ATIDI, MUFG and NEXI lay strategies to boost Japanese investment in Africa

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In a bid to deepen economic ties between Japan and Africa, the African Trade & Investment Development Insurance (ATIDI), Mitsubishi UFJ Financial Group (MUFG), and Nippon Export and Investment Insurance (NEXI) have outlined strategies to promote Japanese investment.

This was revealed on the sidelines of the 9th Tokyo International Conference on African Development (TICAD9), taking place in Yokohama, Japan.

The event was attended by senior government officials, investors, development finance institutions and private sector stakeholders, including leading Japanese companies, with the aim of exploring actionable strategies for mobilising more sustainable Japanese investment into Africa.

Under the theme "Unlocking Japanese Private Sector Investment in Africa", the event featured two high-impact sessions highlighting lessons learned from Japanese investments in Africa to date and discussing opportunities for more direct Japanese investment in Africa, with a focus on the landmark liberalisation of Ethiopia’s telecom sector.

The session showcased the launch of Safaricom Telecommunications Ethiopia Plc (STE), a major investment that stands as the single largest Foreign Direct Investment (FDI) in Ethiopia and one of the most significant Japanese-backed projects on the continent.

Through this flagship project the session shared insights into how foreign direct investment (FDI) plays a catalytic role in advancing large-scale infrastructure projects in Africa.

“Unlocking Africa’s vast potential requires bold partnerships and innovative risk solutions. This collaboration with MUFG and NEXI demonstrates how strategic alliances can drive transformational investment.

By mitigating risk and building investor confidence, we are not only enabling landmark projects like Safaricom Ethiopia but also paving the way for a new era of Japanese private sector engagement across the continent,” Manuel Moses, Chief Executive Officer, ATIDI, said.

ATIDI played a pivotal role in enabling this milestone by issuing a 10-year Political Risk Insurance (PRI) policy to Sumitomo Corporation, a key Japanese investor in the STE consortium.

The policy covers key political risks such as expropriation, currency inconvertibility and breach of contract, backed by NEXI’s reinsurance support. This innovative risk solution exemplifies the growing synergy between ATIDI and NEXI in empowering Japanese companies to seize high-potential opportunities in Africa with greater confidence.

“Our collaboration with partners, including ATIDI and MUFG, has enabled us to provide diverse support for Japanese companies’ businesses in Africa. We have been working closely with ATIDI, which led to our reinsurance support for the remarkable telecommunications project in Ethiopia.”

The second session shifted the focus to unlocking institutional and private capital from Japan to power Africa’s development agenda. Speakers delved into how de-risking mechanisms, blended finance models, and public-private partnerships can drive large-scale investment in sectors such as infrastructure, energy and digital transformation.

MUFG shared its experience in structuring cross-border investments, while ATIDI showcased its expanding range of risk mitigation instruments tailored to the needs of investors across the continent.

“As part of our continued commitment to fostering sustainable development across Africa and unlocking new investment opportunities for Japanese corporate clients, we are proud to collaborate with ATIDI and NEXI on this pivotal event.

Together, we aim to explore practical pathways for increasing Japanese private sector engagement on the continent. This initiative supports the objectives of TICAD 9, with a shared focus on advancing quality infrastructure, driving the energy transition, and enhancing public-private partnerships,” Ankit Khandelwal, Director, noted.

Japanese companies have been increasingly exploring Africa’s high-growth markets across sectors such as infrastructure, telecommunications, manufacturing and energy.

MUFG, as Japan’s largest financial institution, has taken a strategic interest in Africa, participating in major infrastructure financings and supporting Japanese clients expanding into the region.

NEXI, Japan’s official export credit agency, became a shareholder of ATIDI in 2023, contributing $15.1m to ATIDI’s capital base, reinforcing its long-term commitment to de-risking Japanese investments in Africa.