Africa and Japan deepen partnership on energy technology

A plenary session at the Africa Investment Forum 2024 Market Days, highlighted the role of Japanese technology and innovation in Africa’s agricultural and energy revolution.

African Development Bank president Dr Akinwumi Adesina addressed Africa’s agricultural and energy transition during a plenary session at the Africa Investment Forum 2024 Market Days, highlighting the deepening Japan-Africa partnership.

He spoke on 9 December as part of two panel discussions on Africa’s agriculture and energy transition, that brought together 100 Japanese investors, showcased how digital solutions, innovative technologies and business models are transforming Africa’s business landscape.

With the global food and agricultural market in Africa projected to reach $1tn by 2030, the continent presents unprecedented opportunities for investment and innovation.

How is agriculture becoming digitalised?

AAIC Partners Africa Limited, shared their success story in Rwanda and Tanzania, where they’ve implemented smart agriculture projects covering 1,700 hectares.

Their work demonstrates how Japanese technology can transform large-scale agricultural operations in Africa through IoT solutions and satellite technology optimisation.

Additionally, VunaPay’s COO, Koya Matsuno, addressed one of agriculture’s most pressing challenges through their digital platform that enables instant payments to farmers upon produce delivery.

“Imagine working hard for a month and your boss tells you that you’re not going to get paid for another six months,” Matsuno illustrated, highlighting how their solution is transforming agricultural finance.

Strategic Partnership Framework

The Japan International Cooperation Agency (JICA), represented by Jin Wakabayashi, Deputy Director General for Private Sector Investment Finance, outlined their comprehensive support for agricultural development, emphasising three key pillars for the private finance window which includes climate-resilient agriculture, food security enhancement and financial inclusion facilitation.

The African Development Bank’s Director of Private Sector Operations, Richard Ofori-Mante, highlighted successful collaborations with Japanese institutions, including a $600m of the Enhanced Private Sector Assistance for Africa (EPSA) facility with JICA and ongoing partnerships with major Japanese corporations like Mitsubishi.

“What I see here is what Executive Director Nomoto and I envisioned,” reflected Dr. Adesina, describing the creation of a comprehensive ecosystem supporting Japanese investment in African agriculture.

This ecosystem spans agricultural technology and innovation, infrastructure development, financial services, private equity and venture capital and government support mechanisms.

Japan’s long-term Commitment To Africa

Daiho Fujii, Deputy Vice Minister of Finance of Japan, underscored Japan’s long-standing commitment to African development, dating back to the country’s first participation in the African Development Fund in 1973.

He highlighted Japan’s pioneering role in private sector mobilisation, notably through the establishment of the EPSA at the Bank in 2006, which has provided around $9bn to date.

Fujii stated: “Africa undoubtedly has huge potential to attain high growth, create jobs and build a solid economic structure for future generations”.

The deputy Vice minister further stressed that “it is time for us to co-create innovative solutions together with Africa,” highlighting how Japanese solutions and innovative business models presented during the session could be “real game-changers” in addressing the continent’s challenges and unleashing its potential.