Development (TICAD8) held Sunday 28 August 2022 in the Tunisian capital, Tunis.

The funds are made up of $4 billion from the current window and an extra amount of up to $1 billion from a new Special Window. Japan will create this Special Window to assist nations that are improving their debt circumstances steadily and significantly through other reforms, the strengthening of debt transparency and sustainability, and other measures.

Given the significance of food security, agriculture and nutrition will be added as a priority issue under EPSA 5 by Japan and the African Development Bank. As a result, EPSA 5 will cover 1) electricity, 2) connectivity 3) health, 4) agriculture and nutrition as priority areas in order to address key challenges in Africa.

At the EPSA 5 launch ceremony, Japan’s Vice-Minister of Finance for International Affairs, Mr. Masato Kanda, said his country is dedicated to supporting African countries while respecting their own initiatives.

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.”

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.”


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