From Kanazawa to Africa: The pioneering spirit of Hokkoku Financial Holdings sows the seeds for market entry by Japanese companies

A regional bank embraces the challenge of being the forerunner in an untapped market

“We were the first Japanese banking group to establish a local subsidiary in Africa. I was deeply drawn to this challenge and expressed my strong desire to be part of it,” recalls SHIMIZU Yutaro, managing director of CC Innovation Africa, Hokkoku Financial Holdings.

Financial institutions typically expand their business overseas to support clients with existing operations, but in this case, the sequence was reversed.

It all began with a bold idea: “Let us take the lead in advancing into Africa, and then bring Japanese companies along with us.” This naturally involved risks, but they believe it is only a matter of time before Japanese companies turn their attention to Africa and its promising growth prospects. There was also a significant business opportunity in entering the market ahead of other financial institutions. They also decided to establish a local subsidiary, rather than an overseas branch, to enable the undertaking of diverse operations including financing, investment, and consulting.

“Our corporate culture of taking on pioneering challenges as a bank, such as issuing a cryptocurrency in collaboration with local governments, also helped drive this Africa venture,” says SHIMIZU, who was involved in overseas operations at Hokkoku Financial Holdings, the parent company of Hokkoku Bank.

Working closely with Japanese companies to strengthen their earning capacity in Africa

A year has passed since the local subsidiary commenced operations in Kenya in June 2024. “Business is exceeding forecasts” due to strong demand among local companies for financing, according to SHIMIZU. The decision to establish a base in Kenya was driven by the fact that the country ranks only second to South Africa in the number of Japanese companies operating in Africa. Another advantage is the ability to communicate in English. Adding to its appeal is the pleasant climate afforded by its highlands location, which has even led some to describe it as a “summer in Karuizawa,” referring to a mountain resort in Japan.

Further arousing the interest of Japanese companies in the African market and expanding the business pipeline between Japan and Africa will sow the seeds for economic revitalization in Japan. An urgent issue facing this bank, based in the Hokuriku region (on the Honshu island’s Sea of Japan coast), is the revitalization of the local economy. Supporting the region’s companies in building their capacity in Africa is therefore an important mission. To this end, the bank is also collaborating with local governments and financial institutions to more broadly meet the financing needs of Japanese companies.

Over the past year, SHIMIZU has spoken at various events for startups seeking to expand into Africa, as well as at seminars hosted by the Japan and Tokyo chambers of commerce and industry. At these forums, he has actively shared Africa’s needs and unique challenges, drawing on his firsthand experience on the ground. As a result, he has been also receiving consultation requests from various parties considering expansion into Africa.

“We can’t generalize about Africa, after all, we are talking about 54 countries. What are a company's strengths? Which market does it want to enter and for what purpose? What kind of partners should it seek? These are some of the perspectives I bring to supporting Japanese companies,” he states assertively.

Hokkoku Financial Holdings will change its name to CCI Group in October 2025. Moving beyond the framework of traditional banking, it will further strengthen its global outreach and business expansion. Its challenger DNA lives on, boldly manifesting itself in Africa.

---