Hello, Everyone.

In 2025, there were once again many events of great importance to our business.

In August, TICAD 9 (the Tokyo International Conference on African Development) was held in Yokohama. It was the first time in six years that the conference had been held in Japan, and it was a tremendous success. We heard that the number of MOUs was approximately four times that of the previous conference, and we were honored to participate as well. Our group exhibited two booths (AAIC / OSTI), organized seminars, spoke at related events, and invited our portfolio companies, enabling us to hold meetings with many Japanese companies.

Furthermore, in November, we held the inaugural “Made in Africa Tour (MiA Tour).” Participants expressed very positive feedback, saying they were “deeply impressed” by the sites visited in Egypt and Nigeria.

Of course, we also held our annual Spring Seminar in April as usual.

Compared to when we first began our work in Africa 13 years ago, we now strongly feel a surge of momentum. In particular, interest in the “Global South,” including Africa, is clearly increasing year by year.

None of this would have been possible without the tremendous support, for which we would like to express our deepest gratitude. Thank you very much.

 

• Our founding philosophy and initial hypothesis were based on the belief that:
• ・”Let’s make Japan better!”
• ・”For that, growth is essential.”
• ・”To achieve growth, Japanese companies and people must grow together with fast-growing emerging countries.”

 

Thanks to the support of many people, our company has grown to over than 50 members, and our group footprint has expanded to 10 locations: Singapore, Tokyo, Shanghai (China), Grugaon (India), Nairobi (Kenya), Lagos (Nigeria), Johannesburg (South Africa), Kigali (Rwanda), Cairo (Egypt), and Arusha (Tanzania). We strongly feel that our initial hypothesis at the time of founding was correct.

To realize growth in emerging countries and new fields—particularly in fast-growing Asia and Africa—we operate three businesses: Strategic Consulting, Funds (Investment), and Human Capital & Technology.

In our long-standing strategic consulting business, we have provided extensive support in areas such as deep market analysis, M&A advisory, market entry support, and new business creation.

In addition, we currently operate Africa-focused Fund I and Fund II, and as of early December 2025, we have made investments in a cumulative total of 62 companies. Many collaborations and co-investments with Japanese companies have emerged, and value creation is steadily progressing.

 

The year 2025 was one of dramatic upheaval, —truly an era of turbulence.

• ・The Trump shock
• ・The Gaza ceasefire alongside the continuation of the Ukraine conflict
• ・The launch of the Takaichi administration
• ・Escalating friction with China
• ・The rise of AI
• ・And soaring stock markets

 

• We would like to attempt to foresee the year 2026.
• With the U.S. midterm elections this year, we anticipate a new major global shift following the COVID-19 pandemic, the Ukraine war, and the Trump shock.

 

Five Major Predictions for the Global South in 2026: A Major Shift

• 1) The center of global growth will shift decisively to the Global South (India, Africa, etc.).
• ・High growth: Global South (India, Africa, South America, Middle East), United States
• ・Stagnation: Europe, China, most of Southeast Asia (with some exceptions), Russia

 

• 2) A major shift toward a new global order will occur.
• ・From cooperation to power-based diplomacy (social instability / geopolitical risk)
• ・From globalization to bloc economies (anti-immigration policies / high tariffs)
• ・From deflation to inflation (rising prices / higher interest rates)

 

• 3) All jobs will begin shifting to AI.
• ・AI will increasingly replace all types of work, and this shift will begin in earnest.

 

• 4) A major shift away from China—of goods, factories, people, and capital—will accelerate.
• ・Excess production exported globally, relocation of factories, shifts of wealthy individuals and capital
• ・EVs, IT, semiconductors, and AI will spread globally, causing major changes in global market shares

 

• 5) Japan may begin a major shift from the long stagnation of the Heisei era toward revival through true openness.
• ・The massive population decline will have widespread impact
• 　　(estimated 660,000 newborns in 2025, a decrease of approximately 970,000 people)
• ・A once-in-a-lifetime opportunity for true openness will emerge:
• 　　“Becoming a Reiwa-era nation of open markets and free exchange, such as Rakuichi-Rakuza in the Reiwa Era”

 

Japan’s greatest challenge is the massive population decline described in point No 5. It is predicted that Japan’s population will decrease by approximately one million people per year for the next 50 years. Addressing this issue at its core is the first step toward revitalizing Japan.

We are convinced that this can be achieved by enabling Japanese companies and people to compete and win globally, and by creating a truly open “Reiwa-era nation of free markets such as Rakuichi-Rakuza in the Reiwa Era” where people, capital, information, and companies flow in from around the world.

As mentioned earlier, last year our entire company participated in TICAD 9 at the end of August, announcing numerous partnerships between African and Japanese companies. In the autumn, we conducted the “Made in Africa (MiA) Tour,” allowing many Japanese companies to see African manufacturing sites firsthand.

In our fund business, through Africa Fund I and II, we invested in a cumulative total of 62 companies (as of early December), and collaborations and co-investments with Japanese companies accelerated in earnest.

In our agricultural business, our second farm in Tanzania—approximately 1,760 hectares (about 1.5 times the size of Chiyoda Ward in Tokyo)—entered its third season and achieved further increases in harvest yields.

 

Thank you very much for the continued support.

 

In 2026, the AAIC Group aims to dedicate itself to enabling Japanese people and companies to play an even greater role on the global stage, and to realizing a vibrant “Rakuichi-Rakuza in the Reiwa Era,” where talent, companies, and capital from around the world gather and thrive.

 

We sincerely appreciate your continued support and cooperation.

 

※This text was machine-translated from Japanese to English