Japan is ramping up efforts to grow its business presence in Africa, shifting its long-standing image from a development donor to a strategic investor.
Driven by the country’s recovery from three decades of deflation, Japanese private sector leaders are showing a renewed appetite for global expansion and Africa is increasingly in their sights.
According to Takehiko Matsuo, Vice-Minister for International Affairs at Japan’s Ministry of Economy, Trade and Industry, the mindset among Japanese business leaders has shifted. “They are now much more proactive about expanding their business globally,” he told Bloomberg. “Africa is one of the destinations where we expect Japanese companies to grow their presence.”
While the U.S. and U.K. remain the top destinations for Japan’s foreign direct investment (FDI), Africa has historically received just 0.5% of the total. That may soon change.
Africa’s growing population and wealth of natural resources are attracting fresh interest from Tokyo. Japan is now targeting sectors such as critical minerals, base metals, and rare earths—areas that are vital for high-tech industries and where China currently dominates global supply chains.
Recent moves by major Japanese companies show this growing momentum. Trading giant Mitsui & Co. was the highest bidder for a stake in Zambia’s First Quantum Minerals copper mines. Similarly, Hitachi Construction Machinery is developing hybrid dump trucks to support greener mining operations on the continent.
Japan’s pivot also comes at a critical time for Africa. With foreign aid flows facing uncertainty—especially following the return of President Donald Trump to the White House and resulting U.S. aid cuts—African nations are seeking more trade and investment-focused partnerships.
Unlike the US, UK, or Russia, Japan has not indicated any plans to reduce its aid to Africa. This positions it as a stable, long-term partner, now looking to blend its traditional development support with stronger commercial ties.
As geopolitical shifts continue and the competition for influence in Africa intensifies, Japan’s evolving approach signals a strategic move which means reduced dependence on China, while unlocking new growth opportunities across one of the world’s fastest-growing regions.
