There is growing interest in Japan by the government, parliamentarians, mega companies and startups to invest more in Africa. As a delegation from the African Development Bank Group led by President Dr Akinwumi Adesina visited Japan to showcase the enormous investment opportunities there are on the continent, the Prime Minister of Japan Fumio Kishida was leading his country’s charge with a tour of four countries.
In Japan, Dr Adesina and his held a series of meetings with senior government officials including the Minister for Finance Shunichi Suzuki, Vice Minister for Finance Masato Kanda and the Director General in the Ministry of Finance Atsushi Mimura.
They met with the top leadership of global mega brands including Mitsui & Co., Ltd., Sumitomo Corporation, Mitsubishi Corporation and Toyota Tsusho Corporation, as well as Japan’s leading business community, the Keizai Doyukai that brings together approximately 1500 business executives.
The result of this high-level engagement could see Japan’s net Foreign Direct Investment to Africa rebounding to pre-Covid 19 levels when it amounted to $10 billion compared to $6 billion in 2021.
ROUNDTABLE DISCUSSIONS
During the visit, the Bank delegation held roundtable discussions with up to nine top Japanese companies and Venture Capital funds operating in Africa. The discussion focused on new technologies related to energy and decarbonization such as next-generation solar power, hydrogen/ammonia, and storage batteries as well as how Japanese technology and innovation can contribute to solving social issues in Africa. The roundtable featured a presentation by the Bank’s Vice President for Power, Energy, Climate Change and Green Growth Dr Kevin Kariuki.
Toshiba Energy Systems & Solutions Corporation has invested in generation of thermal and hydro power projects across 10 countries.
Hitachi Energy, another global technology leader with significant investments in generation of renewable power including hydrogen. It has a presence in more than 20 countries with main hubs in Cairo and Johannesburg.
Kawasaki Heavy Industries Ltd, a manufacturer of motorcycles, aerospace and defense equipment, robots, gas turbines and other industrial products.
Tsubame BHB Co., Ltd. is a startup company involved in the production of green ammonia fertilizer for small scale farmers in Africa.
NEC Corporation began operating in Africa in 1963 delivering technologies behind establishing national ID and biometric authentication systems in South Africa, laying telecommunication infrastructure such as the 6,200km submarine cable between Angola and Brazil.
The second session featured Japanese entrepreneurs and investors with interest in the agriculture sector. They were joined by venture capital companies to highlight the significant role startups play in the development in Africa.
Kepple Africa Ventures, launched in Africa in 2018, is the largest Japanese venture capital fund based in Nigeria and Kenya with more than 100 portfolio companies. It currently runs the $100M Verod-Kepple Africa Ventures fund, and it has also facilitated co-investment from the major Japanese companies (such as Toyota Tsusho Corporation, M3, and Yamaha) to 15 African startups.
Degas Limited is an AI startup, based in Japan and Ghana, directly financing over 15,000 smallholder farmers by providing agricultural inputs, agronomy knowledge and digitising value chains.
Uncovered Fund, established in 2019 in Tokyo, has invested in 26 African startup companies particularly those that provide financial services essential for daily life and economic activities, sales promotion of retail stores, logistics in distribution and supply and urban transportation. It is based in Egypt, Nigeria, Kenya and South Africa.
The roundtable discussions led to Japan-Africa Investment Ecosystem Co-Creation Forum which was co-organized by the Bank, Keizai Doyukai and the United Nations Development Program. Keizai Doyukai, a private, non-profit and nonpartisan organization that brings together approximately 1,500 top executives of some 1,000 corporations.
The Asia Africa Investment & Consulting (AAIC). It aims to invest in fast growing companies within the healthcare sector in Africa. Among other activities, it is investing and managing agribusiness in Rwanda via the Rwanda Nuts Company.
Sasakawa Africa Association activities go back 36 years to when it was established by Japanese Philanthropist Ryoichi Sasakawa, Nobel Laureate Dr Norman Borlaug and former US President Jimmy Carter.
The association focuses on agriculture and especially smallholder farmer development in 12 countries across sub-Saharan Africa. President Makoto Kitanaka spoke about the association’s increasing use of technology in the delivery of its services.
University of Tokyo is investing in startups, with more than 400 already up its sleeves. Wassha, one of the startups associated with the University of Tokyo has developed an electrical power service business to reach people in rural Tanzania who do not have access to electricity. Beneficiaries rent LED lanterns which are offered on a Pay As You Go system.
The University of Tokyo President Dr Teruo Fujii and Dr Adesina discussed ways their two institutions could collaborate including the possibility of establishing a joint Japan Africa Entrepreneurship program. This would bring together venture capital funds, establish joint businesses and establish a staff exchange program between the University of Tokyo and selected universities in Africa.
The two leaders also spoke about the possibility of collaboration between the University’s School of Pharmacology and the Rwanda-based African Pharmaceutical Technology Foundation.
Following a 5-day visit showcasing Africa’s enormous investment opportunities, the message was clear: The door and the road to Africa for Japanese investors is wide open!
