Japan to promote 'impact investing' in Africa at TICAD conference

The Japanese government is planning to raise a total of 1.5 billion dollars for so-called “impact investing,” to help African nations to reduce greenhouse gas emissions and promote other policies.

An announcement is expected at the meeting of the Tokyo International Conference on African Development, or TICAD, to be held in Yokohama over three days from Wednesday.

“Impact investing” is a strategy that aims to bring about positive changes in resolving social issues while generating financial returns.

With the aim of helping African nations achieve United Nations’ Sustainable Development Goals, the Japanese government plans to raise the 1.5 billion dollars with cooperation from JICA, the Japan International Cooperation Agency, as well as private financial institutions.

Projects eyed for such investment include large-scale wind power generation that will reduce greenhouse gas emissions, and financing a start-up that operates healthcare facilities to expand the provision of medical care services.

Japanese foreign ministry officials say “impact investing” has the potential to achieve two goals at once: solving issues facing African nations, and enabling Japanese companies to make profits.