Japan Seeks Opportunities in Africa's Infrastructure Deficit: Citi

Africa's infrastructure deficit is seen as a key opportunity for Japan, with Citi's CEO for Sub-Saharan Africa noting that Japan's public and private sectors are eager to make a social impact and access the continent's resources and growing population, while also seeking a financial return.

The Tokyo International Conference on African Development (TICAD 9) held in Yokohama, Japan, marked a significant shift in Japan's approach to Africa, with a greater emphasis on trade and private sector investment. Traditionally, Japan's engagement with Africa has been characterized by official development assistance (ODA), but this year's summit saw a notable decline in aid pledges and a stronger focus on private sector solutions [1].

The acting administrator of the UN Development Programme, Haoliang Xu, highlighted the shift in focus, stating that ODA is not the sole solution and that collaboration with the private sector is crucial. Ankit Khandelwal, head of Africa for sovereigns, development finance institutions, and blended finance at Mitsubishi UFJ Financial Group (MUFG), echoed this sentiment, noting that the two key themes of TICAD 9 were supporting the private sector and fostering regional connectivity [1].

One of the most notable announcements was a plan to provide $5.5 billion in loans through the African Development Bank to support infrastructure development and other priorities. This initiative underscores Japan's commitment to addressing Africa's infrastructure deficit, which is seen as a key opportunity for both social impact and financial return [1].

Japanese financial institutions played a prominent role at TICAD 9. MUFG signed three memorandums of understanding (MoUs) with the African Trade & Investment Development Insurance, Africa Finance Corporation, and Turkish energy company Çalık Enerji. Additionally, Japanese Prime Minister Shigeru Ishiba launched the "Economic Region Initiative," aimed at fostering trade and investment across the "Indian Ocean-Africa" region [1].

DP World, a global logistics company, also signed a memorandum of understanding with Itochu Corporation, one of Japan's largest trading companies, to expand logistics, supply chain infrastructure, and distribution capabilities in sub-Saharan Africa. This collaboration is expected to enhance connectivity and market access, supporting Japanese businesses seeking to establish or grow their presence on the continent [2].

The partnership between DP World and Itochu Corporation reflects the growing recognition that Africa represents a dynamic growth frontier for global trade. By combining DP World's infrastructure and logistics expertise with Itochu's commercial experience, the two companies aim to create deeper connections between Africa and Japan [2].

In conclusion, TICAD 9 marked a significant shift in Japan's approach to Africa, with a stronger focus on trade and private sector investment. This shift is driven by a desire to make a social impact, access the continent's resources, and achieve financial returns. The initiatives announced at the summit, such as the $5.5 billion loan plan and the partnerships between Japanese financial institutions and African organizations, demonstrate Japan's commitment to addressing Africa's infrastructure deficit and fostering economic growth.

References:
[1] https://african.business/2025/08/trade-investment/ticad-9-japan-shifts-from-aid-to-trade-as-private-sector-prioritised
[2] https://www.zawya.com/en/business/transport-and-logistics/dp-world-itochu-to-strengthen-logistics-trade-in-sub-saharan-africa-k14e7z5x