Japan and the African Development Bank (AfDB) strengthen their collaboration at the recent Africa Investment Forum (AIF) 2025 Market Days, unveiling new commitments under the Enhanced Private Sector Assistance for Africa (EPSA) initiative to mobilise private capital for the continent’s economic growth.
At the Japan Special Room event on the sidelines of the Forum in Rabat, startups, trading firms, financial institutions, and development partners participated in two high-level sessions on mobilising private capital and integrating Africa into global value chains.
In his remarks, African Development Bank Group President Dr Sidi Ould Tah highlighted the Japan-Africa partnership’s role in closing Africa’s financing gap. “The continent is growing very fast, and the potential is immense. But unlocking this potential requires both partnership and innovative financing,” he said, citing projects such as Kenya’s 35-megawatt Menengai Geothermal Plant, developed with Toyota Tsusho and Fuji Electric, and Côte d’Ivoire’s Agricultural Growth Program, implemented by NEC Corporation, both financed with AfDB support.
“These are tangible demonstrations of what is possible when we combine Africa’s opportunities with Japan’s strengths and African Development Bank’s catalytic financing,” said Dr Ould Tah.
The Enhanced Private Sector Assistance for Africa (EPSA) initiative, which is in its fifth phase, is on track to meet its $5 billion target in 2025, and EPSA 6 aims to scale commitments to $5.5 billion between 2026 and 2028, according to Shigeo Honzu, JICA Deputy Director General. He also introduced Impact Investing for Development of Emerging Africa, a new TICAD 9 initiative targeting $1.5 billion to advance financial inclusion, green growth, food security and healthcare.
The Japan-backed Fund for African Private Sector Assistance (FAPA), which provides technical assistance to de-risk projects for commercial financing, has enabled an estimated $30 billion in cumulative transaction value, according to AfDB Vice President for Finance nd Chief Financial Officer Hassatou N’sele. FAPA-backed projects have unlocked $500 million to $1 billion in investment potential, while enterprise-level programmes have supported more than 200 businesses and trained 15,000 people.
Minoru Hasegawa of Japan’s Ministry of Finance said, “For Japanese companies considering expansion into Africa, FAPA is a practical and powerful tool. Japan remains fully committed to supporting business expansion and contributing to Africa’s sustainable growth.”
Hasegawa noted that Japan’s experience and know-how could be tailored to Africa’s priorities. “Integrating African industries into global value chains is essential for the continent’s long-term growth and for the healthy development of the global economy,” he reiterated.
The first session spotlighted innovative Japanese enterprises delivering transformative solutions, including NEC Corporation’s digital agriculture solutions in Côte d’Ivoire, SOIK’s AI-driven maternal healthcare, SORA Technology’s drones and AI applications for agriculture and health, and ventures by Double Feather Partners and Space Shift, using AI to reduce investment risks.
A second high-level panel explored co-financing, credit enhancement, and blended finance to accelerate Africa's integration into global value chains, focusing on infrastructure, critical minerals, and agriculture. Senior executives of Japanese banks and institutions shared experiences in mobilising billions of dollars for African projects through risk mitigation, export credit, and blended finance structures. They included Japan’s largest bank-- Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation (SMBC), Nippon Export and Investment Insurance (NEXI), Japan Bank for International Cooperation,
Yuichiro Akita, Senior General Manager at NEXI, who spoke at the panel, emphasised the growing role of political risk insurance and export credit in supporting Japanese investment in African minerals and infrastructure. Akita noted that African governments were increasingly “open to foreign partnerships” not only in resource extraction but in associated infrastructure such as ports, railways and trade corridors.
“The scale and risk are too large for any single institution. Collaboration is indispensable.” Akita said, citing NEXI-backed projects in Madagascar, the Nacala Corridor, and port operations in Namibia and Angola.
