Engaging with 54 nations—JBIC’s co-creation strategy

Grasping Africa’s needs from Europe and visits on the ground

“I think it is important to understand Africa not as a continent but as a set of 54 countries,” says AMANO Tatsushi, JBIC’s senior executive managing officer.

Because it is also geographically distant from Japan, taking an average of over 20 hours by plane to reach, he points out, “People tend to view it as a single entity called ‘Africa’.” In reality, the situation differs greatly from country to country, making tailored responses essential. “The core principle guiding us in dialogue with a country’s government is listening carefully to understand their true needs,” he explains.

However, JBIC's ultimate mission is to support the overseas expansion of Japanese companies. One of its core roles is identifying where the needs of Africa and Japanese corporate aims converge.

To fulfill this role, JBIC covers all 54 African countries through two representative offices working in close cooperation with the Japan head office. Historically, many African countries maintain strong ties with their former colonial rulers. JBIC’s Paris office mainly handles French-speaking countries, while the London office is mainly responsible for English-speaking ones.

Even though Europe is much closer to Africa than Japan, travelling anywhere on the continent still takes considerable time, raising the question of establishing a representative office there.

“Of course, that could happen in the future,” says AMANO. “For example, we could divide Africa into north, south, east, and west regions, with a base established in each of these four regions. East Africa has economic centers such as Kenya and Tanzania, and West Africa has rapidly growing countries like Ghana and Côte d'Ivoire, while the south is resource rich with South Africa at its center, and the north, including Morocco and Egypt, is culturally connected to the Middle Eastern sphere.” But, he adds, “That option doesn’t seem to be on the table at the moment.”

AMANO explains the difficulty of categorizing Africa into regions. “Looking at West Africa for example, countries such as Côte d'Ivoire, Benin, and Senegal are riding a growth trajectory while receiving Western financing. On the other hand, countries such as Mali and Niger, which are not on good terms with France, are pivoting toward closer ties with Russia and China. It is not a cohesive group.”

Alongside this diversity, historical ties with Europe are impossible to ignore. The former colonial powers of France and the UK have many companies involved in business related to Africa. New trends in Africa are also easier to spot from Europe. AMANO also mentions the travel situation.

“Europe is often more convenient. There are few direct flights between African nations, so it’s not unusual to end up flying via Europe. Inter-country connectivity is still very weak.”

AMANO believes that JBIC’s current approach of maintaining a bird’s-eye view of the situation from Europe and making site visits when necessary, makes sense for now.

Room to develop Africa’s rich natural resources, as unicorn startups also emerge

As global head of the Energy and Natural Resources Finance Group, AMANO oversees the Energy Solutions Finance Department (covering energy sources such as oil and natural gas); the Mining and Metals Finance Department, (handling key minerals such as copper and lithium); and the Energy Transformation Strategy Office (focusing on next generation energy sources, including hydrogen and ammonia).

All are deeply related to business in Africa. In energy, a Japanese trading company has significant interests in Mozambique's liquefied natural gas (LNG) business, with JBIC involved in financing natural gas field development.

In the mineral resources sector, countries such as the Democratic Republic of the Congo have abundant resources such as cobalt for lithium-ion batteries, and tantalum for semiconductor manufacturing. In hydrogen, ambitious initiatives are underway in countries such as South Africa and Namibia, where JBIC is also working on projects.

AMANO is especially focused on the rise of African startups. It has the fastest startup growth rate of any continent, with unicorns (unlisted companies valued at USD1 billion or more) emerging one after another. The explosive spread of smartphones, which bypassed the landline phase, has fueled a boom in mobile tech services, especially payment solutions in the fintech sector.

E-commerce is flourishing in Nigeria and Senegal, while online financial services are spreading in Kenya. Japanese funds are beginning to invest in these startups, creating a new business ecosystem.

In the finance realm, French banks are pulling back from Africa, creating opportunities for local financial institutions, while pan-African players covering the entire continent are also emerging.

“They not only function as simple financial intermediaries, but also generate projects themselves. We need to carefully monitor the situation, along with trends in funds for startups, to understand how to engage with these institutions.”

In an age when one in four people will be African, Japan’s strengths can help solve agricultural challenges

Interest in Africa’s potential as a consumer market is also growing, driven by rapid population growth. According to UN estimates, a quarter of the global population will be African by 2050, and a third by 2100.

“Nigeria—already with a population exceeding 200 million—embodies this, leading to many companies now eyeing its potential as a consumer market.”

Other countries, such as Ethiopia and Egypt, have populations surpassing the 100 million-mark, with more set to join them. Yet there are few high value-added businesses, and economic growth is lagging behind population growth. Development of these frontier markets is a challenge where JBIC can demonstrate its capabilities.

Agricultural productivity remains extremely low across much of Africa, raising the question of how to support these growing populations. “I think there is room for Japanese companies to capitalize on their strengths here, especially in logistics. There is potential for companies in the transportation of fertilizers and other agricultural materials and machinery, warehousing, as well as bulk grain transportation.”

Building solid, long-term relations despite differences in business practices

Challenges for Japanese companies in Africa naturally exist, including differences in ways of doing business. “You run into problems such as getting no response to emails and not being able to make an appointment unless you use WhatsApp. If you proceed with a Japanese mindset, it will take forever to contact the key person.”

Even with JBIC's track record, multiple submissions for a government approval process are sometimes necessary, and the signing of financing schemes can take much longer than usual. This stems from administrative complexity in African countries, and a lack of the kind of systematic frameworks found in Japan. Building trust through face-to-face meetings is also important, which can be a disadvantage for the Japanese side due to physical distance.

Geopolitical shifts can also not be overlooked. The actions taken by the U.S. under the second Trump administration are having especially significant impacts. Emblematic of this is the suspension of USAID (the United States Agency for International Development) funding. Sub-Saharan Africa received 40 percent of USAID support in 2023, with major implications in sanitation and infectious disease control.

There are concerns that deadly epidemics could spread across Africa. Declining U.S. influence in Africa could also encourage a rebalancing in favor of China.

Going back to the time of Mao Zedong, China has long been committed to Africa, adapting its approach to fit the changing reality on the ground. Following a transition to a commercial commitment and a period of heavy involvement in resource development, China is now making public declarations on the importance of sustainability. “It is important to keep a close eye on these developments, including local reactions and sentiment toward China.”

Structural issues such as underdeveloped infrastructure and a lack of manufacturing industries remain deeply rooted across Africa. On the other hand, “Africa's dynamic growth is stunning,” emphasizes AMANO. “But this potential is not yet fully appreciated by Japanese companies. We do not want TICAD to be just a single event, but rather to foster sustainable and long-term engagement with Africa.”

---