Japan and AfDB Strengthen Partnership to Unlock Private Investment in Africa
Japan and the African Development Bank (AfDB) have reaffirmed their commitment to boosting private investment across Africa, unveiling expanded financing initiatives during the Africa Investment Forum (AIF) 2025 Market Days held in Rabat, Morocco.
At a high-level Japan Special Room event on the sidelines of the Forum, policymakers, financial institutions, startups and development partners explored ways to mobilise private capital and integrate African economies into global value chains. Central to the discussions was the Enhanced Private Sector Assistance for Africa (EPSA) initiative, a long-standing Japan–Africa financing partnership.
Addressing participants, AfDB Group President Dr Sidi Ould Tah emphasised the importance of innovative financing in closing Africa’s development gap.
“Africa’s growth potential is immense, but unlocking it requires strong partnerships and catalytic financing,” he said, pointing to flagship projects such as Kenya’s Menengai Geothermal Plant and Côte d’Ivoire’s Agricultural Growth Programme, both supported by Japanese firms and AfDB financing.
The EPSA initiative, now in its fifth phase, is on track to reach its $5 billion target by 2025, according to Shigeo Honzu, Deputy Director General of the Japan International Cooperation Agency (JICA). He added that EPSA 6 aims to mobilise $5.5 billion between 2026 and 2028, alongside a new $1.5 billion Impact Investing for Development of Emerging Africa programme launched under TICAD 9.
Japan’s Fund for African Private Sector Assistance (FAPA) has also played a critical role in de-risking investments. AfDB Vice President and Chief Financial Officer Hassatou N’sele said FAPA-supported projects have enabled an estimated $30 billion in cumulative transaction value, while directly supporting more than 200 enterprises and training 15,000 people.
Officials from Japan’s Ministry of Finance and major financial institutions underscored Japan’s continued commitment to Africa. Minoru Hasegawa of the Ministry of Finance described FAPA as a “practical and powerful tool” for Japanese companies seeking to expand into African markets.
Panel discussions highlighted the growing use of blended finance, export credit and political risk insurance to support large-scale projects in infrastructure, agriculture and critical minerals. Executives from MUFG, SMBC, NEXI, JBIC and Mizuho Bank shared experiences mobilising billions of dollars through innovative financing structures.
Senior AfDB officials stressed that finance must be accompanied by strong institutions and sound policies. Ahmed Rashad Attout, Director of Financial Sector Development at the Bank, warned that sustainable investment depends on the rule of law, effective regulation and policy reform.
Closing the session, Yasuo Takamura of Japan’s Cabinet Secretariat said the discussions reaffirmed Japan’s commitment to Africa’s development, guided by TICAD’s principles of African ownership, international partnership and openness.
Participants agreed that the strengthened Japan–AfDB partnership is well positioned to unlock greater private capital, deepen Africa’s integration into global value chains and support the continent’s next phase of sustainable growth.
