Japan and the African Development Bank have launched a $1.5 billion (Sh193.5 billion) impact investing facility to support green growth, financial inclusion, food security, and healthcare across Africa. The initiative, called ‘Impact Investing for Development of Emerging Africa,’ was unveiled during the Africa Investment Forum 2025 Market Days in Rabat and is part of Japan’s expanded engagement with Africa under the Enhanced Private Sector Assistance for Africa framework. It aims to attract private investors alongside development finance institutions.
AfDB Group President Sidi Ould Tah emphasized the importance of the Japan–Africa partnership in bridging Africa’s financing gap. He highlighted the continent’s fast growth and immense potential, noting that unlocking this potential requires both collaboration and innovative financing approaches. He cited successful blended-finance projects, such as Kenya’s Menengai Geothermal Plant and Côte d’Ivoire’s Agricultural Growth Program, as examples of effective partnership-driven development.
The $1.5 billion facility complements the ongoing EPSA programme, currently in its fifth phase and on track to reach a $5 billion target by 2025. Japan International Cooperation Agency Deputy Director General Shigeo Honzu noted that the upcoming EPSA 6 phase, covering 2026 to 2028, aims to scale commitments further to $5.5 billion, reinforcing Japan’s focus on private sector-led growth across Africa.
Japan’s Fund for African Private Sector Assistance continues to play a key role in de-risking projects and unlocking commercial financing. AfDB Vice President for Finance Hassatou N’sele highlighted that FAPA-backed interventions have supported an estimated $30 billion in cumulative transaction value, assisted over 200 businesses, and trained approximately 15,000 people.
A high-level panel at the forum also discussed how co-financing, blended finance, and credit enhancement can accelerate Africa’s integration into global value chains, particularly in infrastructure, critical minerals, and agriculture. Executives from major Japanese financial institutions emphasized the role of political risk insurance, export credit, and climate-focused blended finance platforms in mobilizing billions of dollars for African projects.
While investment optimism was high, AfDB officials stressed that financing alone is not sufficient. Strong institutions, sound regulation, and policy reforms are essential to ensure sustainable transformation and lasting impact across the continent.