Raisa Béliard, Vice President within the Africa Coverage & Blended Finance Team at MUFG, said blended finance and credit-enhanced structures are becoming essential to mobilising large-scale capital in Africa, particularly within the infrastructure sector. She pointed to MUFG’s active involvement, alongside the Green Climate Fund, in innovative climate-focused blended finance platforms, including the GAIA Climate Loan Fund and the Green Guarantee Company.
The Managing Director and Head of Africa Group at SMBC, Nisrin Abouelezz, said Japanese banks are applying experience in bond issuance and trade finance to expand cooperation with African sovereigns and multilaterals. SMBC has arranged Samurai bonds, syndicated facilities and blended instruments backed by JICA for Egypt, Côte d’Ivoire and Afreximbank. “In just the last three to four years, we mobilised around $3 billion from Japanese investors—including retail investors—into African instruments,” Abouelezz said, noting that Japanese-linked flows via SMBC now exceed $10 billion.
Ahmed Rashad Attout, Director of Financial Sector Development at the African Development Bank, lauded Japan’s long-standing support through FAPA and contributions to the African Development Fund. He underscored the Bank’s increasing use of partial credit guarantees, which have supported more than $4 billion in sustainability-linked bonds and loans for Benin, Côte d’Ivoire, Egypt and Togo, as well as efforts to anchor local-currency bonds issued by African commercial banks for small and medium enterprises (SMEs), women-led firms, farmers and youth.
But he cautioned that finance alone cannot deliver structural transformation. “Without the rule of law, strong regulators and sound policy frameworks, there is no sustainable investment,” Attout said. “Capital must move hand-in-hand with policy reform.”
Tatsushi Amano, Senior Executive Managing Officer, Global Head of the Energy and Natural Resources Finance Group at JBIC, stressed that Africa needs to be integrated into supply chains through industries in high-value-added sectors. He stated that, to promote high-value-added creation in Africa, infrastructure development and efficiency gains through the introduction of technology are essential, and that JBIC is ready to support these efforts.
Shoichi Suzuki, Senior Director at Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN), highlighted JOIN’s role in enabling Japanese companies to participate in overseas infrastructure projects through a combination of equity investment and hands-on support, and also introduced JOIN’s investment track record, its focus on diverse infrastructure sectors, and the key criteria guiding its investment decisions.
Guido Cicolani, Director ECA Finance at Mizuho Bank, showcased that collaboration with other financial institutions enables Mizuho to deliver comprehensive financial services across African markets. By leveraging its global network and expertise in structured finance, Mizuho aims to complement credit products with financial insights and an extensive information network to support sustainable growth across the continent.
Akira Satoh, Founder and CIO of &Capital, demonstrated that by collaborating, considering mutual compatibility, Japanese and African companies can integrate African startups into global value chains, potentially enhancing corporate value.
African Development Bank Vice President for Private Sector, Infrastructure and Industrialisation, Solomon Quaynor, highlighted Africa’s strong investment proposition driven by rapid economic growth, a young consumer market, vast arable land, and critical mineral reserves essential for global energy transition. “Africa needs massive investments—at least $1.3 trillion annually—to integrate into global value chains, and the African Development Bank will work in partnership to mobilise capital and create an enabling environment for sustainable growth,” he said.
In his closing remarks, Yasuo Takamura, Head of the Global Business Investment Support Office (GBIS) at the Cabinet Secretariat, noted: “Today’s session reaffirmed our commitment to unlocking Africa’s potential through concrete action and partnerships. Guided by TICAD’s core principles—African ownership, international partnership, and openness—we will continue to support African nations on their path to sustainable development.”
The discussions at AIF 2025 highlighted strong confidence in Africa’s investment outlook. With growing collaboration between Japan and the African Development Bank, stakeholders agreed that the partnership is well-placed to unlock greater private capital and advance Africa’s integration into global value chains. The Japan Special Room reinforced this shared commitment to scaling up impact and supporting the continent’s next phase of growth—marking a forward-looking conclusion to AIF 2025.
Source: AfDB