Africa: Japan Plans to Grow Africa Investments to Ease Reliance On China

• Japan is intensifying efforts to deepen trade and investment ties with Africa, moving beyond its traditional role as a donor
• The push follows a shift in Japan’s economic outlook as the country emerges from decades of deflation
• Notable moves include Mitsui & Co.’s winning bid for a stake in First Quantum Minerals’ Zambian copper mines and Hitachi’s development of hybrid trucks

Japan is intensifying efforts to deepen trade and investment ties with Africa, moving beyond its traditional role as a donor to position its companies as key players on the continent. The push follows a shift in Japan’s economic outlook as the country emerges from decades of deflation, reigniting private-sector appetite for global expansion.

Takehiko Matsuo, vice-minister for international affairs at Japan’s Ministry of Economy, Trade and Industry, told Bloomberg that Japanese businesses are becoming more proactive about entering global markets, and Africa is now on their radar.

“Africa is one of the destinations where we expect Japanese companies” to grow, Matsuo said.

While Africa currently accounts for just 0.5% of Japan’s total foreign direct investment, interest is growing, particularly in sectors like critical minerals, base metals, and rare earths. Tokyo is seeking to reduce dependence on China, Africa’s largest trading partner.

Notable moves include Mitsui & Co.’s winning bid for a stake in First Quantum Minerals’ Zambian copper mines and Hitachi’s development of hybrid trucks to support greener mining. Japan’s investment comes at a time when U.S. foreign aid is declining under President Trump’s second term, making Tokyo’s sustained engagement more strategically relevant for African economies.