Japan emerges as a major financier of African startups

Japan has emerged as a leading source of foreign funding for African startups, according to the Africa Investment Report 2025 by market intelligence firm Briter. While American and European funders have historically dominated foreign investment in this space, Asian – and particularly Japanese – engagement has steadily increased. Between 2015 and 2024, over 60 Japanese investors have backed 160 African innovators across more than 190 deals.

Although these investors are looking at various industries, their capital is highly concentrated. Fintech, healthtech, and mobility startups have absorbed over 70% of the funds. Nigeria and Kenya remain the primary destinations, collectively accounting for more than half of all deals and over 75% of total funding.

Japanese funders are participating in Africa’s startup ecosystem through several distinct channels. The most direct route is through Japanese-owned venture capital and private equity funds, with more than two dozen currently active on the continent. For example, last year, Tokyo-based Uncovered Fund teamed up with Monex Ventures – the venture capital (VC) arm of a major Japanese financial group – to launch the Uncovered Monex Africa Investment Partnership. This vehicle targets early-stage startups across Africa and the wider Middle East and North Africa region. Similarly, Tokyo-based Kepple Africa Ventures partnered with Nigerian private equity firm Verod Capital Management to establish Verod-Kepple Africa Ventures. This VC firm specifically targets tech-enabled, growth-stage companies.

Beyond establishing their own vehicles, Japanese entities are increasingly taking an indirect route by backing locally managed African VC firms. Participating as limited partners allows these investors to leverage on-the-ground expertise, mitigate early entry risks, and quietly build familiarity with the market. In 2025, Japan’s Sumitomo Mitsui Banking Corporation announced an investment in the Africa People and Planet Fund III. Managed by Novastar Ventures, the fund targets startups in education, healthcare, agri-businesses, food, and water sectors. More than 60 Japanese investors have funded African firms.

A parallel trend is the rise of Japanese corporate investors channelling capital into sectors that align directly with their commercial interests. For instance, in 2019, Toyota Tsusho established Mobility 54 to function as its dedicated corporate venture capital arm for Africa. The fund specifically targets African mobility startups. This strategy echoes Toyota Tsusho’s broader commercial interests in the continent's transport infrastructure and vehicle systems. Similarly, Suzuki Global Ventures (SGV), the venture arm of Suzuki Motor Corporation, recently invested in Cordia Directions, the Japanese startup that operates the Peach Cars platform in Kenya. Peach Cars facilitates used-vehicle trading across East Africa. For SGV, the investment is a strategic play to gain market insight into East Africa, strengthen the Suzuki brand, and support the expansion of its sales in the region.

Beyond mobility, Japan's Marubeni Corporation has backed AAIC Investment’s Africa Innovation & Healthcare Fund, which targets digital health startups focused on everything from telemedicine to AI-driven medical diagnostics. AAIC has also attracted funding from multiple other large Japanese corporations. Susumu Tsubaki, CEO of AAIC, previously told the NTU-SBF Centre for African Studies that these firms view their investments as a gateway to Africa's rapidly growing healthcare market, with the long-term goal of selling their own products on the continent. He noted that while Japan has advanced medical technologies, most are targeted at the domestic market. With Japan facing an ageing population and declining birth rates, Tsubaki argued that firms must look to emerging markets like Africa for future growth.

 

References

'Novastar Ventures Africa People and Planet Fund III LP - Investment 01', British International Investment, December 2024

'Suzuki's corporate venture capital arm in Kenya deal', Africa Private Equity News, 3 July 2025

'UK-Japan collaboration for innovation in Africa', British International Investment, 1 August 2025

'Japanese LP backs Novastar Ventures fund', Africa Private Equity News, 27 August 2025

'Japanese venture firms set up $20m fund for African startups', Africa Private Equity News, 28 August 2025

'Africa Investment Report 2025', Briter Intelligence, 20 January 2026

'Africa’s tech sector surges as Japan and Gulf investors lead $180 billion influx', Tech In Africa, February 2026