The cooperation is under the fifth phase of the Enhanced Private Sector Assistance for Africa initiative (EPSA) from 2023 to 2025.
This is contained in a statement issued by the Communication and External Relations Department of the bank.
The announcement was made at the Eighth Tokyo International Conference on African Development (TICAD8) held in the Tunisian capital, Tunis.
The funds consist of four billion dollars under the existing window, and an additional up to one billion dollars that will be provided under a new Special Window.
Japan would 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.
At the inauguration of the EPSA 5, Mr Masato Kanda, Japan’s Vice-Minister of Finance for International Affairs, said his country was committed to supporting African countries while respecting their own initiatives.
Dr Akihiko Tanaka, the President of Japan International Cooperation Agency (JICA), said enhancing resilience and promoting human security were 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.”
Also speaking, AfDB President, Dr Akinwumi Adesina said the initiative was the kind of cooperation Africa and the world needed.
“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 mobilise the private sector and create job opportunities in Africa.
“The newly signed initiative will positively impact millions of lives across Africa.”
According to the statement, given the importance of food security, Japan and the AfDB will add agriculture and nutrition as a priority area under EPSA 5.
As a result, EPSA 5 would cover electricity, connectivity, health, agriculture and nutrition as priority areas in order to address key challenges in Africa.
Japan and the bank would further join forces to support countries that address enormous challenges, including food security, climate change, health, digitisation, and debt issues.
(NAN)
