| Africa’s Private Sector Gets $3.5 billion Support from Japan and the AfDB. |
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The fruits of the ongoing 7th Tokyo International Conference on African Development (TICAD 7) have started yielding with the joint target of $3.5 billion under the Enhanced Private Sector Assistance for Africa initiative (EPSA4) by the Government of Japan and the African Development Bank (AfDB). Both Japan and the Bank have pledged to set a target of $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. They agreed to focus on the social sectors to help in human resource development across the continent.
Speaking on the agreement, the Japanese Minister of Finance, Mr. Keisuke Suzuki said that building on the successful achievements so far, Japan and the African Development Bank 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. He added that it is his wish that the new EPSA initiative will lead to business, investment promotion, and job creation in Africa. According to the agreement, the three core areas that will be the focus for this EPSA4 would be electricity, transportation, and health. Projects and programs for these 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. Dr. Akinwumi Adesina described the development as worthy of celebration, noting that it is a sign of the strong and impactful partnership between Japan and the African Development Bank. He highlighted that 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. It could be recalled that during EPSA1 (2005-2011), Japan set the target of providing $ 1 billion in loans and $ 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 $ 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. “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. 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.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry. Facebook: https://web.facebook.com/Afrikanheroes/
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