Hello, Everyone.

Last year (2024), we organized our 15th Anniversary Spring Seminar and the AAIC Roadshow in Tokyo, inviting companies from our investment portfolio to Japan. These were among our first in-person events since the pandemic, and we were delighted to see such a great turnout. This would not have been possible without the tremendous support of everyone involved, and for that, I extend my heartfelt 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 emerging markets.”

Thanks to the support　of so many people, our company has grown to over 50 members, and our network of related group offices has expanded to 10 locations, including Singapore, Tokyo, Shanghai (China), Mumbai (India), Nairobi (Kenya), Lagos (Nigeria), Johannesburg (South Africa), Kigali (Rwanda), Cairo (Egypt), and Arusha (Tanzania). This has reinforced my conviction that our initial hypothesis was correct.

To achieve growth in emerging markets and new sectors, particularly in high-growth regions such as Asia and Africa, we focus on three core businesses: Strategic Consulting, Investment Funds, and Talent & Technology.

We have extensive experience and provide support in market deep dives, M&A, market expansion, and the creation of new businesses, among other areas.

Our Africa fund has also been active, managing two funds and investing in a total of 54 companies as of early December 2024. We have facilitated numerous collaborations and co-investments with Japanese companies, driving significant value creation.

The year 2024 was truly a turbulent one:

・The re-election of President Trump

・The ongoing conflict in Ukraine

・Escalating conflicts in the Middle East

・Continued economic struggles in China

・The inauguration of the Ishiba Administration in Japan

We now turn to 2025 and share our predictions for the year:

Six Key Predictions for the Global South (Asia & Africa) in 2025

1) The centre of global growth will shift westward from China and Southeast Asia to India and Africa.

・This trend will accelerate further. India is rising, and Africa is following suit.

2) Ceasefires in Ukraine and Palestine seem likely.

・While the outlook remains uncertain, ceasefires may be reached, albeit without fundamental resolutions.

3) The rise of the Global South will coincide with economic bloc formation and new partnerships.

・U.S.-China tensions will drive both economic bloc formation and new economic partnerships. Could Japan benefit as a neutral party?

・Immigration restrictions, high tariffs, inflation, social unrest, and geopolitical risks will expand.

4) China will face low growth, with no Taiwan integration in 2025, but the likelihood will increase in the near future.

・Challenges include a halving of the birth rate in 10 years, ongoing real estate and local government debt issues, and intensifying U.S.-China conflicts.

・Wealthy Chinese and capital will increasingly leave the country, while industries like EVs, semiconductors, and AI flourish.

5) A short-term bubble could emerge, followed by a major crash in 2–3 years.

・Policies under Trump may lead to U.S. inflation and a bubble, followed by a significant downturn.

・Consumer goods, services, and wages may rise sharply, while energy prices decline.

6) Japan faces the critical impact of a rapidly shrinking population, but also an opportunity for revival through true globalization.

・In 2024, Japan’s population decreased by an estimated 940,000 people.

・This is Japan’s greatest challenge, and addressing it is the first step toward revitalization.

The biggest challenge for Japan is No 6, a rapidly shrinking population: the Japanese population is estimated to decrease by 940,000 people. The population decline is predicted to continue by one million each year for the next 50 years.

The drastic measures are the first step for Japan’s Revitalization. We are convinced that these measures are ‘Japanese companies win in the world’ and ‘Japan realizes a Free For-All-Market such as ” Rakuichi-Rakuza in the Reiwa Era”, where people, capital, information and companies come from all over the world through a true opening of the country’.

Last year, we saw a sharp increase in projects related to the Global South, including supporting Japanese companies entering India, facilitating M&A, and creating new businesses in Africa. As of early December 2024, our Africa funds had invested in 54 companies, with many collaborations and co-investments involving Japanese firms. In November, we hosted the AAIC Roadshow in Tokyo, bringing together 10 of our portfolio companies and achieving tremendous success.

In our agriculture business, our second farm in Tanzania, covering approximately 1,760 hectares (1.5 times the size of Tokyo’s Chiyoda Ward), became fully operational, doubling the coffee harvest compared in 2023. We are also collaborating with several Japanese companies to promote the “Smart Village Project.”

In 2025, the AAIC Group would like to help Japanese companies and individuals excel on the global stage and contribute to the realization of a vibrant Japan that gathers people, businesses, and capital from around the world—the Free For-All-Market such as ” Rakuichi-Rakuza in the Reiwa Era”

We look forward to working with you this year.

 

※This text was machine-translated from Japanese to English