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Why should South Africans set their eyes on TICAD?

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The Tokyo International Conference on African Development is a long-running business conference that invites government officials, investors, and entrepreneurs all over the globe, aiming to provide insight and interest in African markets. Co-hosted by the Japanese Ministry of Foreign Affairs, United Nations and African Union Commission, TICAD is a space where Africa’s rich agriculture, mineral and manufacturing sectors are recognized as integral in global trade. Since 1993, the conference was a hotbed for African-Japan relations, investigating ways in which development can expand key areas like food and healthcare across the region. This move was to direct preconceptions that Africa was full of malaise, seeing the continent as a land full of successful professionals, talented workforces and overflowing with lucrative potential. Around TICAD’s conception, the Cold War prevented economic interest from growing in the region. Japan moved against this view in lieu of optimism; Africa is important just like any other part of the world. For over 20 years, TICAD has brought not only grant-aids but also technological innovation in Africa, bringing thousands of schools, healthcare facilities and shelter with basic sanitation across the board. Throughout the years, Japan joined 48 African countries during the conference, exhibiting the latest technology, business trends, economic insights, and solutions to emerging problems both regions face. African leaders can introduce investment opportunities to spread their business globally, but Japanese organizations can also see what lucrative industries they may operate in, making international cooperation more efficient. Moreover, private, and public sectors together not only promote mutual trade between nations but also bring stakeholders together who can drive Africa’s development forward, so much so that African professionals formed the New Partnership for Africa’s Development (NEPAD) Plan. TICAD forums open the floor for businesses to brainstorm solutions to various challenges such as poverty, hunger, and healthcare. The latter was more particular in the region during COVID-19, which formed the basis of TICAD 8 in Tunisia. Accountability is also at the forefront of TICAD. Follow-up meetings where status of implementations goals are confirmed by representatives, proving that African-Japan business partners stick to their word. As TICAD 9 is around the corner, what should South African businesses expect? Various seminars on sustainability and developmental challenges will be conducted along with tons of exhibitions both from Japan and Africa in industries such as food, fishery, healthcare, manufacturing, and pop culture. E-sports (which has begun to rise locally), anime and cross-cultural goods will feature this year, an exhilarating platform for local and international businesses to find investment opportunities in a highly demanding area. Japan’s strength manufacturing, food and biology is also noteworthy. If domestic entrepreneurs wish to thrive globally, these sectors are the most important. What South African should also be excited about are the seminars; ministers, officials and business leaders alike join to discuss viable solutions to various regional challenges. Local or not, these issues affect the entire globe. With countries like Nigeria, Kenya, Egypt and Japan, South Africa could partake in projects that can address problems that can lead to a better tomorrow. TICAD 9 will take place in Yokohama, Japan from the 20th to 22nd August, organized by the Japan External Trade Organization (JETRO) and the Japan Business Council for Africa (JBCA).

