The Japanese government is preparing to raise $1.5 billion for “impact investing” to support African nations in cutting greenhouse gas emissions and advancing sustainable development. The initiative will be officially announced during the Tokyo International Conference on African Development (TICAD), taking place over three days in Yokohama.
Impact investing is a strategy that seeks to generate both financial returns and positive social or environmental outcomes. Japan’s plan is designed to help African countries meet the United Nations’ Sustainable Development Goals, with funding mobilised through cooperation between the Japan International Cooperation Agency (JICA) and private financial institutions.
Proposed investments include large-scale renewable energy projects, such as wind power generation to reduce emissions, as well as financing start-ups in sectors like healthcare to expand access to essential medical services. According to Japan’s foreign ministry, this approach creates a dual benefit by tackling pressing challenges in Africa while also opening opportunities for Japanese companies to gain profits from sustainable ventures.
