./PHOTO ; AFDB
Japan and the African Development Bank (AfDB) have unveiled new initiatives to mobilise private capital for Africa’s economic growth at the Africa Investment Forum (AIF) 2025.
The discussions brought together Japanese companies, banks, and African financial institutions to explore ways to fund infrastructure, agriculture, and startups across the continent.
AfDB’s partnership with Japan focuses on leveraging private investment and innovative financing tools to close Africa’s financing gap.
African Development Bank Group President Dr. Sidi Ould Tah highlighted the potential:
“The continent is growing very fast, and the potential is immense. But unlocking this potential requires both partnership and innovative financing.”
He cited examples such as Kenya’s 35-megawatt Menengai Geothermal Plant and Côte d’Ivoire’s Agricultural Growth Program, both financed with AfDB support.
“These are tangible demonstrations of what is possible when we combine Africa’s opportunities with Japan’s strengths and the African Development Bank’s catalytic financing,” Dr. Ould Tah added.
A key focus of the Forum was the Enhanced Private Sector Assistance for Africa (EPSA) initiative, now in its fifth phase, which aims to mobilise $5 billion in private sector investment by the end of 2025.
The next phase, running from 2026 to 2028, targets $5.5 billion.
EPSA works alongside the Fund for African Private Sector Assistance (FAPA), which helps reduce investment risk and attract commercial financing.
Japanese banks and institutions are playing a major role in mobilising private capital through blended finance, credit guarantees, and structured investment platforms.
Raisa Béliard, Vice President 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 with climate-focused blended finance platforms such as the GAIA Climate Loan Fund and the Green Guarantee Company, which help investors manage risk while funding impactful projects.
Japanese companies are also bringing technology and innovation to Africa.
NEC Corporation is deploying digital solutions to boost agriculture in Côte d’Ivoire, SOIK uses AI to improve maternal healthcare, and SORA Technology applies drones and AI for farming and health services.
These projects show how private sector investment, technical expertise, and local knowledge can combine to support sustainable growth.
Minoru Hasegawa of Japan’s Ministry of Finance highlighted the value of FAPA and Japanese expertise:
“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.”
He added, “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.”
The Forum also stressed the importance of integrating African businesses into global value chains.
Linking local industries to international markets can create sustainable jobs, encourage technology adoption, and attract further investment.
Japanese institutions are sharing experience in trade finance, risk mitigation, and structured finance to help African companies scale globally.
AfDB officials underscored Africa’s strong investment potential.
With fast-growing economies, a young population, fertile land, and critical minerals needed for the energy transition, Africa is a promising destination for private capital.
The partnership between AfDB and Japan aims to create enabling conditions for investment, reduce project risks, and support long-term development across the continent.
The AIF 2025 sessions reinforced confidence in Africa’s private sector and highlighted the role of public-private collaboration.
By combining Japanese expertise, blended finance, and catalytic support from AfDB, Africa is better positioned to attract private investment, scale infrastructure and technology projects, and integrate into global markets.