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Japanese investors muscle in on African start-up scene

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Japanese investors at GITEX Africa say they are taking an increasing interest in African markets partly because of the demographic and economic issues the East Asian country is facing. Japanese public and private enterprises, led by the Japan External Trade Organization (JETRO), had a strong presence at a leading Africa-focused tech event in Marrakech, Morocco, in recent weeks as the East Asian powerhouse looks to the continent’s markets for new sources of growth. Japan’s visible presence at GITEX Africa comes at a time when the country’s investment flows into Africa are steadily increasing. Japanese investment into Africa reached around $3bn in 2020 and more than doubled to over $7.5bn the following year. Sadaharu Saiki, a speaker and investor attending GITEX Africa, moved from Tokyo to Cairo in 2022 to found Sunny Side Venture Partners, a venture capital firm investing in start-ups in North Africa and across the continent. He tells African Business that “this is the most exciting time to get involved in African markets.” “While the venture capital asset class has faced challenging times due to the economic crises caused by the Covid-19 pandemic and Russia’s war in Ukraine, since 2020 Africa has seen huge growth in this sector. Africa has had the biggest growth in this sector amongst all the regions in the world, including North America, the Asia-Pacific, Europe, and Latin America,” Saiki adds. “The overall trend is very positive.” Carrot and stick Saiki says that Japanese investors are taking an increasing interest in African markets partly because of the demographic and economic issues the East Asian country is facing. “Japan is likely to see a significant decline in population over the coming decades and that will inevitably mean a decline in economic growth. Nearly half of the population is already aged 50 or more, and this is predicted to increase to 54% by 2035. Japan is the second oldest country in the world after Monaco,” he explains. “Africa has the complete opposite situation. It has a population of 1.4bn and is one of the fastest-growing markets in terms of population. A bigger population will mean a bigger economy. Japan needs to find another market to keep growing despite a declining population,” Saiki adds. “Japanese investors tend to be relatively conservative in general and so far, only a small number of Japanese companies have expanded into Africa. But it is clear that Africa is the answer to many of Japan’s economic problems – and that is the reason why we as venture capitalists are investing in African start-ups, hoping to catalyse more collaborations between Africa and Japan in the future.” According to a recent report from Japan’s Ministry of Foreign Affairs, there were 927 Japanese companies active in Africa in 2022, up from 520 in 2010. Emma Ruiters, a senior analyst at the Tony Blair Institute in London, previously told African Business that “we can see that Japan’s investment levels into Africa have increased and that Japan is changing the terms of engagement with the continent.” “Japanese corporations and investors are incredibly cash rich and so they are able to invest – Japan was the world’s largest bilateral lender until 2019, when it was overtaken by China.” Liquidity issues Still, Saiki notes that there are several challenges in the African market which need to be resolved in order to facilitate increased Japanese investment. In the venture capital space, a lack of a market in initial public offerings (IPOs) and a limited number of mergers and acquisitions (M&A) or secondary transactions mean that it is difficult for investors to exit their investments and cash in their profits. He says that “these liquidity issues are a barrier for many.” “While some African companies are considering floating in the Middle East, as well as in the US or Europe, it is clear that we need more liquidity options to boost the attractiveness of African markets for investors,” Saiki adds. While there are still issues to be resolved, Saiki says that Africa is becoming of increased interest to the Japanese public and private sector. “There are big opportunities to solve fundamental problems and help unleash Africa’s full potential. African start-ups are working on essential issues and solving fundamental problems. The Japanese private sector’s involvement in Africa is still minimal and there are a lot more to be done,” he says. “Japan is uniquely positioned as a country which experienced rapid economic growth just over the last several decades. We may know what it takes to grow.”

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Japanese private sector gains ground in Africa but caution still reigns

