This archive report was first published on 30 August 2019.
On the eve of the 7th Tokyo International Conference on African Development (TICAD 7), Japan's interest in Africa has been gaining momentum. The country's efforts to counter China's growing influence on the continent date back, but recent initiatives aim to establish a stronger foothold in Africa.
Japan's approach has shifted from relying on official development assistance to leveraging private sector investments. This includes partnerships with African startups, infrastructure projects, and scholarships. The country is also encouraging companies to partner with African startups to raise its profile in the continent.
Some of Japan's state-driven initiatives include the Enhanced Private Sector Assistance (EPSA) initiative, a co-financing scheme between the African Development Bank (AfDB) and the Japan International Cooperation Agency (JICA). EPSA provides lending initiatives, credit lines, and technical assistance to African companies and governments.
Japan is also making advances in digital and Fintech to rope in customers without formal access to finance. The country is planning partnerships with startups such as Kenya's Bitpesa and Ethiopia's Deliver Addis. Japanese company Itochu will also start producing apparel in Ethiopia in support of the country's textile industry.
However, Japan still has a long way to go to catch up with China's investment in Africa. According to reports, Japan's investment in Africa stood at $9 billion by 2017, compared to China's $43 billion at the same time. Japan's exports to Africa also lag behind China's, with a mere fraction of China's excess of $100 billion in 2018.
