The Nigerian National Petroleum Company announced its first shipments of LNG to Japan in August this year, as well as China. The move was significant as it not only reflected a key milestone for Nigeria, but also underscored Africa’s potential to supply energy-hungry markets around the world and foster closer trade relations with Asia. As the Invest in African Energy (IAE) 2025 Forum – taking place in Paris next May – connects global investors with Africa’s energy prospects, Japanese companies and business leaders will be a key focus, as the country plays a growing role in the continent’s natural gas and clean energy development.
Targeting African LNG Markets
In addition to Nigerian LNG imports, Japan has shown broad interest in strengthening business and trade relations with the West African country. The Japanese government has announced plans to invest $30 billion from public and private entities in Nigeria and other African countries through 2025, with a focus on improving the business environment and increasing trade volumes between the two countries, which stood at more than one billion dollars in 2022. Japan also expressed interest in supporting Nigerian start-ups across multiple sectors and solving business challenges during a meeting between Nigerian and Japanese foreign ministers in August.
Mozambique is another strategic market for Japan. In November 2023, Japanese and Mozambican foreign ministers met to cooperate on resuming the development of the $20-billion Mozambique LNG project in Area 1, which has faced delays but is not expected to come online in 2028. Japan is a key stakeholder in the project: the Japan Bank for International Cooperation provided $3 billion in financing – representing one of the largest Japanese investments in Africa to date – along with the participation of Japanese private sector banks including MUFG Bank, Mizuho Bank, Sumitomo Mitsui Banking and Sumitomo Mitsui Trust Bank. In addition, Japanese conglomerate Mitsui & Co. and the Japan Oil, Gas and Metals National Corporation jointly hold a 20% interest in the Area 1 Block located in Mozambique’s offshore Rovuma Basin, which is estimated to hold 75 trillion cubic feet of recoverable gas. Upon completion, approximately 30% of the project’s 12-million-ton-per-year LNG production will be exported to Japanese electricity and gas companies, with a view to securing and diversifying Japan’s long-term LNG supplies. African gas megaprojects represent a key partnership and investment opportunity for Japan, not just in meeting its own LNG demand, but also engaging in LNG resales and marketing with South and Southeast Asia markets.
Mobilizing Diversified Investments
Japan is also seeking to increase the participation of its private sector and industrial giants in Africa’s low-carbon energy space. In 2023, Japan’s top business leaders – including representatives from Mitsui & Co., Sumitomo Corporation, Mitsubishi Corporation and Toyota Tsusho Corporation – met with a delegation from the African Development Bank (AfDB) to explore opportunities and accelerate investment on the continent. The AfDB held discussions with nine top Japanese companies and venture capital funds operating in Africa, centering on how Japanese next-generation technologies can contribute to green hydrogen and ammonia, solar power and energy storage development on the continent.
More recently, in June, the AfDb made the case for Japanese investment in Africa at the Japan-Africa Business Forum in Tokyo, showcasing the potential for smart investments on the continent that leverage Japan’s competitive advantages, particularly in the field of geothermal energy. The Bank highlighted its current facilities aimed at de-risking projects, as well ongoing initiatives to develop the local workforce and African start-up ecosystem. While Japanese investment in Africa’s energy sector has been more limited – in comparison to that of the US or China – there is a clear opportunity for increased private sector participation in harnessing Africa’s energy resources and enabling a transition to a low-carbon future, with renewed support on both sides.
IAE 2025 is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 13-14, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit www.invest-africa-energy.com. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.