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The Japanese government has tried to capitalise on the power of the private sector to advance its foreign policy in Africa, but investors remain notoriously risk-averse. With Africa now the venue of increasingly high levels of geopolitical competition, “Africa-Plus-One” summits between a nation state and the continent have become commonplace. The Forum on China-Africa Cooperation, for example, last took place in 2021, while, in December 2022, Washington played host to the US-Africa Leaders Summit. Last year saw both the Russia-Africa Summit in St Petersburg and the Saudi-Arab-African Economic Conference in Riyadh. Middle-ranking powers, such as South Korea and Turkey, have also sought to establish such dialogues with the African continent. Practically every global “great power” – or countries which aspire to that status – are looking to host such summits as they recognise that Africa is home to some of the world’s fastest growing markets and natural resources that are critical to the world’s attempts to transition to a greener economy. However, these summits are all based on the style of diplomacy that was first established by a country that recognised Africa’s geopolitical potential over thirty years ago – Japan. The Tokyo International Conference on Africa’s Development (TICAD) was first held in 1993. At the time, the international community was beginning to dedicate less time and fewer resources to Africa. However, Japan set up the TICAD summit with the aim of establishing new relationships in a volatile post-Cold War world. Seifudein Adem, professor of global studies at Doshisha University in Kyoto, explains that “the Tokyo International Conference on Africa’s Development (TICAD) has been extremely successful in one respect – inspiring summit diplomacy.” “TICAD deserves credit for, apart from other things, reviving international interest in Africa’s development, which was declining in the 1990s,” he adds. Japan’s economic experience Since the establishment of TICAD, Japan’s foreign policy in Africa has sought to leverage Tokyo’s own experience of rapid economic growth. After the Second World War, in which Japan was both defeated and economically devastated, the East Asian country managed to expand its industrial production massively and produce cheap goods for both export and consumption in its huge domestic market. South Korea’s similar economic experiences following the Korean War is something which Seoul has also sought to emphasise during its recent attempts to form stronger relationships in Africa. Adem suggests that, through meetings such as TICAD, Japan’s journey could be used to inspire Africa’s own attempts to achieve higher rates of economic development and growth. “The experience of Japan in economic modernisation reveals that it successfully pursued three strategies,” Adem tells African Business. “The first was the strategy of diversification. The Japanese absorbed Western skills and adopted Western institutions from as many diverse sources as possible. The second was domestication – making foreign products, institutions, and ideas more relevant or useful to local needs. Thirdly, Japan pursued indigenisation – the fuller use of domestically available cultural, human, and material resources.” “These are lessons for Africa about how to learn, about what to learn, and about how to learn fast.” Encouraging Japan’s private sector While Japan still engages in various humanitarian and development activities in Africa – just last month Tokyo announced an $34m donation to the World Food Programme to provide emergency support to 15 countries in Sub-Saharan Africa – over time the Japanese government has sought to focus more on the opportunities available in Africa for Japan’s private sector. Emma Ruiters, a senior analyst at the Tony Blair Institute in London, tells African Business that Japan’s economic model in the post-war period was based on having a weak Japanese yen, which allowed its exports to be competitive. However, as Japan’s economy became more mature and its currency stronger, Tokyo began looking to invest more in international markets, including Africa. She believes these economic dynamics partly explain why engagement between Africa and Japan “is moving away from being based on development and is increasingly driven by the private sector.” According to a recent report from Japan’s Ministry of Foreign Affairs, there were 927 Japanese companies active in Africa in 2022 – up from 520 in 2010. “We can see that Japan’s investment levels into Africa have increased and that Japan is changing the terms of engagement with the continent,” Ruiters says. “Japanese corporations and investors are incredibly cash rich and so they are able to invest – Japan was the world’s largest bilateral lender until 2018, when it was overtaken by China.” “Japan has an ageing population but is cash rich. African countries are often young, fast-growing economies, but lack capital. In that regard, it is without doubt a great partnership,” she notes. This emphasis on the potential of private sector activity sets Japan apart countries which focus on inter-government aid and offers competition to China, whose growing influence in Africa has often caused “anxiety” for policymakers in Tokyo, according to Adem. “Japanese companies have been doing quite a lot of strategic mergers and acquisitions to try and make an impact in the African market,” Ruiters says. “They have been looking to acquire strategic local partners,” she explains. “This is very different to how China is operating in Africa at the moment – China’s activities have been focused on the inter-governmental and infrastructure side.” “As Japan has very low unemployment, Japanese companies in Africa tends to hire locals, as opposed to