At the Africa Investment Forum 2025 in Rabat, Japan and the African Development Bank (AfDB) announced a significant scaling of their financial partnership, targeting billions in new private capital to integrate African economies into global value chains. The Enhanced Private Sector Assistance for Africa (EPSA) initiative is on track to meet a $5 billion target this year, with a sixth phase aiming for $5.5 billion from 2026-2028, alongside a new $1.5 billion impact investing fund.

Closing the Financing Gap with Tangible Projects

African Development Bank Group President Dr. Sidi Ould Tah emphasized the critical need for partnership and innovative financing to unlock Africa's immense potential. He cited concrete examples of the existing collaboration's success, including the Menengai Geothermal Plant in Kenya, developed with Toyota Tsusho and Fuji Electric, and NEC Corporation's Agricultural Growth Program in Côte d'Ivoire. "These are tangible demonstrations of what is possible when we combine Africa’s opportunities with Japan’s strengths and African Development Bank’s catalytic financing," Ould Tah stated.

"The continent is growing very fast, and the potential is immense. But unlocking this potential requires both partnership and innovative financing."
- Dr. Sidi Ould Tah, President, African Development Bank Group

Mechanisms for Mobilizing Capital and Mitigating Risk

The Japan-backed Fund for African Private Sector Assistance (FAPA) was highlighted as a key de-risking tool, having enabled an estimated $30 billion in cumulative transaction value. AfDB Vice President Hassatou N’sele noted that FAPA-backed projects have unlocked $500 million to $1 billion in investment potential. Japanese officials, including Minoru Hasegawa of the Ministry of Finance, stressed FAPA's role as a practical tool for Japanese companies considering African expansion.

High-level panels featured senior executives from Japan's largest financial institutions detailing their strategies. NEXI's Yuichiro Akita emphasized the growing role of political risk insurance, while MUFG's Raisa Béliard pointed to blended finance as essential for large-scale infrastructure projects. SMBC's Nisrin Abouelezz revealed that the bank has mobilized around $3 billion from Japanese investors into African instruments in just three to four years.

Focus on Value Chains, Policy, and Sustainable Growth

The discussions consistently linked finance to broader economic integration. Tatsushi Amano of the Japan Bank for International Cooperation (JBIC) stressed the need to integrate Africa into supply chains through high-value-added sectors, requiring infrastructure and technology. Ahmed Rashad Attout, AfDB Director of Financial Sector Development, issued a crucial caveat: "Without the rule of law, strong regulators and sound policy frameworks, there is no sustainable investment. Capital must move hand-in-hand with policy reform."

In closing, African Development Bank Vice President Solomon Quaynor framed the challenge, noting Africa needs at least $1.3 trillion annually to integrate into global value chains. Yasuo Takamura of Japan's Cabinet Secretariat reaffirmed the commitment to action, guided by the principles of African ownership and international partnership. The forum concluded with strong confidence that the deepened Japan-Africa partnership is poised to unlock greater private capital for the continent's next phase of growth.