Japan, AfDB Offer $3.5bn To Support Africa’s Power, Transport, Health Sectors

Discussions at the 7th Tokyo International Conference on African Development (TICAD 7) continued on Friday in Yokohama, with Japan and the African Development Bank, said they will jointly target a $3.5bn funding under the Enhanced Private Sector Assistance for Africa initiative (EPSA4).
According to a statement by the AfDB, both parties will each set aside 50% between 2020 and 2022, to enhance the fourth phase of EPSA, in a bid to spur private-sector-led sustainable and inclusive growth in Africa.
Electricity, transportation, and health will be key priorities under EPSA4, even as projects and programmes in all three sectors 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 to support the private sector,” Dr. Akinwumi Adesina, President of the African Development, said during his address.
AfDB recalled that during EPSA1 (2005-2011), Japan targeted providing $1bn in loans and $2bn under the second phase (2012-2016).
Currently, the AfDB and JICA, under the ACFA have co-financed 25 projects to improve key transportation and electricity transmission networks, including the construction of three intersections in Abidjan in Côte d’Ivoire and Power Sector Reform programme in Angola.
“Under EPSA 4, JICA and the African Development Bank will provide co-financing of $3.5bn. This is a significant increase over EPSA-3. The increase is what we need to meet the needs of Africa. The increase is what we need to raise the level of our ambitions for Africa. The increase is what we need to build upon the solid foundations of co-financing over the last 13 years, and deliver even greater and more impactful development results in the years ahead. Now, let us arise with renewed vigor. Let us deliver even greater impacts for African countries through EPSA 4,” Dr. Adesina concluded.