Japan is preparing to mobilize $1.5 billion in impact investments aimed at helping African nations reduce greenhouse gas emissions and advance sustainable development, according to a report by public broadcaster NHK on August 19.
The official unveiling of the initiative is expected at the 9th Tokyo International Conference on African Development (TICAD-9), scheduled to take place in Yokohama from August 20 to 22.
The funding package will be structured with support from the Japan International Cooperation Agency (JICA) alongside private financial institutions. Citing foreign ministry officials, NHK noted that the program is designed both to tackle Africa’s urgent challenges and to create business opportunities for Japanese companies.
Projects under consideration include large-scale wind power generation to curb emissions and financing for a healthcare startup that operates medical facilities to improve access to health services.
Impact investing, as defined by the Global Impact Investing Network (GIIN), refers to investments intended to produce measurable social, environmental, or economic benefits while also generating financial returns. It is guided by two principles: intentionality, where investors set clear goals for positive impact alongside financial viability, and additionality, meaning the investment would not occur without the impact investor’s involvement.
These principles set impact investing apart from conventional investments, which typically focus on financial returns even when accompanied by positive environmental, social, and governance (ESG) practices.
Japan has consistently sought to distinguish its engagement in Africa from that of China, which has expanded its presence through large infrastructure loans. Tokyo instead prioritizes initiatives with lasting social and economic benefits, such as healthcare system strengthening, human capital development, and renewable energy expansion.