when China comes in and they bring in quite a significant Chinese contingent,” Ruiters adds. “Japan is much quieter, there is no hype, there is not a big Japanese presence. But that is something that is admirable for many in Africa.” The Japanese government has certainly tried to capitalise on the power of the private sector to advance its foreign policy in Africa. The Japan International Cooperation Agency (JICA), for example, has launched its “NINJA Accelerator” in Kenya, which supports Kenyan start-ups and helps them gain access to venture capitalists and investors in Japan and around the world. Japanese companies and investors are increasingly seeking opportunities abroad. Japan’s Government Pension Investment Fund (GPIF), the largest pension fund in the world, is adding foreign equities to

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Japan’s Foreign Direct Investment into Africa’s Digital Economy is Rising

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In recent years, Japanese Foreign Direct Investment (FDI) has been rising in African countries. A new development has been that Japanese FDI has been flowing to information and communications technology (ICT) & Digital Technologies. African countries are growing rapidly which is likely underpinning rising investment, but African economic development is already demonstrating some points of departure from the industrialisation or development experiences of the late industrializers in Europe and Asia. Indeed, digital technologies have fuelled the rise of new business models across the continent where e-commerce, e-hailing and mobile money are increasingly ubiquitous even in underdeveloped settings. Indicators show consistent levels of digital & ICT technology adoption across African countries, suggesting strong signs of emergence in this space. However, digital ecosystems require high levels of capital investment and institutional development, which are increasingly becoming minimum standards of competitive industry. Japan’s modern relations with African countries are marked by a growing trend of investment and commitment to economic development through foreign aid. However, there is evidence that, since 2016, there has increasingly been a shift towards public-private partnerships as well as increased interest from the Japanese private sector. This has been driven by public institutions such as the Japan International Cooperation Agency (JICA) as much as the private sector, and it has also seemingly been an organic transition, driven by domestic factors in the Japanese economy as well as the high growth of African economies. Overall, as Japanese global FDI, outflows have been rising steadily since the early 2000s. Thus, with a global uptick in outflows, it is unsurprising that African countries are also experiencing increased FDI flows. In 2021, Japanese FDI net flows to Africa sat at US$3.5 billion.[1] For comparison, in 2018, Chinese FDI flows to Africa sat at US$5.5 billion.[2] Headwinds in the Japanese economy may be part of the reason for rising FDI. Manufacturing is slowing, Japan’s expansionary monetary policy regime continues and the yen is at its weakest in 2022 since the 1990s.[3] Amidst Prime Minister Kishida’s push for a New Capitalism, domestically, Japan is facing its own push towards digital transformation, which the government hopes to guide through the conceptualisation of Society 5.0 which envisions the resolution of social problems and economic advancement through the application of new technologies. Masayoshi Son is (in)famous for his Softbank Vision fund, at US$100 billion it is the largest tech-focused investment fund in the world.[4] Rising global Japanese FDI may reflect the significant cash reserves of Japanese corporations held on their balance sheets. 53% of Japanese companies on the Topix index are net cash, compared to only 14% of US companies in the S&P 500.[5] Non-financial companies on the Topix 500 maintain US$2.6 trillion of tangible assets.[6] Japanese firms are notable in that financing is still often derived from relational banking rather than international capital markets or the stock market thus resulting in Japan’s remarkably low levels of FDI. This has enabled Japanese companies to limit cash dividends and retain earnings. Further evidence of a government push to unlock corporate savings is, in 2022, Japan’s government and business sector pushed for increased planned capital investment, which includes encouragement of global expansion for Japanese startups. Japanese companies are aiming to invest 25% more into equipment, real estate and other physical assets from 2022 to advance in decarbonisation.[7] The Government Pension Investment Fund (GPIF) of Japan, one of the world’s largest institutional investors, will begin investing in Japanese startups.[8] Thus, it’s likely these reforms including Shinzo Abe’s corporate governance reforms will have had some acceleratory effects on FDI as the reforms are supportive of outward-bound M&A (mergers and acquisitions) through tax reforms and deregulation as reflected in increasing outflows in FDI.[9] Simultaneously, the Japanese economy has also encountered difficulties in the face of digitalisation. Deindustrialisation, increased financialisation, inequality and rising job insecurity have also become more pronounced in Japan. Japan has also lost competitiveness in its historical areas of ‘comparative advantage’ such as electronics and telecommunications.