In a move signalling growing Japanese interest in Africa’s tech ecosystem, specialist VC Uncovered Fund has partnered with corporate venture firm Monex Ventures to launch a new ¥3 billion (approx. $20m) fund aimed at early-stage startups across Africa and the MENA region.

The fund, named the “Uncovered Monex Africa Investment Partnership,” will focus on startups building the digital and physical infrastructure of the continent’s future. It plans to cut cheques for companies in four key sectors: finance, distribution, mobility and sustainability.

While Africa has seen a cooling in venture capital funding over the last 18 months, mirroring global trends, this new fund is betting on long-term demographic and digital tailwinds. Africa’s population is projected to hit 2.5 billion by 2050, and its mobile internet-connected population is expected to more than double from 500 million to 1.1 billion by 2030.

The fund’s core strategy, however, goes beyond just writing cheques. It aims to act as a structured bridge between its portfolio companies and established Japanese corporations, which are increasingly looking beyond their saturated domestic market for new growth opportunities.

“This is about more than capital deployment; it’s about strategic matchmaking,” a source familiar with the fund’s strategy told Sifted. “The goal is to provide our investors with both strong financial returns and a direct line to innovation and new market entry points in Africa.”

The Four Pillars

The fund has identified four key areas where it believes technology can fill critical infrastructure gaps and where Japanese corporate expertise could be a significant advantage.

• Finance: With a large unbanked and underbanked population, fintech remains a major opportunity. The fund is targeting consumer-facing solutions like mobile payments and micro-lending, as well as B2B platforms providing payment, credit, and accounting services to the continent’s millions of small and medium-sized enterprises (SMEs). The play here is to eventually connect these platforms with Japanese financial institutions looking for new capital deployment opportunities.
• Distribution & Logistics: As urban centres swell, the challenge of getting goods to people efficiently becomes more acute. The fund will back startups in retail tech, e-commerce, and logistics — from last-mile delivery to warehouse optimisation. The strategic link is clear: these platforms could become distribution channels for Japanese consumer and industrial products.
• Mobility: Africa’s rising middle class is driving demand for vehicles. The fund sees opportunity in digital platforms for the used car market, as well as in the nascent electric vehicle sector. With many African governments promoting EVs, the fund believes Japanese companies specialising in automotive parts, battery technology, and data management could find willing partners in its portfolio companies.
• Sustainability: The fund is looking at two main areas: AgriTech and the carbon economy. With an estimated 60% of the world’s uncultivated arable land, Africa’s agricultural productivity is a global concern. The fund will invest in technologies that can connect farmers with high-value crops, smart irrigation, and data-driven insights, creating potential demand for Japanese agricultural machinery and IoT. It will also explore carbon credit projects, a sector gaining traction with European and American buyers, particularly in markets like Kenya where renewable energy dominates.

The partnership combines Uncovered Fund’s on-the-ground network and Africa-specific expertise with Monex Ventures’ deep ties to corporate Japan. Uncovered Fund has been operating in the region through its first fund, giving it a track record of sourcing deals and supporting local founders.

The Uncovered Monex Africa fund enters a market with established pan-African players like Partech Africa and TLcom Capital, as well as a host of regional and local VCs. Its relatively modest size of $20m suggests a focused, hands-on approach, likely targeting seed and pre-Series A rounds.

The fund’s success will ultimately depend on its ability to execute its dual mandate: proving that it can generate top-tier venture returns while simultaneously creating tangible business opportunities for its Japanese corporate backers in one of the world’s most dynamic, and challenging, markets.

The Uncovered Monex Africa fund is betting on a dual-return strategy: delivering financial gains while creating a strategic pathway for Japanese corporations into Africa’s fast-growing markets.