'Meet the Toshikas (Investors)' — Top African startups gather in Tokyo to discuss growth potential in the last frontier

J-STORIES — Africa, often referred to as the “last frontier for growth,” is receiving significant attention due to its abundant resources and rapidly growing youth population. In the startup market, ambitious companies led by younger generations are emerging, aiming to balance profitability and social problem-solving through the use of digital technology. Despite this, many challenges, such as the lack of a sufficient funding infrastructure, remain.

Amid these circumstances, a startup pitch event was held in Tokyo, bringing together African entrepreneurs seeking investment and Japanese investors looking for promising ventures. The event was aimed at fostering growth in Africa’s startup ecosystem and encouraging investment from Japan.

The "Meet the Tôshikas" program is introduced.      Photo: J-Stories (same below) — The "Meet the Tôshikas" program is introduced. Photo: J-Stories (same below)

This event, titled "Meet the Tôshikas" (Meet the Investors), was co-hosted by the United Nations Development Programme (UNDP) and the Japan-based international venture capital firm Double Feather Partners. Six startups from three African countries -- South Africa, Angola, and Zambia -- were selected to showcase their services to Japanese investors and corporate representatives.

The event received applications from 256 startups across these three countries. After multiple rounds of screening by UNDP staff and Japanese venture capitalists, six startups were chosen. These startups, striving to achieve profitability and social reform, focus on advancing women's participation in society and improving environmental issues. Of the six startups that participated, three were involved in e-commerce.

According to Hideko Hadzialic, Director of the UNDP Representation Office in Tokyo, African startups have advanced rapidly, particularly in the e-commerce and technology sectors. She noted, “Due to the lack of well-developed infrastructure and climate challenges, the value of using technology is higher in Africa than in Japan, and digitalization is progressing.”

“Due to underdeveloped climate and infrastructure, the value of using technology is higher in Africa than in Japan, leading to more advanced digitalization.” — Hideko Hadzialic, UNDP Representative in Japan

However, the negative perception of Africa as "dangerous" persists in Japan, leading to certain countries being favored over others as potential investment destinations. "It is important for business people and those in the private sector, like at this event, to work together with African startups to change these negative perceptions by actively sharing success stories," Hadzialic said.

Thato Schermer, co-founder of Zoie Health, a South African startup providing online medical consultations and prescription services for women, explained that she participated in the event to seek investment from Japan and receive advice on expanding her business.

“Japan has a very advanced economy, with really big companies and great experience. And so, getting advice and input from people who have built these massive businesses and this massive economy I think is very important.” said Schermer.

Sergio Tati, co-founder and CEO of ANDA, an Angolan startup offering an electric motorbike taxi service, also emphasized that advice from Japanese venture capitalists was as important as financial support.

“We are not only looking forward to meeting investors but also fellow founders and startups within this program and other Japanese startups. Especially with other founders because I have experience gaining a lot of resources and help from other founders. This program offers more than just financial assistance. The experiences of investors who have invested across regions and seen companies like ours are invaluable. This expertise is worth more than just monetary investment,” said Tati.

On the other hand, Shinpei Chihara, from NEC's Corporate Business Development Department, told J-STORIES that his understanding of African startups was limited. He attended the event "to learn more." Although he felt he did not have enough information to invest, he was impressed by the African startups' focus on addressing social issues, such as health concerns for blue-collar workers.

Sbusiso Buna, co-founder and CEO of Jobox, a South African startup offering a student-company matching service, acknowledged that it was unlikely they would secure investments immediately after the pitch but said there were many takeaways from the event.

"Talking to Japanese companies allowed us to understand their needs and how our company could meet them.” -- Sbusiso Buna, co-founder and CEO of Jobox

“Talking to Japanese companies allowed us to understand their needs and how our company could meet them. Specifically, we have now been asked to help recruit student engineers for satellite offices that large Japanese companies have established in South Africa, Buna said. “This is fantastic for us, as it creates traction, generates revenue, and provides a solid starting point.”

After the pitch session, attendees network at an in-person social gathering.

Participants exchange business cards during the networking session.

According to the organizers, the event focused on just three countries for its first edition, but there are plans to expand worldwide and continue holding the event for years to come.