This article is part of a series produced in collaboration with the African Development Bank in light of its 60th anniversary. Check out our dedicated portal to read about the history of banks and their activities on the continent.
The African Development Bank (AFDB), the largest multilateral lender on the continent, is poised to lead this transformation and seeks international support from longtime development partners like Japan. AFDB will host a series of side events at TICAD 9, which aims to attract Japanese investments in green hydrogen, Mission 300, transportation, health, agriculture and education. AFDB and Japan have priorities such as sustainable infrastructure, green growth, and private sector development.
Strategic partnerships with Japanese institutions such as the Japan International Cooperation Agency (JICA), the Japan International Cooperation Bank (JBIC), and Nippon Export and Investment Insurance (NEXI) complement the AFDB's “High 5” development goals by advancing projects in energy, transportation, health and climate revival.
Enduring partnership
The lasting partnership with the AFDB dates back to 1973 when I joined the African Development Fund (ADF), a bank's concession window focusing on Africa's most vulnerable economy. In 1982, Japan became more involved by becoming a non-regional shareholder in the bank by solidifying bilateral relations rooted in trust, innovation and long-term thinking.
With decades of strong economic cooperation, the alliance has evolved into a robust platform for development finance, knowledge exchange and private sector engagement. Through initiatives like The Enhanced Private Sector Assistance (EPSA), launched in 2006 in collaboration with AFDB, Japan has driven around $9 billion in joint funding for African businesses and infrastructure projects.
Japan also lends support to initiatives aimed at accelerating human capital development and promoting institutional reforms across Africa. Through the Policy and Human Resources Development Grants (PHRDG), the Japanese government funded and coordinated skills development and capacity building programs across ministries, academia and civil society in several African countries.
“Over the past 30 years, Japan has donated 5.3 billion yen ($37.4 million) to the PhRDG, supporting 96 and 11 projects as of September 2024.
Strategic Gateway
Japan will hold the sole external representative office of the AFDB in its suburbs of Africa, highlighting its role as an important diplomatic and economic partner in the Asia-Pacific region. The Asian external representative office at the Tokyo Financial Centre opened in 2012 and serves as a strategic gateway to the region.
The office has established connections with the four non-regional AFDB members in Asia, China, India, Korea and the Republic of Japan. The Tokyo office is striving to strengthen the partnerships that AFDB has with these four countries, strengthen the environment for Asian investment in Africa, and extend the membership of the AFDB Group to other Asian countries.
Furthermore, the presence of AFDB in Tokyo helps to build stronger partnerships with Japanese ministries, development agencies and businesses, ensuring close alignment between Africa's developmental priorities and Japanese investment goals.
The office played a key role in preparing for TICAD 9. It also helped banks actively attract Japanese stakeholders through platforms such as the African Investment Forum (AIF).
Started in 2018 by AFDB and its partners, AIF is a fully transactional platform focused on bankability and advances in the project to financial closure. AIF replaces meeting-style rhetoric with transaction-centric room engagement. The annual Market Day will be held. Investors, governments and financial operators convened in the meeting rooms for not only discussion of development but also for transactions and seals.
Japan plays a strategic role in AIF, actively identifying and funding shocking projects in key sectors. With support from Asian offices, Japanese organizations such as JBIC, JICA, private companies and start-ups have become increasingly involved in investment structure and pipeline development. The bespoke Japan Special Room session in the age of the AIF market has encouraged sector-specific engagement, particularly in energy, agribusiness and infrastructure.
Leadership outreach brings results
Akinwumi Adesina, who will step down as AFDB president in September after serving up to two five-year terms, is on the forefront of coordinating the bank's strategic involvement with Japan.
During his tenure, he led several high-level missions to Japan to showcase Africa's economic potential and investment opportunities. His interactions with Japanese leaders and corporate executives led to discussions centered on new funding frameworks, knowledge sharing initiatives and innovation-driven development. Importantly, several projects have moved from concept to completion, driving concrete development.
Among the projects that have been realized as a result of AFDB's involvement with Japan include the Menengai Geothermal Power Project in Kenya. The electricity production project is helping East African nations develop using clean, affordable sustainable energy.
Geothermal power utilizes heat from the Earth's crust to convert groundwater into steam, driving turbines to generate electricity. Projects that utilize Kenya's vast geothermal reserves will help reduce the country's dependence on fossil fuels and combat climate change.
The project consists of three modular power plants with a capacity of 35 MW. The first plant built by Nairobi-based Socian Energy is already in operation. The second is under construction by Globeleq, an independent electricity producer currently operating across Africa, but is expected to appear in the stream by the end of 2025.
Planners say that with the addition of a third factory in the coming years, the facility will have a total installed capacity of 105 MW and will generate 1,000 gigawatt-hours of electricity each year. The beneficiaries are projected to include 70,000 households and 30,000 small businesses and industries in rural areas.
The Menengai Geothermal Power Project in Kenya demonstrates a successful collaboration between AFDB and Japan. The project includes major Japanese players such as Toyota Tsusha Corporation, JBIC, Nexi and Mizuho Bank. Toyota Tsusha and its group company CFAO Kenya Limited have secured orders from Globeleq's Kenya subsidiary to provide key components for the 35 MW facility, including steam turbines and generators.
Financially, JBIC has signed loan agreements with the East and South African Trade Development Bank (TDB) and committed up to $8.64 million. Mizuho Bank has co-financed the transaction, bringing the entire facility to $14.4 million. To protect commercial lenders from project risk, Nexi has provided insurance coverage for some of the loans provided by private financial institutions.
Supporters of the project argue that the Menengai Geothermal Project connects Africa's development needs, Japanese industry expertise and multilateral finances.
Model for multilateral partnerships
Japan and the AFDB have built enviable models for successful multilateral cooperation when globalization is destroyed and nationalism is taking root. Both AFDB and Japan have recently undergone a leadership transition. Mauritanian Sidi Ould Tah took over Adesina of AFDB in September, while Japan's Prime Minister Shigeru took over in October last year.
An insider familiar with preparing for TICAD 9 says that the AFDB and Japan's new leadership have reaffirmed their commitment to deeper cooperation. “Both partners are keen to expand their engagement through joint funding, technical assistance and innovation. The areas of focus they are said to include green infrastructure, climate addiction projects, digital innovation, startups, impact funds and private sector development.”
The relationship between African Development Bank Group and Japan has evolved into a strategic alliance that promotes Africa's development. The Changing World Order demonstrates the power of sustainable, value-driven partnerships in providing measurable development outcomes. By sharing vision, financial innovation and institutional trust, both sides portray the path to a more resilient and inclusive Africa.
