Japan Vows T Grow Its Footprint in Africa

By Post Reporter

Japan is shifting its approach towards Africa, evolving from a key donor to a strategic business partner. According to Takehiko Matsuo, Vice-Minister for International Affairs at the Ministry of Economy, Trade and Industry, Japan’s emergence from a three-decade-long deflationary period has boosted its private sector’s risk appetite. This change has led Japanese business leaders to become more proactive about expanding globally, with Africa being a key destination.

Matsuo highlighted Africa’s potential, citing Goldman Sachs Group research that projects six of the world’s biggest economies could be in the Global South, including Nigeria, by 2075. Japan is particularly interested in critical minerals, base metals, and rare earths to reduce its reliance on China, Africa’s top trading partner. Matsuo emphasized the need for diversification, stating, “We are pretty much depending on Chinese companies… only depending on one country may be causing some vulnerability.”

Several Japanese companies are already making significant investments in Africa, such as Mitsui & Co. emerged as the highest bidder for a stake in First Quantum Minerals Ltd.’s Zambian copper mines. Other companies are exploring new technologies, such as Preventive Medical-Care Services while Fujifilm is looking into introducing preventive medical-care services, especially relevant in regions with low health insurance penetration.

Known for its vehicle mass production that has sustained the global mobility industry, Toyota Tsusho is reportedly exploring automobile recycling systems, with Hitachi building construction machinery currently working on hybrid dump trucks to help green mining operations.

Unconfirmed reports claim Japanese investors are also interested in green hydrogen and ammonia to decarbonize industries.

To foster innovation, Japan has announced an initiative to connect Japanese and African startups. This move is part of Japan’s broader effort to expand cooperation with Africa. In 2022, Japan was sub-Saharan Africa’s third-biggest provider of overseas development assistance, with $1.68 billion in gross disbursements. Notably, Japan hasn’t announced plans to reduce its aid, unlike the U.S. or the U.K.

The ninth edition of the Tokyo International Conference on Africa Development (TICAD) will be held in Yokohama in August, marking a significant milestone in Japan-Africa collaboration. Matsuo emphasized Japan’s commitment to expanding cooperation, stating, “This year, we will have the biggest meeting for collaboration between Japan and African countries… we are rather making efforts to expand our cooperation.”

As West Africa grapples with terrorism, conflict, and instability, Japan’s approach to peace and security has emerged as a potential game-changer. Unlike traditional Western partners, Japan brings a unique set of strengths to the table, including a collaborative approach, absence of colonial baggage, and no perceived hidden agendas.

The 2013 attack on Japanese engineers in Algeria marked a turning point in Japan’s engagement with West Africa. The incident highlighted the need for Japan to invest in security issues on the continent, particularly in regions facing terrorism. In response, Japan adopted three new foreign policy pillars: strengthening measures against international terrorism, supporting stabilization in the Sahel and North Africa, and promoting dialogue with Islamic and Arab countries.

At the 7th Tokyo International Conference on African Development (TICAD7) in 2019, Japan introduced NAPSA, a framework aimed at addressing the root causes of violence by strengthening institutions and governance, supporting continental initiatives, and stabilizing conflict zones. NAPSA also provides humanitarian aid to refugees and internally displaced people. Japan has since strengthened its activities in regions facing conflict and terrorism, including the Horn of Africa, the Sahel, and Lake Chad Basin.