In an effort to deepen economic ties between Japan and Africa, the African Trade & Investment Development Insurance (ATIDI), Mitsubishi UFJ Financial Group (MUFG), and Nippon Export and Investment Insurance (NEXI) co-hosted a high-level side event on the margins of the Ninth Tokyo International Conference on African Development (TICAD9), taking place in Yokohama, Japan.
The event brought together senior government officials, investors, development finance institutions and private sector stakeholders, including leading Japanese companies, to explore actionable strategies for mobilising more sustainable Japanese investment into Africa.
Japanese companies have been increasingly exploring Africa’s high-growth markets across sectors such as infrastructure, telecommunications, manufacturing and energy.
MUFG, as Japan’s largest financial institution, has taken a strategic interest in Africa, participating in major infrastructure financings and supporting Japanese clients expanding into the region.
NEXI, Japan’s official export credit agency, became a shareholder of ATIDI in 2023, contributing USD15.1 million to ATIDI’s capital base, reinforcing its long-term commitment to de-risking Japanese investments in Africa.
Under the theme “Unlocking Japanese Private Sector Investment in Africa”, the event featured two high-impact sessions. The first highlighted lessons learned from Japanese investments in Africa to date and discussed opportunities for more direct Japanese investment in Africa, with a focus on the landmark liberalisation of Ethiopia’s telecom sector.
The session showcased the launch of Safaricom Telecommunications Ethiopia Plc (STE), a major investment that stands as the single largest FDI in Ethiopia and one of the most significant Japanese-backed projects on the continent.
Through this flagship project the session shared insights into how foreign direct investment (FDI) plays a catalytic role in advancing large-scale infrastructure projects in Africa.
“Unlocking Africa’s vast potential requires bold partnerships and innovative risk solutions. This collaboration with MUFG and NEXI demonstrates how strategic alliances can drive transformational investment,” said Manuel Moses, Chief Executive Officer of ATIDI.
“By mitigating risk and building investor confidence, we are not only enabling landmark projects like Safaricom Ethiopia but also paving the way for a new era of Japanese private sector engagement across the continent.”
ATIDI played a pivotal role in enabling this milestone by issuing a 10-year Political Risk Insurance (PRI) policy to Sumitomo Corporation, a key Japanese investor in the STE consortium.
The policy covers key political risks such as expropriation, currency inconvertibility and breach of contract, backed by NEXI’s reinsurance support.
This innovative risk solution exemplifies the growing synergy between ATIDI and NEXI in empowering Japanese companies to seize high-potential opportunities in Africa with greater confidence.
“Our collaboration with partners including ATIDI and MUFG has enabled us to provide diverse support for Japanese companies’ businesses with Africa,” said Atsuo Kuroda, Chairman and CEO of NEXI.
“We have been working closely with ATIDI which led to our reinsurance support for the remarkable telecommunications project in Ethiopia, our investment to ATIDI, and services tailored to Japanese companies such as the Japan Desk.
“NEXI has also strengthened our partnership with financial institutions in Japan to support Africa at times of an unexpected crisis, as was Covid-19. We are pleased to share our experiences in the event and will continue to engage in public-private partnerships to support Africa’s further development.”
The second session shifted the focus to unlocking institutional and private capital from Japan to power Africa’s development agenda.
Speakers delved into how de-risking mechanisms, blended finance models and public-private partnerships can drive large-scale investment in sectors such as infrastructure, energy and digital transformation.
MUFG shared its experience in structuring cross-border investments, while ATIDI showcased its expanding range of risk mitigation instruments tailored to the needs of investors across the continent.
“As part of our continued commitment to fostering sustainable development across Africa and unlocking new investment opportunities for Japanese corporate clients, we are proud to collaborate with ATIDI and NEXI on this pivotal event.
“Together, we aim to explore practical pathways for increasing Japanese private sector engagement on the continent,” said Ankit Khandelwal, Director and Head of Africa for sovereigns, development finance institutions (DFIs) and blended finance, MUFG.
“This initiative supports the objectives of TICAD 9, with a shared focus on advancing quality infrastructure, driving the energy transition, and enhancing public-private partnerships.”
Since joining ATIDI, NEXI has worked to expand its support for Japanese firms operating in African markets, with a growing pipeline of co-insured projects.
In the photo: Mr Atsuo Kuroda, Chairman and CEO of NEXI and Mr Manuel Moses, Chief Executive Officer of ATIDI, signing a memorandum of understanding.
