Japanese businesses should invest more in Africa, where investment opportunities and returns are among the highest in the world, African Development Bank (ADB) President Dr. Akinwumi Adesina has said.

Speaking at the 8th Tokyo International Conference on African Development (TICAD8), he said that Africa accounted for just 0.003% of Japan’s $2 trillion in global foreign direct investment.

Adesina stressed that Japanese firms which were bold in their investments in Africa were prospering, citing the example of Toyota Tsusho’s investment in automobile factories in South Africa, which had generated $8.5 billion in revenues in March of 2022. Others included Komatsu and Mitsubishi Heavy Industries.

Citing Africa’s youth, entrepreneurism and innovativeness, 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.”

He named other vital investment sectors, including the production of lithium batteries that power electric vehicles, agribusiness and renewable energy.

The African Development Bank chief said African countries would require significant financial resources to cope with the impacts of COVID-19, accelerating climate change and the Russia-Ukraine conflict.

“This is the time to strongly support the African Adaptation Acceleration Program to mobilize $25 billion for climate adaptation for Africa, especially as we look forward to Cop-27 in Egypt.”

Adesina said the Bank’s African Emergency Food Production Facility, launched in May 2022, provided $1.13 billion for 24 countries in financing an expected $1.5 billion for emergency food production.

The African Development Bank had fast-tracked approval of the facility earlier in 2022 to avert a potential food and fertilizer crisis arising from the war in Ukraine.

(Editing by Cleofe Maceda; cleofe.maceda@lseg.com)