Africa is an attractive investment destination for Japanese firms, offering high growth potential and strong support from the African Development Bank, leaders of the African Development Bank Group emphasized at the Japan-Africa Business Forum in Tokyo.
“Africa provides significant opportunities for the private sector. It offers some of the highest returns globally,” said Prof. Kevin Chika Urama, Chief Economist and Vice President of the Bank Group, emphasizing Africa’s abundant renewable energy potential and the importance of strategic investments in green minerals and value addition. “Investing smartly in Africa is not only good business, but also doing good,” he stressed.
Dr. Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth, highlighted Japan’s competitive advantage in geothermal technology. “90% of all turbines in Kenya are from Japan, particularly Mitsubishi,” he noted. Kariuki also positioned Africa as a solution to Europe’s energy challenges, with planned interconnections for exporting power and hydrogen.
The forum was organized by the African Development Bank and Keizai Doyukai, the Japanese Association of Corporate Executives, with support from Japan’s Ministry of Finance.
Bank leaders reaffirmed the institution’s commitment to making investments in Africa more appealing. “We have facilities within the Bank to mitigate risks associated with these projects,” said Kariuki, mentioning the Sustainable Energy Fund for Africa’s (SEFA) support for the Kom Ombo and Kairouan solar projects amidst rising costs.
Kazuko Nagura from Japan’s Ministry of Economy, Trade, and Industry (METI) announced plans to host the third Japan-Africa Public-Private Economic Forum later this year. The event will provide Japanese companies with the opportunity to engage in business development and networking in Africa. Nagura also referenced the ministry’s efforts to support Japanese business ventures in Africa, such as the AfDX program and Expo 2025 Osaka, Kansai scheduled for next year.
During a panel discussion on investing in African startups, Solomon Quaynor, Vice President for Private Sector, Infrastructure, and Industrialization, emphasized the potential of the Fourth Industrial Revolution (4IR) to drive productivity enhancements and deliver services to all segments of society. He highlighted the Bank’s initiatives to nurture Africa’s human capital and startup ecosystem, including partnerships with tech giants.
Misako Takahashi from Japan’s Ministry of Foreign Affairs highlighted TICAD as a platform for collaborative innovation and discussions on the shared future of Japan and Africa.
Yacine Fal, the Special Representative of the African Development Bank’s President to the Africa Investment Forum, showcased the platform’s role in facilitating investment into various sectors in Africa. She mentioned the successful participation of Japanese investors and business leaders at the 2023 Market Days held last November in Marrakech.
Earlier in the day, Keizai Doyukai and the African Development Bank reiterated their commitment to strengthen business ties between Japan and African countries. They jointly organized the business forum to stimulate interest in African business and enhance understanding of the Japanese private sector ahead of TICAD9.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
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Media Contact:
Olufemi Terry
African Development Bank Group
media@afdb.org
About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF), and the Nigeria Trust Fund (NTF). With a presence in 34 African countries and an external office in Japan, the AfDB contributes to the economic and social development of its 54 regional member states. For more information: www.AfDB.org.