Japan's plan to give China a run for its money in Africa
Japan is seeking to grow investments in Africa against raising the stakes against China, the continent's leading trading partner.
A Japanese trade official said that Tokyo is supporting its companies to grow their business in Africa and develop trade ties across a continent where has traditionally been seen as a key donor.
For Africa, Japan's push to recalibrate their relations comes at a critical time. Key sectors of interest are critical minerals, base metals and rare earths.
Mobilising private investment has become more pressing following US President Donald Trump's punitive tariffs, slashing of US aid and China's growing influence in Africa, for whom it recently announced tariff-free market access.
Tsujisaka Takako, deputy director at Japan's Ministry of Trade, said at the Kenyan Business Week at the Japan 2025 Expo in Osaka that Tokyo is keen to rival China in Africa.'There are many initiatives to support Japanese companies in promoting their business in every way. First is the Africa-Pacific Private Economic Forum. In Africa, it is held every three years with the participation of high-level officials and private sector representatives to promote and strengthen business ties between Japan and Africa,' she said.
'The launch of the said forum was originally announced by former Prime Minister Abe at the Sixth Tokyo International Conference on African Development (Ticad VI) in Kenya in August 2016.
She stated that the Japanese government is supporting this through initiatives like the Japan External Trade Organization (Jetro) and the Ninth Tokyo International Conference on African Development (Ticad 9) forum, which will take place later in August this year.
The Ticad 9, scheduled for August 20-22, 2025, in Yokohama.
For the tenth year running China is Africa's biggest trading partner, reaching $296 billion in 2024, according to official data, with 60 percent of the volume favouring China.
In 2024, Japan's trade with Africa reached $25 billion, with Japan selling goods worth $3 billion more than it bought from Africa.
Both run triennial summits with Africa (Ticad for Japan and Forum on China-Africa Cooperation for China) and have pledged some $30 billion over their respective three years since the last summits.
Japan though, traditionally sends more development aid to Africa than China.
Japanese companies are increasingly focusing on sectors like manufacturing, critical minerals, base metals, car exports, as well as introducing technologies like preventive medical care.
A key area of focus is infrastructure development in Africa, with Japanese companies and financial institutions providing capital and expertise in sectors like energy, transportation, and telecommunications.
Japan's net external assets reached a record high in 2024 as its investors and companies continued to load up on holdings abroad.
So far, only a trickle of that has reached Africa, with the continent receiving about 0.5 percent of Japan's foreign direct investment, something Tokyo is keen to improve on.'Kenya ranks top in Africa as the country with the largest number of Japanese companies. There are more than 120 Japanese companies doing business in Kenya and we are putting in place initiatives to invest more in Africa,' Ms Takako said.
Kenya's Trade Cabinet Secretary Lee Kinyanjui pledged ease of doing business and policies, infrastructure and legal frameworks that facilitate seamless operations for both local and international investors.'The African Continental Free Trade Area provides a gateway to an African market of an estimated 1.4 billion people and a combined nominal GDP of $2.78 billion as reported by the International Monetary Fund in 2024. By investing in Kenya, Japanese businesses stand to benefit from an expansive market,' the minister said.
© Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
42 minutes ago
- Zawya
NSDC removing impediments to sugar production in Nigeria — Bakrin
The Executive Secretary/CEO of the National Sugar Development Council (NSDC), Mr. Kamar Bakrin, has briefed critical stakeholders on the progress made by the council in addressing impediments to improved local sugar production in Nigeria. Speaking at a tripartite meeting of the agency, the Ministry of Industry, Trade and investment and the major BIP operators, the NSDC boss said the Council has elevated performance monitoring and oversight of the Backward Integration Programme (BIP) operators beyond what the Sugar Industry Monitoring Group (SIMOG) used to do. According to him, NSDC under his watch has emphasised robust, one-on-one, physical and virtual engagement with the operators, giving them targets and following up on deliverables. Bakrin said 'the operators have complained about the existing loopholes in the free trade zone regime, which they believe certain participants in the NSMP have exploited. 'They also cited delays in the clearing of equipment at the ports, smuggling of sugar into the country, host community resistance to the expansion of their BIP programmes as the primary causes of the delays in their BIP execution.' 'The loopholes in the FTZ regime are being addressed by the ongoing amendment of the NSDC Act by the National Assembly.' He explained that the amendment process involves engagement with the relevant National Assembly Committee, and key stakeholders among other objectives to address the concern of the BIP operators and also make the industry more attractive to other investors. 'The delays in the clearing of equipment at the ports is something that is also being addressed with the Nigeria Customs Service. On the issue of smuggling, the volumes do not significantly alter the economics of sugar production and the market dynamics. But regardless, we have engaged the relevant security agencies on the matter. 'In terms of host community resistance, the council consistently intervenes and has actually driven the resolution of these grievances, especially the more significant ones that have been experienced in places like Numan in Adamawa State, and this has been resolved. 'At the moment, there is currently no backward integration programme in which the host community has restricted access to a significant proportion of land in the country,' he added. The Executive Secretary also informed the gathering that as a Council, the NSDC is working on getting comprehensive financing support to aid the development of the industry and in addition to help the existing operators lower the cost of irrigation. 'One of the things we need to do is aggressive pushing of a sugar sector development fund, as well as securing the kind of guarantees that will allow the cost of borrowing to come down. 'Also, to possibly extend whatever support we can provide around the issues of irrigation facilities, not necessarily as grants, but just to lower the overall cost of irrigation infrastructure.' Emphasising the need for severe sanctions for underperformance, Mr. Bakrin said: 'We believe that the two critical things that must happen is that the operators must act immediately to stop the deterioration in the output of their current operations, especially around the issues of agronomic and factory practices, which are clearly below global norms and standards. 'They must also actively expand their existing brownfield operations. In addition, we believe that without going into the specifics of individual companies for confidential reasons, the operators need to, as a matter of urgency, take a much more aggressive approach to expanding their BIP programmes to ensure that they are able to deliver on the NSMP targets. 'We believe that basic improvements in agronomics and factory practices can take annual raw sugar production to 200,000 metric tonnes in the short term even from the current land planted with sugarcane,' he noted. The NSDC boss argued that while the business of importation of raw sugar and refining at the existing facilities owned by the major operators may seem profitable on the surface, the more challenging work of actually growing sugar cane and processing it in Nigeria is ultimately more sustainable and rewarding for the operators and the country at large. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
42 minutes ago
- Zawya
China fashion retailer Shein to file confidentially for Hong Kong IPO in rare move, sources say
China-founded fast-fashion retailer Shein plans to file a draft prospectus confidentially for its Hong Kong listing, marking a rare departure from the usual practice of companies making public filings of IPO documents, three sources with knowledge of the matter said. Shein aims to submit the filing confidentially as soon as this week, one of the sources said. A second source said the filing was expected to be made by Monday. Shein's confidential filing, if approved, would represent a waiver of one of the main listing rules by the Hong Kong exchange for one of the world's most closely-watched IPO candidates, and possibly the largest in the city this year, two of the sources said. The filing will come as the company, which sells low-priced apparel such as $5 dresses and $10 jeans in around 150 countries, makes its third attempt to go public, more than 18 months after it first filed for a U.S. IPO in late 2023. Confidential filings enable companies to keep vital operational and financial information under wraps for longer and allow them to go through