AfDB Chief Economist Tells Japan: Africa is the World’s Next Growth Frontier
Africa’s growing economic strength and vast investment potential took centre stage as a high-level delegation from the African Development Bank Group (AfDB) visited Yokohama, Japan, from 20–22 August 2025. The visit formed part of efforts to deepen partnerships with Japanese investors and financial institutions ahead of the Ninth Tokyo International Conference on African Development (TICAD9).
Speaking at the Economic Partnership in Indian Ocean–Africa Forum, Professor Kevin Chika Urama, AfDB’s Chief Economist, underscored Africa’s competitive advantages in a rapidly changing global economy. He highlighted the continent’s young and expanding labour force, abundant renewable energy resources, and largely untapped agricultural potential as key drivers of future growth.
“By 2050, Africa will be home to one-third of the global labour force, hold 45 percent of the world’s renewable energy potential, and boast an agricultural market worth over USD 1 trillion,” he said. “Smart investors invest in Africa.”
Professor Urama noted that Africa has maintained resilient growth averaging 4 percent over the past two decades despite global economic shocks, with more than 20 countries recording growth above 5 percent. He further pointed out that 15 of the world’s fastest-growing economies in 2025 are African.
The event was jointly organised by Nikkei Newspaper, Japan’s Ministry of Economy, Trade and Industry (METI), and the Ministry of Foreign Affairs (MOFA).
Professor Urama also participated in a High-Level Policy Dialogue on “Harnessing the Potential of Africa – Strengthening Partnerships between MDBs, Japan’s DFIs, and the Private Sector.” The dialogue coincided with the signing of a Memorandum of Understanding launching the sixth phase of the Enhanced Private Sector Assistance (EPSA6) agreement between the AfDB and Japan International Cooperation Agency (JICA). The EPSA VI phase aims to mobilise up to USD 5.5 billion over three years from 2026 to catalyse private investment for Africa’s sustainable development.
At a side event on debt management hosted by the International Monetary Fund (IMF) and Japan’s Ministry of Finance, Professor Urama presented the Bank’s ongoing public finance reform initiatives, including the Public Finance Management Academy, the Debt Management Forum for Africa (DeMFA), and the Africa Debt Managers Initiative Network (ADMIN).
He emphasised the need for discussions on debt to go beyond transparency and sustainability to include debt productivity, or the ability of governments to ensure that borrowed funds generate tangible economic returns.
The delegation, led by Dr Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth, also held a bilateral meeting with Mr Nobumitsu Hayashi, Governor of the Japan Bank for International Cooperation (JBIC), to explore collaboration in infrastructure development, climate finance, and private sector investment.
The TICAD9 Conference brought together delegates from 49 African countries, including 33 heads of state and government, as well as over 10,000 participants representing international organisations, the private sector, and civil society.
During the event, Japanese Prime Minister Shigeru Ishiba unveiled the “Economic Region Initiative of Indian Ocean–Africa”, aimed at boosting trade and investment ties between Africa, India, and the Middle East.
The conference’s emphasis on private sector–driven growth closely aligns with the AfDB’s Africa Investment Forum (AIF), which converts investment commitments into actionable projects.
Reflecting on the mission, Professor Urama said: “TICAD9 provided a strong platform to showcase Africa’s economic resilience, reinforce the Bank’s leadership on debt management and governance, and deepen partnerships with Japan and other global stakeholders.”
The visit reaffirmed Japan’s strategic role as a development partner in Africa’s ongoing transformation and highlighted growing international confidence in the continent’s economic trajectory.
