Japan uses technology to forge Africa ties

BY AGENCIES

JAPAN and Africa should establish a new global supply chain together, utilising Africa's mineral resources and Japan's 'intellectual resources', says Tadahiro Matsushita, Japan's Senior Vice Minister of Economy, Trade and Industry.

Addressing a presentation at the Mining Indaba, Matsushita said Japan is a country with few natural resources and which imports most of its resources from overseas. However, Japan possesses "intellectual resources' or technology, and it is this technology that has brought remarkable growth to the country since 1945.

Making use of such intellectual resources, Japanese industry has constructed many factories in Asia to produce automobiles and electrical appliances. An increasing number of private companies are intending to expand their activities into Africa as well, he said.

He pointed out that in 2001 the balance of Japanese investment in Africa was $0.6 billion, which then grew to $6.1 billion by 2010. New investments in rare metals, coal, factories and power plants are now making progress and when these projects are complete, further dramatic growth will be achieved, he said.

He said considering the importance of economic growth in Africa, Japan intends to reinforce its support for human needs, such as food production, education, medical and health care, water and sanitation, but also with growing infrastructure needs, such as electrical power and transportation.

"This will offer more opportunity for Japan to assist in constructing a base toward further economic growth of African countries. I firmly believe that such support will bring us win-win outcomes."

He highlighted that in recent years investment in Africa's mineral resources by Japanese investors has gained traction. "Due to a tightening market as well as stabilisation of political and economic conditions in Africa, investment in rare metals is gaining much attention," he said.

He cited the examples of Sumitomo Corporation which has joined the Ambatovy Nickel Project in Madagascar and Itochu Corporation joining the Platreef PGM exploration project in South Africa. In addition, Nippon Steel has joined the Revuboe Coking Coal project in Mozambique.