the regulatory review process without public disclosure. Hong Kong's listing rules permit confidential filings for secondary listings by companies already listed on recognised overseas exchanges, such as the New York Stock Exchange or Nasdaq. The exchange could also waive or modify the publication requirements in a spinoff from an overseas listed parent upon application by a new applicant, the listing rules show. While this practice is common for IPO applicants in the U.S., it remains relatively rare in Hong Kong, where high-profile IPOs have included Chinese tech giants Xiaomi and Meituan, which both filed publicly for their floats. The sources spoke to Reuters on the condition of anonymity as they were not authorised to speak to the media. Shein, founded by China-born entrepreneur Sky Xu, did not reply to a request for comment. The Hong Kong stock exchange declined to comment on individual companies. Documents, including financials, related to Shein's IPO will remain undisclosed until the company passes a hearing with the Hong Kong stock exchange, which is the final step in the city's regulatory approval process. Prior to that final step, Shein must secure an approval from the China Securities Regulatory Commission (CSRC) to go ahead with the Hong Kong IPO. It is not known if Shein has already secured a verbal nod from the Chinese securities regulator. The CSRC did not respond to Reuters request for comment. Reuters first reported last month, citing sources, that Shein was working towards a listing in Hong Kong after its proposed London IPO failed to secure the green light from Chinese regulators. The New York attempt also did not receive CSRC approval, Reuters previously reported. REGULATORY APPROVAL Shein's confidential submission of the prospectus enables Hong Kong and mainland Chinese regulators to assess the IPO application, raise their questions to Shein and prepare it for regulatory approval privately, the sources said. The regulators would be able to do that before public, including potential institutional investors', scrutiny of its application materials, including risk factors, they added. The filing would come against the backdrop of Shein grappling with the knock-on impacts of the Sino-U.S. trade war after U.S. President Donald Trump ended duty-free treatment of ecommerce parcels and hiked tariffs on Chinese goods, hurting its business in the U.S., its biggest market. Shein was valued at $66 billion during its pre-IPO fundraising round in 2023, down by a third from a funding round one year earlier. Its eventual IPO valuation will hinge on the impact of the tariff changes, sources have said. RISK DISCLOSURES A Shein listing would help Hong Kong, which saw $12.8 billion worth of IPOs and second listings in the first half, re-establish its credibility as a global fundraising centre at a time of major volatility stoked by U.S. trade policy changes. Shein, founded in mainland China in 2012, is hoping to succeed in Hong Kong after failed attempts to list in New York and then London, where Britain's financial regulator approved the listing. Shein will have to file with the CSRC within three working days after submitting its IPO application in Hong Kong, in line with Beijing's rules for Chinese firms seeking offshore listings. Shein shifted headquarters from China to Singapore in 2022 and does not own or operate any factories, but remains subject to Chinese IPO rules because its products are mostly made by a network of 7,000 third-party suppliers in China, sources have said. The CSRC applies the rules on a "substance over form" basis, granting it discretion on when and how to implement them. A draft prospectus would normally disclose key risks to a company including those linked to its supply chain. Shein has faced allegations from politicians and campaigners that its supply chain in China is linked to forced labour of Uyghur minorities in Xinjiang, a highly contentious issue for Beijing, which denies any abuses in the cotton-producing province. The U.S. has a ban in place on imports of products made using forced labour from Xinjiang, and Shein has said it does not allow its suppliers to use Chinese cotton in U.S.-bound products. Shein has said its supplier code of conduct prohibiting forced labour applies worldwide.
Zawya
42 minutes ago
- Zawya
Nigeria: New tax regime's implementation to commence January 2026 — FG
President Bola Tinubu on Thursday signed into law four tax reform bills on key areas of Nigeria's fiscal and revenue framework. The bills passed by the National Assembly were signed during a ceremony held at the Aso Rock Presidential Villa, Abuja. The government has announced that the implementation of the new tax laws will commence on 1 January 2026, giving stakeholders a six-month transition period to prepare. The Federal Inland Revenue Service (FIRS) is, by presidential assent to the bills, now known as the Nigerian Revenue Service (NRS), as revealed by its Chairman, Zacch Adedeji. The bills are: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill. The bills, which generated a lot of controversy, were passed by the National Assembly after months of consultations with various interest groups and stakeholders. 