Japan and African Development Bank on Friday announced $3.5 billion in support of Africa’s private sector development.
Among the key priorities that were identified are electricity, transport, and health.
Under the Enhanced Private Sector Assistance for Africa initiative (EPSA4), Japan and AfDB set a target of $1.75 billion each, from 2020-22, to enhance the fourth phase of EPSA, which targets to spur private-sector-led sustainable and inclusive growth in Africa.
“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,” Japan’s State Minister of Finance Keisuke Suzuki said at the EPSA4 launch ceremony in Yokohama during the Ticad 7 meeting.
“I wish that the new EPSA initiative will lead to business, investment promotion, and job creation in Africa,” Suzuki noted.
The three 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 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.
During EPSA1 (2005-11), Japan set the target of providing $1 billion in loans and $ 2 billion under the second phase (2012-16). The ongoing EPSA3 (2017-19), Japan and the African Development Bank are cooperating to provide the targeted joint amount of $ 3 billion.
As of today, AfDB and JICA under ACFA have co-financed 25 projects to improve 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.
“Under EPSA 4, JICA and the African Development Bank will provide co-financing of $3.5 billion. This is a significant increase over EPSA-3. Increase is what we need to meet the needs of Africa. Increase is what we need to raise the level of our ambitions for Africa.,” Dr Adesina said.