[10] Japanese businesses have begun using M&A as a means to build out new technology niches and expand their market presence to seek new customers.[11] Thus, they are becoming increasingly global. Japanese banks are also acquiring foreign banks and developing M&A advisory businesses for foreign markets. There is also the phenomenon of ‘Japan Inside’ where Japanese high-value manufactures are critical inputs to the production processes of even highly industrialised South Korea and Taiwan.[12] Japanese companies are exiting non-core businesses and redefining business focusses. An example may be Sony’s recent diversification into a non-traditional industry, namely, into the automobile sector through imaging sensors. In 2022, Sony launched an Electric Vehicle (EV) division, as well as a joint venture with Honda to make cars.[13] Correspondingly, Japanese private sector actors, namely trading companies and Venture Capital (VC) funds, have utilised M&A, private equity and venture capital as tools to enter the African market, namely in sectors ranging from healthcare, logistics and mobility, and energy. Largely, however, China has not penetrated the market in the same way. In the VC space in particular, the USA, EU countries and the UK are seen as competitors by Japanese firms. It can be argued that part of the reason for Japan’s struggles to make itself prominent in the African market is precisely because of the fierce competition in both the public and private sector from other global powers. But it is undeniable that Japan’s own, unique economic imperatives are increasingly shaping its interest in Africa, rather than external influences, and its business practices remain unique. Several Africa-focused VC firms have emerged such as Samurai Incubate, Leapfrog Ventures, and Kepple Africa, amongst others. Regardless of their intentions, unlike their success in Asia, Japanese investors have long struggled to penetrate the African market. Interviews that I conducted with firms, as well as other reports, suggest that initial forays into the African market, with the business practices of South Asia in mind, were fruitless and fraught with miscommunication. There was some degree of information asymmetry on both sides, which led to frustrations. Nonetheless, new ways of partnering and doing business are at present being sought by

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Japan offers nearly $60bn chance to Africa’s start-ups amid fierce competition

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There has been renewed global interest in the continent, with large, young populations as potential consumer markets While China is experiencing a slowdown, the Financial Times recently named Japan one of the “Economic Wonders of a Worried World”. Is there a new sun rising in the east, and to whom should African nations look for increased investment? There has been renewed global interest in African countries, with large, young populations as potential consumer markets. Many African countries have rapidly growing economies with a burgeoning affluent class. The UN has shown that of the world’s top 30 fastest-growing cities between 2018-2035, 21 will be in Africa, including Kampala, Uganda, and Abuja, Nigeria. African cities are urbanising the fastest, which is generating new demand for goods, services and infrastructure. Coupled with positive population growth and a young population, many commentators see African countries as possessing a demographic dividend that will further fuel growth, while the African Continental Free-Trade Agreement (AfCFTA) will unlock intra-African trade potential across the continent. Industrialised nations have taken note, competing to secure access and market share. Facing an ageing population and declining levels of nominal domestic growth, low-debt and cash-rich Japanese companies see African countries as promising markets. Japanese investment into has Africa risen significantly in three stages: from 1983 to 2021, Japanese foreign direct investment (FDI) increased 2,575%, and in 2007/8 as well as 2015/16 there were signs of notable acceleration. The late Shinzo Abe’s leadership in advocating for business advancement into African markets drummed up interest from the Japanese private sector, and rising competition from other international actors in the continent due to demonstrable high growth is starting to make investors sit up. Japan’s engagement on the continent is not new. This year, the eighth Tokyo International Conference on African Development was held, hosting over 300 business leaders and 50 African heads of state. The message was overwhelmingly optimistic, naming the high return on FDI in Africa at 11.4% above the global average of 7.1%. Fierce competition Further, Japanese investors are no longer looking solely at infrastructure. Rather, they are investing in African start-ups and private companies, as well as Africa’s rapid digital transformation. They tend to favour the traditional sectors of consumer goods, infrastructure and logistics, but also increasingly fintech and autonomous vehicles. China has not penetrated the market in the same way. In the venture