President of the African Development Bank (AfDB), Dr Akinwunmi Adesina, has urged Japanese businesses to invest more in Africa, a continent full of immense opportunities and among the greatest rates of return on investment in the world.
This is made known in a statement from the Communication and External Relations Department of the AfDB in Abuja.
The 8th Tokyo International Conference for African Development (TICAD8), addressed participants which was attended by 20 heads of state from Africa from August 27 to 28.
Adesina applauded the Japanese government and private sector for their steadfast assistance in the development of Africa.
He advised Japanese companies to evaluate Africa’s potential opportunities using data and facts rather than opinions.
Saying: “In 2020, Moody’s Analytics performed a 10-year cumulative assessment of global infrastructure debt default rates, by region.
“It found that Africa was the region with the second lowest cumulative default rate, after the Middle East.
“That is proof once again that infrastructure as an asset class in Africa is solid, secure, and profitable.”
He noted that African countries would need significant financial resources to cope with the effects of the Covid-19, the accelerating climate change and Russia’s war in Ukraine.
“This is the time to strongly support the African Adaptation Acceleration Program to mobilise 25 billion dollars for climate adaptation for Africa, especially as we look forward to Cop-27 in Egypt,” Adesina said.
He added that the bank’s African Emergency Food Production Facility, launched in May, was providing 1.13 billion dollars for 24 countries in financing an expected 1.5 billion dollars for emergency food production.
Adesina appreciated Japan for its contribution to the facility. Saying: “I am delighted that the Japan International Cooperation Agency (JICA) has provided additional co-financing of 518 million dollars to support the facility.”
He emphasized that the companies that were succeeding were the courageous Japanese businesses who made investments in Africa.
He cited Toyota Tsusho’s investment in car plants in South Africa as an example, noting that it had brought in 8.5 billion dollars in income in March.
He included Komatsu and Mitsubishi Heavy Industries as additional companies.
Citing Africa’s youth entrepreneurship and innovative skills, Adesina said: “Africa is home to a vibrant fintech ecosystem that is leading the continent’s digital revolution with the highest potential to lead the world.
“The continent is home to 576 fintech start-ups and they are run by young people.”
Adesina also mentioned the creation of lithium batteries, which power electric vehicles, the agricultural industry, and renewable energy sources like hydropower, wind power, and geothermal energy.
