Japan eyes bigger investment footprint in South Africa

Japan is intensifying its economic and industrial investments in South Africa. This comes as the 2026 Japan and Africa Investment Forum sees renewed commitments from investors to bring business to the country. Organized by Standard Bank and Mizuho Bank, the forum discussed trends, opportunities, innovations, and financing that shape the future of trade and investment in the two nations.

Japan aims to maintain its status as South Africa's fifth-largest trade partner and seventh-largest investor. During the forum in Johannesburg, Mizuho Bank Senior Executive Officer Masahiko Ejima highlighted interest in energy, infrastructure, and technology as key areas for Japanese investment. Ejima noted that discussions focused on power and energy, infrastructure such as ports, rails, and roads, and the water sector.

The automobile industry, particularly Toyota, was also represented, with significant investments being made in that area.

Standard Bank's Zoya Sisulu emphasized the potential for South Africa to achieve a 3.5% economic growth and positive investment grades through meaningful partnerships, with the private sector playing a crucial role. Sisulu stressed the importance of attracting investment and creating a conducive environment for foreign capital and industrial capability in Africa, particularly South Africa.

The Japan External Trade Organisation's Shintaro Matoba emphasized that the partnership between Japan and South Africa can be mutually beneficial. Matoba encouraged local businesses to consider investing in Japan, suggesting that diversification is necessary due to the uncertain global situation. Both nations expressed appreciation for each other's agricultural products, tourism, advanced technology, startups, IT businesses, and digital industries.

South Africa has been working on economic reforms, and the presidency's Rudi Dicks noted that interest from other nations has increased, including those involved in investments. He highlighted that reforms in logistics areas, such as concessions in ports and investments in rail, have attracted attention from firms. Additionally, mineral assets continue to be of interest to firms looking to expand their presence in the country.