Japan Announces $1.5 Billion Impact Investment in Africa
Japan has announced the mobilization of $1.5 billion in impact investments in favor of Africa, a decision that is expected to be officially confirmed during the 9th Tokyo International Conference on African Development (TICAD-9), scheduled to take place from August 20 to 22 in Yokohama.
According to public broadcaster NHK, this envelope will be implemented with the support of the Japan International Cooperation Agency (JICA) and private financial partners. The targeted projects include large-scale wind energy production to reduce greenhouse gas emissions and financing startups in the health sector to improve access to care.
Impact investing, a concept defined by the Global Impact Investing Network (GIIN), aims to generate both measurable social and environmental impact and financial returns. This approach is based on two principles: intentionality, which requires defining a clear development goal before investing, and additionality, which means that the investment would not have taken place without the investor's intervention.
In Africa, Tokyo is adopting a different strategy than China, whose influence is based on massive loans for infrastructure projects. Japan is instead focusing on sustainable projects related to health, education, and renewable energy, seeking to position itself as a long-term partner.
With this plan, Japan aims not only to respond to the pressing needs of the continent but also to open up opportunities for its businesses, in a "win-win" cooperation logic.
