Japan sets sights on Africa's critical minerals, rare earths to cut reliance on China
Japan is supporting its companies to grow their business in Africa and develop trade ties across a continent where it is mainly been seen as a major donor.
The second-biggest Asian economy's emergence from a three-decade period of deflation has boosted its private sector's risk appetite, Takehiko Matsuo, vice-minister for international affairs at the Ministry of Economy, Trade and Industry said in Abidjan, the commercial hub of Ivory Coast.
'Now the mindset of Japanese business leaders has changed dramatically and they are now much more proactive about expanding their business globally,' Matsuo said. 'Africa is one of the destinations where we expect Japanese companies' to grow their presence.
Japan is reasserting a commitment to do more business with Africa as it emerges from years during which its private sector was particularly risk-averse.
The government has yet to declare an end to the deflation that gripped the economy for decades. Still, data this month showed consumer prices have advanced at or above the Bank of Japan's 2 per cent inflation target for three straight years.
Japan's net external assets reached a record high in 2024 as its investors and companies continued to load up on holdings abroad, with the US and UK the prime destinations for foreign direct investment.
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