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Physical trade infrastructure - Japan

Physical trade infrastructure - Japan

Information dated: 2017
Enhancing Private Sector Assistance for Africa (EPSA)

EPSA is a framework supporting the AfDB’s Private Sector Development Strategy. Drawing on successful development experience in Asia and around the globe, EPSA was conceived in partnership with the Government of Japan. In addition to Accelerated Co-Finance Facility for Africa (ACFA) which finances sovereign projects to develop economic infrastructure, Non-sovereign Loan (NSL) component has been set up with AfDB under the EPSA. The NSL component helps finance the Bank’s private sector operations through a line of credit from JICA to the Bank on concessional terms. The first EPSA was launched at Gleneagles summit in 2005 and Japan announced the provision of Japanese yen loan amounting to 1 billion US dollarsEPSA1, which has been accomplished. Additionally, 1 billion US dollar worth Japanese yen loan over five years was pledged in 2012 (EPSA2). In 2016, the Government of Japan and AfDB announced to set a next joint target to provide US$ 3 billion for private sector development in Africa during the next three years, substantially increasing the resources devoted to boosting economic growth and fighting poverty in the region (EPSA3). As of the end of 2016, 1,150 million USD has been disbursed under NSL component, which has supported the investment and financing of a number of regional infrastructure and financial sector projects as well as clean energy projects in Uganda and Madagascar, and SME/microfinance projects in Nigeria and Tanzania.