A leading impact investment group in India, Aavishkaar Group, expand its investments in Emerging Africa and Asia with JICA

Yokohama : The Japan International Cooperation Agency (JICA) announces its decision to newly participate into “Global Supply Chain Support Fund SCSp” (“Aavishkaar Fund”) to foster impact investing in emerging Africa and Asia. The decision was announced in a speech by Japanese Prime Minister Shigeru Ishiba, at the “Economic Partnership in Indian Ocean – Africa Forum”.  The forum was convened in conjunction to the TICAD 9 (Tokyo International Conference on African Development), which is being held in Yokohama, Japan, throughout the week. The fund is being managed by the Aavishkaar Group, a leading impact investment group which is headquartered in Mumbai, India.

Utilizing JICA’s upcoming contribution to the Fund, the Aavishkaar Group as a fund manager provides credits to private corporates operating in Africa, India and other parts of emerging Asia. These investees are involved in a variety of international business supply chains, including those in agriculture, food processing and manufacturing. JICA’s commitment aims to support small and medium-sized enterprises (SMEs) whose businesses have a significant social and environmental impact.

By investing in the Aavishkaar Fund, JICA will help the Aavishkaar Group expand into the emerging markets of Africa and Asia, after India, thereby contributing to the development of the wider Indian Ocean region and the global supply chain.

The war in Ukraine and other international shocks have led to a rapid surge in commodity prices worldwide. This is why improving productivity in emerging continents, such as India and Africa, is crucial for achieving a sound global economy. Developed economies are also observed to demand a higher quality supply chain when trading goods and services with developing countries. The private sector is now being asked more than ever before to properly identify and address the human rights and environmental impacts of its actions throughout the entire global supply chain. JICA’s decision to invest in the Aavishkaar Fund aims to promote ESG integration in the global supply chain between emerging markets and developed economies.

This announcement also complements Japan’s global development agenda. Specifically, the investment into the Aavishkaar Fund is intended to align with the “Japan-India Cooperation Initiative for Sustainable Economic Development in Africa” to promote supply chain resilience in the vast markets of India, Africa and Japan – an initiative announced by the Japanese government. Furthermore, the investment reflects an initiative called ”IDEA” (Impact Investing for Development of Emerging Africa), which JICA newly launched at the TICAD event on 22nd August to support sustainable growth in Africa through public-private collaboration. Through IDEA, JICA aims to realise a total of USD 1.5 billion in public-private impact investment in Africa, generating development impacts in time for the next round of TICAD (TICAD 10).

Speaking at the event, Mikio Hataeda, JICA’s Senior Vice President, said: “We are honoured to invest in the Aavishkaar Fund, with which JICA has a long-standing relationship and has achieved significant impact in India. By investing in the fund and entering a new chapter of collaboration with the Aavishkaar Group, we hope to elevate the well-established India-Japan partnership and  further strengthen our commitment to impact investment in Africa and Asia.”

Vineet Chandra Rai, Founder and Chairman, Aavishkaar Group,  stated, “

We are honoured to welcome JICA’s strategic investment in our Global Supply Chain Support Fund targeting the global south. This collaboration builds upon a decade of our relationship and reflects the long-standing tradition of Indo‑Japan economic cooperation. Together, we are committed to advancing shared values of sustainable growth and transformative opportunities for SMEs across the African & Asian continent and look forward to a long and an impactful alliance.”

JICA is firmly committed to supporting inclusive and sustainable development in Africa and Asia through strategic partnerships and innovative financing solutions.