eBusiness Weekly
Business Writer
African Development Bank (AfDB) president Dr Akinwumi Adesina has called for a significant increase in Japanese investment in Africa, saying the continent is the world’s “best investment destination now and in the future.”
Dr Adesina is leading a bank delegation on a five-day visit to Japan during which he will meet senior government officials, large Japanese companies, development partners and members of the African diplomatic corps in the country.
Delivering a lecture at the Japan-Africa Investment Ecosystem Co-Creation Forum in the capital, Tokyo, Dr Adesina said Africa offers enormous investment opportunities and gave examples of Japanese companies that have been running profitable businesses on the continent for many years.
The forum was organized by Keizai Doyukai, a private, non-profit and nonpartisan organization that brings together nearly 1 400 top executives of some 1 000 corporations.
Dr Adesina pointed out that Japan’s foreign direct investment in Africa declined from US$10 billion in 2016 to just US$4,7 billion in 2020 during Covid-19 but recovered to $6 billion in 2021. Africa accounts for only 0.003 percent of Japan’s US$2 trillion global foreign direct investments.
In terms of trade, the volume of exports and imports between Africa and Japan remains lower than 2 percent.
Dr. Adesina said there was every reason to change the trend.
He mentioned the state-owned Japan Bank for International Cooperation (JBIC), which, together with Total and other investors, including the African Development Bank, co-financed the US$24 billion Liquified Natural Gas project in Mozambique—which will make it the third largest in the world.
Japan will buy 30 percent of its production.
JBIC and Mizuho Bank, along with the African Development Bank and nine other financial institutions, invested US$2,7 billion to build the Nacala corridor railway and port in Mozambique.
Dr Adesina cited Japanese multinationals such as Toyota Tsusho, Mitsubishi Corporation, Hitachi and Komatsu, whose businesses make billions of dollars in profit every year.
“These companies will tell you investing in Africa pay,” said Dr Adesina, “there is now a greater pulse and excitement for more Japanese investments in Africa.”
The AfDB chief said the successes of large Japanese companies operating in Africa are spurring a new generation of young Japanese to turn their eyes to venture capital and private equity funds to support small- and medium-sized enterprises.