capital (VC) space it is the US, EU countries and the UK that are seen as competitors by Japanese firms. It can be argued that part of the reason for Japan’s struggle to make itself prominent in the African market is precisely because of the fierce competition in the public and private sectors from other global powers. However, it is undeniable that Japan’s own, unique economic imperatives are increasingly shaping its interest in Africa. Several Africa-focused VC firms have emerged, such as Samurai Incubate, Leapfrog Ventures, and Kepple Africa. Japan was and is a major funder of economic development, growth and industrialisation in Asia, from South Korea to Thailand and beyond. However, Japanese investors have long struggled to penetrate the African market. Even so, it is increasingly being perceived as a priority due to saturation of Japanese engagement in South East Asia and high-levels of competition from other late developers in this increasingly attractive region. Initial forays into the African market, with the business practices of South Asia in mind, were fruitless and fraught with miscommunication. There was some degree of information asymmetry on both sides, which led to frustrations. Yet, new ways of partnering and doing business are being sought by Japanese firms in the African market. Many analysts have emphasised the ageing, feeble Japanese economy in recent years. This is not inaccurate, but often lacks nuance. Masayoshi Son is (in)famous for his Softbank Vision fund, at $100bn the world’s largest tech-focused investment fund. This is not unique. Rising global Japanese FDI may reflect the significant cash reserves of Japanese corporations held on their balance sheets. Acceleratory effects About 53% of Japanese companies on the Topix Index are net cash, compared with only 14% of US companies in the S&P 500. Non-financial companies on the Topix 500 maintain $2.6-trillion of tangible assets. Japanese firms are shifting towards increased market liberalisation. The government has also pushed to unlock corporate savings. This year Japan’s government and business sector are pushing for increased planned capital investment, which includes encouragement of global expansion for Japanese start-ups. Japanese companies are aiming to invest 25% more into equipment, real estate and other physical assets from 2022 to advance in decarbonisation. The Government Pension Investment Fund (GPIF) of Japan, one of the world’s largest institutional investors, will begin investing in Japanese start-ups. Thus, it’s likely these reforms, including Abe’s corporate governance reforms, will have had some acceleratory effects on FDI as the reforms are supportive of outward-bound M&A through tax reforms and deregulation, as reflected in increasing outflows in FDI. Under Abe’s third arrow of Abenomics, corporate governance reform has ensued, starting with the Japanese Stewardship Code in 2014 and the Corporate Governance Code of 2015. Japan’s challenges have also spurned a new global engagement strategy. Ulrike Schaede’s conceptualisation of the choose-and-focus approach describes Japanese businesses as using M&A as a means to build out new technology niches and expand their market presence to seek new customers. This has been through an increase in global M&A, in which Japanese firms are acquiring foreign firms as “an integral part of the second wave of choose-and-focus”. Japanese banks are also acquiring foreign banks and developing M&A advisory businesses for foreign markets. Companies are exiting noncore businesses and redefining business focuses. An example may be Sony’s recent diversification into a non-traditional industry, namely into the car sector through imaging sensors. In 2022, Sony launched an electric vehicle division and a joint venture with Honda to make cars. Correspondingly, Japanese private sector actors, namely trading companies and VC funds, have used M&A, private equity and venture capital as tools to enter the African market, in sectors ranging from

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SA needs to use its noodle to boost Japanese ties

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African countries and Japan have a natural synergy, and South Africa is no exception.   The African continent boasts the youngest population in the world with an average age of 17. The world’s fastest growing economies and fastest urbanising cities are all in Africa. But there is still a significant lack of investment, poverty and underdevelopment that plagues many African nations. But the lion is stirring. Japan, the world’s third biggest economy, is the world’s fastest aging society with more than 20% of its population over the age of 65. Nonetheless, Japan remains a capital rich, innovative country with a large population of about 110 million people, larger than the UK, France or Germany. Japan also boasts high rates of saving and its investors are seeking bankable business opportunities outside of an economy wracked by deflation. With these complementary challenges and opportunities, the future of Africa and Japan should certainly be closely linked. Already, Japan’s former prime minister Shinzo Abe, along with South Africa’s president and the head of Africa Union, Cyril Ramaphosa emphasised the need for closer connections between Japan and Africa through the Japan-Africa Business Forum in 2019. JICA, Japan’s foreign aid agency, a long term supporter of infrastructure projects in Africa, is investing more and more into digital economy, business, innovation and entrepreneurship opportunities across the continent through its Ninja business programme and other initiatives.  