The African Development Bank is looking to partner with Japanese firms to advance its strategic priorities of value addition to raw materials and increasing productivity in key sectors across Africa, Bank leaders said during meetings with several major trading houses in Tokyo.
The Bank's delegation, led by Vice President Kevin Kariuki, Vice President Solomon Quaynor and Vice President Kevin Urama, held discussions with executives from, in alphabetical order, ITOCHU Corporation, Marubeni Corporation, Mitsubishi Corporation, Mitsui & Co., Ltd., Sumitomo Corporation and Toyota Tsusho Corporation, among others, on 19 June.
This mission is about engaging Japanese firms that can be our partners in driving the transformation of African economies, Quaynor, Bank Group Vice President for Private Sector, Infrastructure & Industrialization, said. We see significant alignment in our priorities and seek to harness the technologies and know-how of Japanese companies in delivering development impact.
Urama, Chief Economist and Vice President for Economic Governance and Knowledge Management, said, African governments are looking to enhance productivity in a number of sectors, particularly agriculture. He added, there is a clear policy shift away from exporting raw materials. The Bank is seeking to scale up its role in de-risking and catalysing private investment, as Oversea Development Assistance and public resources alone will not suffice.
The Mitsubishi delegation highlighted investments in off-grid decentralised energy solutions through Bboxx, an Africa-focused clean energy start-up which the Bank Group supported with initial financing, as well as partnerships to develop electric motorcycle ride-sharing in East Africa. The Japanese conglomerate also expressed interest in working with the Bank to scale up the liquefied petroleum gas (LPG) sector across the continent to increase access to clean cooking fuel.
Sumitomo Corporation executives discussed the challenges and opportunities in developing regional value chains and industrialization in Africa. The company is actively exploring projects in power, infrastructure, and the extractive sectors, with a focus on engineering, procurement, and construction (EPC) contracts. Sumitomo representatives also inquired about the macroeconomic outlook and business environment in Mozambique, where the Bank is supporting the government's reform efforts.
Itochu Corporation presented its exploration into green ammonia as a promising fuel and an ingredient in fertilizer production. The company is working to develop the full value chain for ammonia as a marine fuel, including engine development, bunkering infrastructure, and green ammonia production projects, in locations like South Africa. By 2050, ammonia could account for up to 500 million tons of marine fuel if fully adopted.
Toyota Tsusho shared its plans to introduce electric mobility solutions in Africa, starting with pilot projects in select countries, to test consumer acceptance. In its early efforts in EV sales on the continent, the trading house identified consumer concerns over charging infrastructure as a major barrier to market expansion. To address this, it is now exploring a pilot business model for developing EV charging infrastructure in Abidjan, Côte d'Ivoire.
Toyota Tsusho is also constructing the 35 MW Menengai Geothermal Power Plant Project in Kenya, for which the African Development Bank provided $29.5 million in funding. The project aims to increase the supply of clean energy while reducing reliance on expensive fossil fuel-based generation.
Bank leaders also highlighted the role of two Bank-managed funds, the Fund for African Private Sector Assistance (FAPA) and the Sustainable Energy Fund for Africa (SEFA) in catalysing private investment in the key sectors under discussion. FAPA provides grants for technical assistance and capacity building to governments, NGOs, and private enterprises, while SEFA, a multi-donor Special Fund, offers catalytic finance to unlock private sector investment in renewable energy and energy efficiency.
Japanese trading houses, or sōgō shōsha, are known for their diverse business lines, engaging in trading, logistics, plant development, international resource exploration, and other services across a wide range of products and materials. This unique feature positions them as valuable partners for the Bank in its efforts to drive economic development and value addition across multiple sectors in Africa.
With Africa poised to become the world's next great growth market, the African Development Bank Group is positioning itself as the partner of choice for investors looking to seize emerging opportunities while fostering sustainable development on the continent.