'When the new tax laws become operational, they are expected to significantly transform tax administration in the country, leading to increased revenue generation, improved business environment, and a boost in domestic and foreign investments,' Onanuga said. The presidential assent to the bills was witnessed by the Senate President, the Speaker of the House of Representatives, the Senate Majority Leader, the House Majority Leader, the Chairman of the Senate Committee on Finance, and his House counterpart. The Chairman of the Governors' Forum, Abdulrahman Abdulrazaq of Kwara State; the Chairman of the Progressives Governors' Forum, Hope Uzodinma of Imo State; the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; and the Attorney General of the Federation, Lateef Fagbemi, were also at the ceremony. One of the four bills is the Nigeria Tax Bill (Ease of Doing Business), which aims to consolidate Nigeria's fragmented tax laws into a harmonised statute. 'By reducing the multiplicity of taxes and eliminating duplication, the bill will enhance the ease of doing business, reduce taxpayer compliance burdens, and create a more predictable fiscal environment,' said the Presidency in a statement on Wednesday night. The second bill, the Nigeria Tax Administration Bill, will establish a uniform legal and operational framework for tax administration across federal, state, and local governments. The Nigeria Revenue Service (Establishment) Bill, the third bill, repeals the current Federal Inland Revenue Service Act and creates a more autonomous and performance-driven national revenue agency—the Nigeria Revenue Service. It defines the NRS's expanded mandate, including non-tax revenue collection, and lays out transparency, accountability, and efficiency mechanisms. The fourth bill is the Joint Revenue Board (Establishment) Bill. It provides for a formal governance structure to facilitate cooperation between revenue authorities at all levels of government. It introduces essential oversight mechanisms, including the establishment of a Tax Appeal Tribunal and an Office of the Tax Ombudsman. Meanwhile, the Chairman of the Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji, and the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, commended President Bola Tinubu's bold leadership in signing into law four historic tax reform bills, setting the stage for a complete overhaul of Nigeria's fiscal architecture. Speaking at a post-signing press briefing at the Presidential Villa, Abuja, Adedeji described the moment as 'a dream come true' and hailed the President's 'vision, courage, and commitment' to modernising the tax system. The four bills—the Nigeria Tax Reform Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill—were signed into law by Tinubu following extensive consultations and legislative processes. Adedeji announced that the implementation of the new tax laws will commence on 1 January 2026, giving stakeholders a six-month transition period to prepare. 'The effective date for implementation has been set for 1 January 2026, as announced by the relevant ministry,' he said. 'This gives us a full six-month window for robust sensitisation, thorough planning, and alignment with the government's fiscal calendar. A reform of this magnitude cannot be rushed.' He also revealed that the Federal Inland Revenue Service would now transition into the Nigeria Revenue Service (NRS) with an expanded mandate covering both tax and non-tax revenue, promising greater efficiency and transparency. In his remarks, Oyedele stressed that the reforms are pro-growth and pro-poor, aimed at improving equity, reducing burdens on vulnerable Nigerians, and stimulating economic development. 'Over one-third of workers in both public and private sectors will now be completely exempt from Personal Income Tax. More than 90% of micro, small, and nano enterprises are also exempt from Corporate Income Tax, VAT, and PAYE obligations,' he noted. Most significantly, Oyedele announced that essential goods and services, including food, healthcare, education, transportation, and accommodation, are now exempt from VAT, a move expected to lower the cost of living for millions of Nigerians. 'These essential categories account for over 80% of average household spending in Nigeria. By removing VAT, we're putting money back in the hands of ordinary people,' he added. Oyedele was clear that the tax reforms are not about increasing tax rates, but about closing loopholes, simplifying processes, and expanding the tax base through digitalisation. 'The new laws are designed to end discretionary waivers and ensure that tax incentives are accessible to all qualifying businesses, not just the well-connected,' he said. Speaking at the Presidential Villa shortly after the signing, House of Representatives member Hon. James Faleke and Senator Sani Mohammed praised the President's courage, especially in the face of initial resistance. Faleke said the National Assembly had taken its time to consult widely and harmonise over 70 disparate taxes across federal, state, and local governments. 'This is a product of deep consultations and compromise. And laws are not static. We're open to amending them if need be, in the national interest,' he said. Senator Sani Mohammed likened the reform to the removal of fuel subsidy, another tough but necessary decision by the Tinubu administration. 'This isn't about raising taxes. It's about plugging leakages, leveraging technology, and ensuring fair contributions across all sectors,' he said, adding that state and local governments should expect increased revenue from 2026 onward. Both Adedeji and Oyedele acknowledged that implementation will be the real test. 'No matter how beautiful the law, it's meaningless without proper execution,' Oyedele cautioned. 'Now is the time to move from legislation to action, and that will require a united effort from both public and private sectors.' Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
