#Japan #Tokyo #IDB Lab #JICA #Tsubasa

Innovative Startups Tackling Development Issues in Latin America and the Caribbean

In an exciting development for international cooperation, the Japan International Cooperation Agency (JICA) has chosen eight Japanese startups to participate in the "Open Innovation Challenge TSUBASA" aimed at expanding business opportunities in the Latin America and Caribbean regions. The selected companies will receive support for a duration of six months, starting from January 2025, to facilitate their endeavor in addressing various social and economic challenges in these areas.

The TSUBASA program, standing for "Transformational Start Ups’ Business Acceleration for the SDGs Agenda," is a collaborative effort between JICA and the Inter-American Development Bank’s innovation lab, IDB Lab. Initiated to contribute to resolving development issues in the Latin America and Caribbean regions, TSUBASA has already supported 27 Japanese firms in entering these markets.

The Latin America and Caribbean region faces numerous development challenges including social inequality, deforestation, environmental pollution, a lack of adequate sanitation and drinking water systems, and limited access to healthcare. Despite these issues, the area is rich in opportunities with a population of approximately 650 million people and a nominal GDP exceeding $5.8 trillion, outpacing that of ASEAN nations.

In its fourth iteration, the TSUBASA program has set up two distinct courses: the Business Course aimed at consumer-centric initiatives and the Government Course designed for projects targeting governmental improvements. The application period for this round ran from January 27 to April 15, 2025.

The startups selected for the Business Course come from various industries, showcasing innovative solutions tailored to specific challenges faced in their respective target countries. For instance:

• - Green Co., Ltd. (Japan) aims to address agricultural issues in Brazil caused by climate change and inefficient agricultural practices. Their proposal involves integrating IoT sensing with satellite image analysis to support smart agriculture.

• - BEAM Technologies (Japan) focuses on improving aquaculture in Ecuador, where changes in environmental conditions threaten shrimp farming. Their solution utilizes Far UVC technology combined with water quality data for enhanced shrimp farming practices.

• - EF Polymer Co., Ltd. (Japan) targets agricultural challenges in Peru and Paraguay related to droughts and rising fertilizer costs by exploring the effectiveness of organic polymers on farmland through local production.

On the other hand, the selected firms in the Government Course include:

• - Arc Edge Space Co., Ltd. (Japan), which plans to create a geospatial information utilization platform in Paraguay to enhance applications for satellite data in various sectors.
• - Aerosense Co., Ltd. (Japan) aims to support disaster response in Peru, which faces high risks from earthquakes and climate change, through the use of domestically produced eVTOL drones.
• - Instalimm Co., Ltd. (Japan) is committed to improving support for the disabled in Chile through the introduction of 3D technology in the manufacturing of prosthetic devices.
• - Futupa Co., Ltd. (Japan) intends to strengthen the automotive industry in Mexico by providing AI services that address challenges like workforce shortages and high turnover rates.
• - Hemicellulose Co., Ltd. (Japan) aims to create biodegradable plastic products from cocoa waste in Ecuador, thus addressing both waste management and sustainability.

The immediate future for these startups looks promising as they will receive guidance and introductions to local networks from JICA, IDB Lab, and consulting firms. Travel to the regions will also be facilitated to assist in the practical implementation of their concepts. Notably, for particularly promising endeavors, additional funding and demonstration opportunities are also made available through the support of IDB Lab and JICA.

The TSUBASA program embodies a transformative approach to international cooperation by merging innovative ideas and business models from Japan with pressing development needs in the Latin America and Caribbean regions. By drawing on over 50 years of established networks and expertise in these areas, JICA, in partnership with IDB Lab, seeks to tackle pressing issues such as regional disparities, forest preservation, water resource management, and access to healthcare through impactful entrepreneurial ventures.

For more information on the TSUBASA program, visit TSUBASA Japan.

About IDB Lab

IDB Lab serves as the innovation and venture capital arm of the Inter-American Development Bank, focusing on supporting innovative businesses that promote social inclusion, environmental sustainability, and productivity improvements in Latin America and the Caribbean. Committed to nurturing early-stage startups, IDB Lab leverages its funding, expertise, and network to stimulate ecosystem growth, commercialize innovative products and services, and foster the development of new industries since its inception in 1993.

To learn more about IDB Lab's initiatives, visit IDB Lab.

About JICA

The Japan International Cooperation Agency (JICA) is the agency responsible for Japan's official development assistance (ODA) implementing bilateral aid to resolve challenges faced by developing nations worldwide. With projects expanding across 150 countries and regions, JICA collaborates with international partners to contribute to global peace and prosperity while addressing issues relevant to Japanese society.

For further details, visit JICA.