Tokyo, Japan, – Efforts to unlock greater Japanese private sector investment in Africa took centre stage this week as the African Trade & Investment Development Insurance (ATIDI), Mitsubishi UFJ Financial Group (MUFG), and Nippon Export and Investment Insurance (NEXI) co-hosted a high-level side event during the Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama.
The event brought together senior government officials, investors, development finance institutions and private sector leaders, including top Japanese corporations, to explore practical strategies for mobilizing sustainable investment into Africa’s fast-growing markets.
Japanese companies are steadily expanding into Africa, tapping opportunities in infrastructure, telecommunications, manufacturing and energy. MUFG, Japan’s largest financial institution, has been active in financing landmark projects on the continent, while NEXI – Japan’s export credit agency – reinforced its Africa commitment in 2023 by joining ATIDI as a shareholder with a USD15.1 million capital injection.
Under the theme “Unlocking Japanese Private Sector Investment in Africa”, the event featured two sessions showcasing lessons from Japanese ventures in Africa and charting pathways for new investment flows.
A highlight was Ethiopia’s telecom liberalization and the launch of Safaricom Telecommunications Ethiopia Plc (STE), the country’s largest-ever foreign direct investment and one of Japan’s most significant-backed projects in Africa. ATIDI enabled the deal by providing a 10-year political risk insurance policy to Sumitomo Corporation, covering risks such as expropriation, currency inconvertibility and breach of contract, with NEXI offering reinsurance support.
“Unlocking Africa’s vast potential requires bold partnerships and innovative risk solutions. By mitigating risk and building investor confidence, we are paving the way for a new era of Japanese private sector engagement,” said Manuel Moses, CEO of ATIDI.
NEXI Chairman and CEO Atsuo Kuroda emphasized Japan’s long-term partnership with Africa, pointing to initiatives such as its investment in ATIDI, reinsurance for the Ethiopia project, and tailored services like the Japan Desk. “We will continue to engage in public-private partnerships to support Africa’s further development,” he said.
The second session spotlighted institutional and private capital mobilization from Japan to Africa. Speakers highlighted the role of de-risking mechanisms, blended finance and public-private partnerships in driving investments in infrastructure, clean energy and digital transformation.
“As part of our commitment to sustainable development in Africa, we are proud to collaborate with ATIDI and NEXI. This initiative supports TICAD9’s vision of quality infrastructure, energy transition and stronger public-private partnerships,” said Ankit Khandelwal, MUFG’s Head of Africa for sovereigns, DFIs and blended finance.
On the sidelines of TICAD9, ATIDI and MUFG signed a Memorandum of Understanding (MoU) to expand collaboration on innovative risk mitigation tools for Japanese investors. The deal will see MUFG channel liquidity into African markets while ATIDI provides insurance and guarantees to unlock capital.
ATIDI currently supports transactions worth over USD5.4 billion through 72 policies across Africa, while MUFG’s financing exposures on the continent total approximately USD1.86 billion.
With TICAD9 held under the banner “Co-create Innovative Solutions with Africa”, the side event underscored Japan’s growing role as a strategic partner in Africa’s economic transformation.
Through innovation, risk-sharing, and public-private partnerships, ATIDI, MUFG and NEXI pledged to help turn Africa’s immense potential into lasting prosperity – building resilience, driving growth, and deepening ties between Tokyo and the continent.
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