AfDB Seeks Partnership with Japanese Firms to Boost Economic Transformation in Africa

Quaynor, Vice President for Private Sector, Infrastructure & Industrialization at the AfDB, emphasized the alignment of priorities between the Bank and Japanese firms.

Leaders from the African Development Bank (AfDB) have engaged in strategic discussions with major Japanese trading houses in Tokyo, aiming to forge partnerships that advance Africa's economic transformation agenda.

Led by Vice Presidents Kevin Kariuki, Solomon Quaynor, and Kevin Urama, the AfDB delegation met executives from prominent firms including ITOCHU Corporation, Marubeni Corporation, Mitsubishi Corporation, Mitsui & Co., Ltd., Sumitomo Corporation, and Toyota Tsusho Corporation on June 19.

Quaynor, Vice President for Private Sector, Infrastructure & Industrialization at the AfDB, emphasized the alignment of priorities between the Bank and Japanese firms. "This mission aims to engage Japanese partners who can drive the transformation of African economies," he stated.

Urama, Chief Economist and Vice President for Economic Governance and Knowledge Management at AfDB, highlighted Africa's focus on enhancing productivity in sectors like agriculture and reducing reliance on raw material exports. He stressed the Bank's role in leveraging private investment to de-risk and catalyze economic growth.

Discussions with Mitsubishi Corporation focused on investments in off-grid energy solutions through Bboxx, clean energy start-ups in Africa, and initiatives like electric motorcycle ride-sharing in East Africa. Mitsubishi also expressed interest in expanding the liquefied petroleum gas (LPG) sector across Africa.

Sumitomo Corporation explored opportunities in regional value chains and industrialization across Africa, particularly in power, infrastructure, and extractive sectors. The company is keen on engineering, procurement, and construction (EPC) contracts and sought insights into Mozambique's business environment.

ITOCHU Corporation presented its initiatives in green ammonia for marine fuel and fertilizer production, targeting South Africa and potentially scaling to 500 million tons by 2050. Toyota Tsusho discussed plans for electric mobility solutions in Africa, including pilot projects and addressing infrastructure challenges in markets like Abidjan, Côte d'Ivoire.

Additionally, Toyota Tsusho highlighted its role in the Menengai Geothermal Power Plant Project in Kenya, supported by a $29.5 million funding from AfDB, aimed at enhancing clean energy supply.

Bank leaders underscored the role of AfDB-managed funds such as the Fund for African Private Sector Assistance (FAPA) and the Sustainable Energy Fund for Africa (SEFA) in catalyzing private sector investments. FAPA provides grants for capacity building, while SEFA offers finance to unlock renewable energy investments.

Japanese trading houses, known as sōgō shōsha, are renowned for their diverse business portfolios, spanning trading, logistics, and international resource exploration. Their expertise positions them as crucial partners for AfDB in driving economic development and value addition across Africa.

As Africa emerges as a significant growth market, AfDB aims to collaborate closely with Japanese firms to capitalize on emerging opportunities while promoting sustainable development on the continent.