Japan has emerged as the leading source of foreign funding for African startups, according to market intelligence firm Brighter’s Africa Investment Report 2025. Although American and European financiers have historically dominated foreign investment in this area, Asian and particularly Japanese involvement is steadily increasing. From 2015 to 2024, more than 60 Japanese investors supported 160 African innovators in more than 190 deals.
These investors focus on a variety of industries, but their capital is highly concentrated. Fintech, healthtech and mobility startups absorbed more than 70% of the funding. Nigeria and Kenya remain the main destinations, together accounting for more than half of all deals and more than 75% of total funding.
Japanese funders participate in the African startup ecosystem through several different channels. The most direct route is through Japanese venture capital and private equity funds, of which more than 20 are currently active on the continent. For example, last year Tokyo-based Uncovered Fund partnered 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 across the Middle East and North Africa region. Similarly, Tokyo-based Kepuru Africa Ventures has partnered with Nigerian private equity firm Belod Capital Management to form Belod Kepuru Africa Ventures. This VC firm specifically targets technology-enabled growth-stage companies.
In addition to establishing their own vehicles, Japanese companies are increasingly taking the indirect route of supporting locally operated African venture capital firms. By joining as limited partners, these investors can leverage on-the-ground expertise, reduce the risk of early entry, and quietly build market familiarity. In 2025, Japan’s Sumitomo Mitsui Banking Corporation announced an investment in the African People and Earth Fund III. The fund, managed by Novastar Ventures, targets startups in the education, healthcare, agribusiness, food and water sectors. More than 60 Japanese investors are funding African companies.
A similar trend is the rise of Japanese corporate investors pouring capital into sectors that align directly with their commercial interests. For example, Toyota Tsusho established Mobility 54 in 2019 to serve as its dedicated African corporate venture capital arm. The fund specifically targets mobility startups in Africa. This strategy reflects Toyota Tsusho’s extensive commercial interests in the continent’s transportation infrastructure and vehicle systems. Similarly, Suzuki Global Ventures (SGV), the venture arm of Suzuki Motor Corporation, recently invested in Cordia Directions, a Japanese start-up that operates the Peach Cars platform in Kenya. Peach Cars facilitates used car transactions throughout East Africa. For SGV, this investment is a strategic move to gain market insight in East Africa, strengthen the Suzuki brand and support sales expansion in the region.
Beyond mobility, Japan’s Marubeni Corporation is backing AAIC Investment’s Africa Innovation & Healthcare Fund, which targets digital health startups focused on everything from telemedicine to AI-powered medical diagnostics. AAIC has also attracted funding from several other large Japanese companies. AAIC CEO Susumu Tsubaki previously told the NTU-SBF Africa Research Center that these companies have a long-term goal of selling their products in Africa and see the investment as an entryway into the rapidly growing healthcare market. He pointed out that although Japan has advanced medical technology, most of it is targeted at the domestic market. As Japan faces an aging population and declining birthrate, Tsubaki argued that companies should look to emerging markets like Africa for future growth.
References
“Novastar Ventures Africa People and Planet Fund III LP – Investment 01”, UK International Investment, December 2024
“Suzuki’s deal with corporate venture capital arm in Kenya”, Africa Private Equity News, July 3, 2025
“Japan-UK collaboration for innovation in Africa”, UK International Investment, August 1, 2025
“Japanese LPs back Novastar Ventures fund”, Africa Private Equity News, August 27, 2025
“Japanese venture firm launches $20 million fund for African startups”, Africa Private Equity News, August 28, 2025
“Africa Investment Report 2025”, Briter Intelligence, January 20, 2026
“African tech sector booms as Japan and Gulf investors lead $180 billion inflows”, Tech In Africa, February 2026
