JAPAN - AFRICA ECONOMIC FORUM

Japan is seeking to diversify the range of its trade partners in Africa and encouraging SMEs and startups to invest in the continent. Tokyo is encouraging the expansion of Japanese SMEs and startups in Africa and the number of big Japanese firms investing in Africa is also increasing.

In 2019, Japanese Prime Minister Shinzo Abe spoke at the opening of the seventh Tokyo International Conference on African Development, known as TICAD, a multilateral event that holds every three years, and on this occasion staged in the port city of Yokohama. He told African leaders gathered for the summit that his government was determined to step up its engagement with the continent. 

Japan’s poor natural endowment has made the country dependent on the international market for natural resources. This is observed in the trading imbalance between Japan and Africa as a whole. In 2017, Japan exported $7.5bn in goods to Africa, one third of it to South Africa. In the same year, Japan imported $8.3bn from Africa, from which 57% were South African goods. 

The number of Japanese companies operating in Africa has increased from 520 in 2010 to 796 in 2017, but the Japanese government hopes to greatly increase that figure in the near future.  

With Africa as the fastest growing economy in the world, evidence suggests that Africa has now entered a cycle of strong economic growth. Investors are now positioning themselves to understand the opportunities across the African continent.

Therefore, Japan - Africa Economic Forum is a forum that will attract more investors to Africa, create new market opportunities and promote mutual beneficial relationship in business transactions among Japan and Africa.