With South Africa’s critical economic and social challenges, Japan’s development initiatives could be impactful in the creation of new opportunities, youth employment and fulfilling livelihoods. South Africa and Japan already have a long, albeit little known history, as Dutch East Indian Company traders who had stopped in the Cape conveyed South African goods like animal skins and other items to the trading island of Dejima – the only open port in Japan during the 1600s that allowed trade with foreigners. That, arguably, makes South African one of Japan’s oldest trading partners. Today, Japan is South Africa’s sixth largest export market and 8th largest import market (2019). Bilateral trade between the two countries stands at $7.1 bn. In particular, Japanese companies like Toyota, Nissan, Isuzu and Mazda are key players in South Africa’s automotive industry which is a sector that is a significant contributor to GDP at 6.4%, comprises 27.6% of South Africa’s total manufacturing output and directly employs 110 000 people.  In 2020, more South Africans than ever are interested in Japanese culture, learning Japanese and buying Japanese products. This is in no small part due to the soft power of Japan magnified globally through entertainment, media and gaming. Since the 1990s, many South African children can remember growing up watching Japanese shows like Pokemon, Digimon, DragonballZ, Yu-Gi-Oh and others which played on SABC2 in the afternoon after school. Japanese foods like sushi and ramen, and increasingly, drinks like gin and whiskey are extremely popular in South Africa as well. However, chances to foster closer relationships with Japan are scarce. There are few opportunities to formally learn Japanese in South Africa. The University of Pretoria partnered with the Centre for Japanese Studies, established in 2011, the Centre is an organisation which promotes cooperation between South and Japan, and provides some introductory courses in Japanese, however, no universities in South Africa offer a major or beginner to advanced language courses in Japanese. Two programmes are available for South Africans who wish to work or study in Japan: the JET programme offered to those wishing to teach English in Japan; and, the ABE programme for Africans wishing to study in Japan at a Masters or PhD level. Companies like Samurai Incubate, And Africa and JETRO do provide opportunities for South African businesses to connect with Japanese investors and markets. There is, of course, still more to be done. More opportunities are required for South Africa and Japan to truly take advantage of the latent synergies that exist. The Japanese are notoriously risk-averse investors and may require some coaxing, reassurance and trust-building from African partners of the opportunities that are abound in Africa. At present, market intelligence and insight is limited. Thus, both South Africa and Japan may benefit from a closer understanding of each other’s cultures and values. As South Africans know well, knowing someone else’s language is an important way to show respect and gain trust. South Africans deeply resonate with the spirit of ubuntu which embodies compassion and humanity which is echoed in the Japanese concept of Wa which translates to harmony and underpins much of the empathy and unity of Japanese society. There is a critical need to foment further mutual cultural and linguistic understanding for further cooperation between Japanese and South African businesses, startups, investors, consumers, governments and civil society. Moreover, as Japan seeks opportunities for investment and collaboration across the African continent, South Africa must find ways to stand out from its peers. While the internet has provided many with opportunities to access language teachers and materials, this is largely still restricted to those who can afford it leaving many South Africans out of the loop. An impactful and equitable enabler may be to create channels of access to accredited Japanese language learning resources, funded exchange programmes for students to Japanese institutions, and wide-scale low cost platforms for business and entrepreneurs to access Japanese markets.  The first step to a fruitful collaboration is always understanding and friendship. While living in Japan, I met a Japanese man who gave an unusual answer to the question, posed in Japanese, ‘What do you know about South Africa?’ Until present, many answers had been around gold, diamonds, safari and Mandela. Unexpectedly, the man said that he loved South Africa because of the luxury Blue Train which many Japanese densha otaku – people who are obsessed with trains – were fascinated by. There is a sense that there is more to share beyond the conventional wisdom, and unique impact for South Africa to make in a still mysterious market. South Africa and Japan should look to strengthen a remarkable relationship in as many ways as possible. 

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