Japan is increasing its business activities in Africa to lower its dependence on China for critical minerals and rare earth elements. This move comes as the Japanese government encourages its companies to explore new markets and trade partnerships. The shift is part of a larger effort to strengthen Japan’s economy and reduce risks linked to depending on a single country for important resources.
The Japanese economy has recently shown signs of recovery after nearly 30 years of deflation. As a result, more private companies are now willing to invest abroad. The government is supporting these efforts, especially in Africa, where Japanese businesses have not had a strong presence in the past. So far, only 0.5% of Japan’s foreign direct investment has gone to Africa. Most of the country’s overseas investments have traditionally been directed toward the United States and the United Kingdom.
Africa presents a major opportunity for Japan. The continent has large reserves of base metals, rare earths, and other critical minerals needed for electronics, electric vehicles, and clean energy projects. By 2050, one in every four people in the world will be African. Studies also suggest that by 2075, six of the world’s top economies could come from the Global South, including Nigeria. Japan’s focus on Africa is a way to prepare for this future.
China currently dominates the supply of rare earths and is Africa’s biggest trading partner. Japan has depended heavily on China for these resources. But as trade tensions grow between China and Western countries, Japan is looking for more stable and diverse supply options. Working directly with African countries could help Japan build more secure and long-term mineral supply chains.
Japan’s interest in Africa is not only about mining. Japanese companies are also bringing new technologies and services to the continent. Some firms, backed by government support, are entering healthcare, recycling, and green energy sectors. For example, Fujifilm is working on preventive healthcare projects in regions where health insurance is still rare. Toyota Tsusho is exploring ways to recycle vehicles. Hitachi is developing cleaner machinery for use in mining. These efforts are aimed at supporting Africa’s growth while helping Japan meet its environmental goals.
Green hydrogen and ammonia are also part of Japan’s energy plans. These clean fuels are important for reducing carbon emissions in industries. Japan is interested in working with African countries to produce and use these resources, especially in sectors like transport and manufacturing.
In addition to private business projects, Japan is building stronger connections through public initiatives. The government recently launched a program to connect start-ups in Japan and Africa. This project aims to boost innovation and create new products and services for both markets. It also helps young entrepreneurs gain access to resources and partnerships that were not available before.
Japan has long been a major donor to African countries. In 2022, it was the third-largest provider of official development aid to sub-Saharan Africa among OECD countries. Japan provided about 1.68 billion US dollars in aid that year. Unlike the United States and the United Kingdom, which have reduced some of their aid budgets, Japan has not announced any cuts. In fact, it plans to continue and even expand its support.
Later this year, Japan will host the ninth Tokyo International Conference on African Development. The summit will take place in Yokohama in August and is expected to be the largest meeting between Japan and African countries so far. Government officials, business leaders, and development experts will come together to discuss future cooperation. The event will likely lead to new business deals, partnerships, and investment plans.
Japan’s push into Africa comes at a time when the continent is facing several challenges, including a drop in aid from other countries and the need for private investment. At the same time, Africa offers many opportunities in areas such as mining, renewable energy, healthcare, and digital services. Japan’s long-term approach, which includes both investment and development aid, could help build trust and create lasting partnerships.
This growing relationship between Japan and Africa could bring big benefits to both sides. Japan will gain access to important resources and new markets. Africa will receive technology, jobs, and funding that can support development. As more Japanese companies enter the continent, the hope is that trade and cooperation will continue to grow.
