The news:
- A new ¥3 billion (~$20 million) fund launched by Japanese VCs targets early‑stage African startups in fintech, mobility, agri‑tech, logistics, and sustainability.
- The fund aims not only to invest capital but also to create strategic pathways between African startups and Japanese corporates.
- This move builds on Japan’s growing engagement in African venture capital—via Samurai Incubate Africa, Verod‑Kepple, and Sony Ventures.
Two Japanese venture capital firms—Uncovered Fund and Monex Ventures—have launched a new ¥3 billion (approximately $20 million) fund to back early-stage startups in Africa and the Middle East.
Named Uncovered Monex Africa Investment Partnership, is set to invest up to $2 million in startups operating in key sectors including fintech, distribution and logistics, mobility, and sustainability.
But this is not just about money. According to both firms, the fund will serve as a strategic bridge between Africa’s emerging tech scene and Japan’s corporate giants.
The goal is to open up new opportunities for African startups by providing access to Japanese markets, expertise, and potential business partnerships. For Japanese companies, it’s a chance to tap into Africa’s high-growth innovation spaces.
This approach reflects a broader shift in how Japan engages with African innovation. Over the past few years, Japanese VCs have become more active in the continent’s startup ecosystem.
Samurai Incubate Africa, for instance, launched in 2018 and raised an $18.2 million second fund by 2020, backing more than 20 African startups in sectors like agritech, e-commerce, and financial services.
Growth-stage investment activity is also rising. Verod-Kepple Africa Ventures closed a $60 million fund in 2024 with backing from several major Japanese institutions, including SBI Holdings, Toyota Tsusho, Sumitomo Mitsui Trust Bank, JICA, and the Japan ICT Fund.
The fund’s strategy includes helping portfolio companies form partnerships with Japanese firms looking to expand into African markets.
Other corporate VCs are following suit. Sony Ventures launched a $10 million entertainment fund targeting African startups in gaming, music, and media. This growing interest signals Japan’s transition from aid-driven to business-driven engagement with Africa.
Africa’s tech ecosystem is seen as increasingly attractive due to its demographic edge and innovation potential. With a population expected to hit 2.5 billion by 2050 and a mobile-first market, sectors like digital finance, sustainable agriculture, and electric mobility are especially ripe for disruption.
There’s also the possibility of technological leapfrogging. As Kohei Muto of Double Feather Partners points out, African markets could skip traditional models in areas like mobility, creating room for innovations like electric vehicles and battery-as-a-service platforms—areas where Japanese firms already have expertise.
