Africa's appeal as a prime investment hub lies in its rapidly growing labour force, vast renewable energy resources, and largely untapped agricultural sector. This was one of the key messages delivered to Japanese businesses by an African Development Bank Group delegation that visited Yokohama, Japan's second largest city, from August 20-22, 2025.
Speaking at an 'Economic Partnership in Indian Ocean-Africa' Forum, Prof. Kevin Chika Urama said that by 2050 the continent would be home to one third of the global labour force, while holding 45% of the world's renewable energy potential, and an agricultural market with a value exceeding USD 1 trillion.
Prof. Urama highlighted Africa's resilient growth performance, averaging 4% over two decades despite global shocks, with over 20 countries exceeding 5%. "Smart investors invest in Africa," he said, noting that 15 of the world's fastest-growing economies in 2025 will be African.
The event was organised by Nikkei Newspaper, Japan's Ministry of Economy, Trade and Industry (METI), and Ministry of Foreign Affairs (MOFA).
The chief economist also took part in a High-Level Policy Dialogue on "Harnessing the Potential of Africa - Strengthening Partnerships between MDBs, Japan's DFIs, and Private Sector." The event featured the signing of a Memorandum of Understanding launching the sixth phase of the Enhanced Private Sector Assistance (EPSA6) agreement between the Bank and JICA, with the goal of mobilising additional private capital for Africa's sustainable growth. The EPSA VI agreement has a joint financing target of up to $5.5 billion, over a period of three years starting from 2026.
At a side event on debt management hosted by the International Monetary Fund (IMF) and Japan's Ministry of Finance, Urama delivered a presentation on the Bank's key public finance reform initiatives, including the Public Finance Management Academy, the Debt Management Forum for Africa (DeMFA), and the Africa Debt Managers Initiative Network (ADMIN).
He stressed the need for the conversation around debt to extend beyond debt transparency and sustainability, to cover debt productivity - the capacity of governments to ensure that borrowed funds are able generate sufficient returns.
Additionally, Prof Urama participated in a bilateral meeting with Mr Nobumitsu Hayashi, Governor of the Japan Bank for International Cooperation (JBIC), to discuss infrastructure, climate finance, and private sector collaboration.
The Bank Group delegation to Japan, led by Dr Kevin Kariuki, Vice President for Power, Energy, Climate & Green Growth, was in the country to attend the Ninth Tokyo International Conference on African Development (TICAD9). This edition of the triennial TICAD brought together delegations from 49 African countries - including 33 heads of state and government - along with more than 10,000 participants from international organizations, the private sector, and civil society.
During the Conference, Japanese Prime Minister Shigeru Ishiba announced the "Economic Region Initiative of Indian Ocean-Africa", designed to enhance trade and investment links between Africa, India, and the Middle East.
The conference's focus on private sector-led growth aligns closely with the Bank's Africa Investment Forum (AIF), which serves as a complementary platform to turn commitments into bankable projects. The strong political will, launch of new initiatives, and the EPSA VI agreement all underscore Japan's strategic role as a partner in Africa's transformation.
Reflecting on the mission to Japan, Prof Urama said, "TICAD9 provided a strong platform to showcase Africa's economic resilience, reinforce the Bank's leadership on debt management and governance, and deepen partnerships with Japan and other stakeholders."
