As African governments scour the globe for economic partners, Japan is not necessarily an obvious place to look. Few Japanese companies maintain a conspicuous presence in Africa, preferring instead to focus on markets closer to home in other parts of Asia. Africa received just 0.5 of Japan's foreign direct investment by value in 2024 according to the Japanese Ministry of Finance.
Distance is one factor hampering the Japan-Africa relationship. Only one African city, Cairo, has a direct flight to Tokyo. The language barrier is another hindrance. And Japan's historically risk-averse business culture also seems to hold many Japanese companies back from investing in Africa.
Signs of youthful enthusiasmYet there are signs that ties are beginning to deepen. Japanese companies are now "polarised" in how they view Africa, says Keiichi Shirato, a professor of international relations at Ritsumeikan University in Kyoto. "Some companies are very conservative, and they are very hesitant to do business in Africa," he explains.
But this is balanced by companies led by younger executives - who often have a more international outlook and better English language skills - which are forging ahead with efforts to explore opportunities in Africa. These companies tend to recognise that Africa is a "potentially a big market in terms of population," says Shirato. Many view the continent as a promising region to expand their businesses, given that their domestic market is set to shrink significantly as Japan's population declines in the coming decades.
Shirato adds that although the government of Shinzo Abe, which led Japan between 2012 and 2020, had limited success in its efforts to encourage Japanese foreign direct investment FDI in Africa, the outlook may now be more promising. He points to a survey compiled by JETRO, the Japan External Trade Organization, showing that 57 of Japanese companies operating in Africa expect to expand over the next two years. This is the second highest level of any region globally, after southwest Asia.