Japanese companies continue to expand their presence in Africa, but remain cautious

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By Africa Links 24
Published on 2024-04-11 10:21:20

In recent years, Africa has become a battleground for geopolitical competition, leading to the emergence of “Africa-Plus-One” summits between individual nations and the continent. These summits have become common practice, with major global powers recognizing Africa’s potential as home to rapidly growing markets and essential natural resources crucial for the transition to a greener economy.

Examples of such summits include the Forum on China-Africa Cooperation in 2021, the US-Africa Leaders Summit in Washington in 2022, the Russia-Africa Summit in St. Petersburg, and the Saudi-Arab-African Economic Conference in Riyadh in the same year. Even middle-ranking powers like South Korea and Turkey are engaging in dialogue with African nations to strengthen ties.

However, the style of diplomacy seen in these summits can be traced back to Japan, which identified Africa’s geopolitical significance over three decades ago. The Tokyo International Conference on Africa’s Development (TICAD) was established in 1993 to foster new relationships in a changing post-Cold War world.

Seifudein Adem, a global studies professor at Doshisha University in Kyoto, credits TICAD for revitalizing international interest in Africa’s development during a period of declining attention in the 1990s. He highlights Japan’s economic success following World War II, where it leveraged rapid industrial growth to become a major global player. South Korea has also drawn on its economic experiences to strengthen ties with Africa.

Japan’s approach has focused on inspiring Africa to achieve higher rates of economic development and growth, drawing from strategies like diversification, domestication, and indigenization. The emphasis has shifted from development aid to private sector engagement, with Japanese companies increasingly investing in Africa.

Japanese companies have been strategic in their operations in Africa, focusing on acquisitions and hiring locals, in contrast to China’s more infrastructure-centric approach. This shift towards private sector partnerships offers competition to China’s influence in Africa, driving economic growth and development.

Despite the progress, challenges remain. Japanese investors are cautious due to perceived risk in Africa, and African governments need to proactively develop local ecosystems to attract international investment. Japan aims to position itself as a growth partner for Africa, but there is still room for growth in the Japan-Africa relationship.

Overall, there is potential for significant expansion in economic engagement between Japan and Africa. Both sides stand to benefit from closer cooperation, with opportunities for mutual growth and development. By overcoming challenges and fostering strategic partnerships, Japan and Africa can unlock the full potential of their economic relationship.

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