Japan Initiates Indian Ocean – Africa Economic Partnership at TICAD 2025
On 20 August 2025, Japanese PM Shigeru Ishiba proposed the Indian Ocean – Africa Economic Partnership (#IOAEP) at the 9th Tokyo Conference on Africa Development Conference 2025 (#TICAD2025). The region is expected to be a key driver of global economic growth, whether from a market mass or resource reserve perspective.
According to the United Nations, Africa’s population is projected to grow from 1.5 billion in 2025 to 2.5 billion by 2050. By the middle of the century, the world population will reach 10 billion, and thus, one in four persons in the world will be African. In addition, Africa has abundant reserves of #CriticalMinerals which are essential for industries of the future such as Electric Vehicles (#EV).
In response to the call for #IOAEP, Nikkei organized a hybrid half-day forum on ‘Economic Partnership in Indian Ocean – Africa’ at the Pacifico Yokohama as part of #TICAD9. Combining online and offline attendance, over 2,000 persons participated in the Forum. In addition to Japanese PM Shigeru Ishiba, Togolese President Faure Gnassingbe and Mozambican President Daniel Chapo delivered keynote speeches.
President Gnassingbe welcomed the decision of Toyota Tshuho Corporation to set up a regional base at the Lome seaport. The decision ties in tightly with Togo strategy to position itself as the gateway to West Africa and #UEMOA.
President Chapo also underscored the partnership with Sumitomo and Kansai Electric Power to develop the Mphanda Nkuwa hydroelectric power plant (#HPP). The project is estimated at USD 6 billion with financial backing from the World Bank. French firms EDF and TotalEnergies as well as EDM and HCB are also in the consortium. Moreover, Japan’s Mitsui has a 20% stake in the $20-billion Rovuma Offshore Area 1 #LNG project in Mozambique, led by TotalEnergies. Japan and Mozambique are also working together to develop electricity and water infrastructure along the #NacalaCorridor.
As a paradise-like island-state off the shores of southeast Africa, Mauritius is a renowned International Financial Center (#IFC) and a favorite playground for high net-worth individuals (#HNWI). Thus, Mauritius has emerged as the preferred jurisdiction for Japanese companies to structure their deals across Africa, thanks to the advantages and protections it provides to investors. Mitsui CEO recently visited Mauritius to explore the role of Mauritius as a #TranshipmentHub in the Indian Ocean along the Asia-Africa maritime route. In order to reinforce economic ties, Mauritius PM Navin Ramgoolam officially inaugurated the new Mauritian Embassy in Tokyo during #TICAD2025.
India’s ambassador to Japan, Sibi George, highlighted India strategic position in the Indian Ocean and its key role in linking the Asia and Africa. The Indian Ocean sees 80% of world trade and 95% of India’s international trade goes through the Indian Ocean. On the same note, both Mitsui and DP World had high-level representatives attending the Forum as they view the space as critical for their shipping and port business.
Japan identified the #NacalaCorridor as one of the top #EconomicCorridors targeted for investment. To that effect, Japan is partnering with Mozambique, Malawi and Zambia to develop this economic artery. Additionally, JICA has supported the creation of a Special Economic Zone (#SEZ) in Mombasa which acts as the gateway to #EAC and is the port of entry to the #NorthernCorridor, connecting Kenya, Uganda, Rwanda, DR Congo, and even South Sudan.
This Indian Ocean – Africa Economic Initiative dovetails into Japan’s vision for a Free and Open Indo-Pacific (#FOIP), which focused more on security issues. The Initiative will also serve to strengthen relations between Japan and the #GlobalSouth, whose members are, in their great majority, also either hold membership in the African Union (AU) or the Indian Ocean Rim Association (IORA).