October 24, 2025

Japan Launches First Public-Private Alliance to Support Business Expansion into Africa

Japan’s Ministry of Economy, Trade and Industry, together with venture capital firms and other partners, will establish the country’s first public-private alliance to support Japanese companies seeking to expand into Africa. The initiative will consolidate information and expertise on local startups and create a framework to promote collaboration between Japanese firms and African partners. While Africa is strategically important to Japan as a source of natural resources, Chinese companies have been rapidly expanding their presence across the continent. The government, therefore, intends to act as a strong backer to help Japanese companies enter African markets.

Until now, most Japanese companies operating in Africa have done so through individual arrangements, such as agency agreements arranged by trading houses, working separately with local firms. The new alliance will instead compile a comprehensive list of promising partner companies and establish a cross-sector platform that enables collaboration across a wide range of industries. Japan currently has fewer than 1000 business locations in Africa, compared with more than 30000 for China and nearly 5000 for India. Chinese companies have been particularly active in infrastructure and resource development, but collaboration among private-sector players, including startups, is said to remain limited. METI believes that this leaves ample business opportunities for Japanese firms.

Opportunities Driven by Population Growth and Emerging Industries

According to United Nations population projections, Asia’s population is expected to peak around 2050, while Africa’s will continue to grow thereafter. Goldman Sachs forecasts that Nigeria will rise to fifth place globally in GDP by 2075. With these long-term growth prospects in mind, the alliance aims to attract private investment into Africa’s startup ecosystem in coordination with intergovernmental cooperation programs. The coalition will place particular emphasis on services addressing logistics and transportation shortages, as well as on the production of entertainment content, such as animation and games.

Looking Ahead to Funding from Major Financial Institutions

As collaboration with local startups deepens and business projects gain traction, the alliance plans to encourage funding from major Japanese financial institutions. The secretariat will be operated by Yoren Japan, which has experience supporting brand development in China and manages membership data for about 65 million users. The Japan External Trade Organization (JETRO) will also provide information.

At the Tokyo International Conference on African Development, or TICAD, to be held in Yokohama in August, related events will be organized to conclude multiple memorandums of understanding between Japanese companies and African startups.