Japan Eyes Africa With New Startup Fund

Japan is strengthening its push into Africa’s tech space with a new $20 million fund designed to back early-stage companies across the continent.

The Uncovered Monex Africa Investment Partnership, created by Japanese venture capital firms Uncovered Fund and Monex Ventures, will focus on startups in fintech, mobility, sustainability, and logistics. Each company could receive up to $2 million in funding.

But the deal is not just about money. The firms say the initiative will act as a bridge, linking African innovators with Japanese corporations keen to enter new markets. This could give startups access to capital, technical expertise, and even business partnerships in Asia.

A Shift in Japan’s Role in Africa

Over the past few years, Japanese investors have become more visible in Africa’s tech ecosystem. Samurai Incubate Africa, for example, launched in 2018 and raised $18.2 million for a second fund by 2020. It has since backed more than 20 startups in e-commerce, agritech, and fintech.

Meanwhile, Verod-Kepple Africa Ventures closed a $60 million fund in 2024 with support from Japanese institutions such as SBI Holdings, Toyota Tsusho, Sumitomo Mitsui Trust Bank, and the Japan International Cooperation Agency. This suggests a pivot from aid-driven engagement to long-term, business-focused investment.

Sony Ventures has also joined the wave, unveiling a $10 million fund for African gaming, music, and media startups. Together, these moves highlight Japan’s growing confidence in the continent’s innovation scene.

Betting on Africa’s Innovation Edge

Africa’s appeal lies in its youthful population and fast adoption of mobile-first solutions. With the population expected to reach 2.5 billion by 2050, sectors like digital payments, green energy, and electric mobility are gaining attention.

There is also the potential for leapfrogging. “African markets could skip traditional models in areas like mobility,” said Kohei Muto of Double Feather Partners, pointing to opportunities in electric vehicles and battery-as-a-service platforms where Japanese firms already have experience.