Summary of the Joint Mission for Promoting Trade and Investment for Africa (The South Mission)

September 12, 2008

The following is the summary of the Joint Mission for Promoting Trade and Investment for Africa, which visited Botswana, Mozambique, Madagascar, and South Africa from August 31 to September 9.

This Mission, which was announced by Mr. Yasuo Fukuda, Prime Minister of Japan, at the opening ceremony of TICAD IV in May, is the first big event to follow up the goal of boosting economic growth in Africa, which was shared by the participants in TICAD IV.

1. Dates

August 31, 2008 (Sun) –September 9, 2008 (Tue)

2. Countries visited

Botswana, Mozambique, Madagascar, and South Africa (in the order of being visited)

3. Participants (70 members in total)

-Mr. Takamori Yoshikawa, State Secretary for Economy, Trade and Industry (Head of Mission); Mr. Asahiko Mihara, Member of the House of Representatives; Mr. Daishiro Yamagiwa, Member of the House of Representatives

-The Ministry of Economy, Trade and Industry; the Ministry of Foreign Affairs; 5 government-related organizations (JICA, JBIC, JETRO, JOGMEC, NEXI)

-21 private companies (companies from commerce, manufacturing, heavy industry, finance, etc.)

4. Achievement

(1) Strengthening of the relationship through direct talks with the head of state and government, cabinet ministers, and business representatives in each country

- In the countries the Mission visited, a total of 17 meetings was held with political leaders including presidents and cabinet ministers. (Personal letters from Prime Minister Fukuda were handed over by Mr. Yoshikawa.)

- Especially, Japanese enterprises exchanged opinions directly with high-level government officials in each country and built networks for the expansion of bilateral trade and investment.

- Leaders of each county enhanced their understanding of the following aspects:

With rich natural resources in southern African countries, making full use of those resources is the best way for those countries to realize self-sustaining development. To that end, assistance from the Government of Japan and expansion of business with Japanese companies are important.
A number of Japanese companies have contributed to the economic growth in southern Africa through business activities in the area.
Many Japanese enterprises are interested in business in southern Africa.

(2) Strengthening of the business network through trade and investment seminars and others

- Business seminars were held in each country visited, with the participation of high-level government officials including ministers, and local private-sector enterprises. Presentations were made on the economic situation including the trade and investment environment in each country and detailed data provided on projects which were under way or in planning.

- It served as an opportunity to open up business partnerships between Japanese enterprises and local enterprises through active exchange of opinions.

- Also within the Mission, there was increased interest in business in Africa as participating enterprises exchanged information and sought cooperation among enterprises.

- The Mission also visited sites of projects which could be considered successful cases of cooperation between Japanese and local enterprises.

(3) Others: cooperation in the international arena and promotion of commerce and measures to secure resources

- The Mission pledged to continue its cooperation such as improvement of infrastructure by economic cooperation and joint studies in the field of resources. Gratitude was expressed by the countries visited for Japan’s cooperation such as ODA.

- The Mission requested each country to participate in the project of the Remote Sensing Center established in Botswana, aimed at resource development in southern Africa.

- There was also exchange of opinions on such matters as cooperation in the United Nations and the international arena.

【Outline of Activities in Each Country】

1. Republic of Botswana (August 31-September 1)

(1) Talks with Government Leaders

President Seretse Khama Ian Khama; Patrick Balopi, Speaker of the National Assembly; Minister of Foreign Affairs and International Cooperation Phandu Tombola Chaka Skelemani; Minister of Minerals, Energy, and Water Affairs Ponatshego Kedikilwe; Minister of Finance and Development Planning Jacob Gaolathe; Minister of Communications, Science, and Technology Pelonomi Venson-Moitoi; Executive Secretary of the Southern African Development Community (SADC) Tomaz Augusto Salomao

(2) Exchange of views with Business Circles

On September 1, a seminar to promote trade and investment between Japan and Botswana was held under the sponsorship of the Government of Botswana. The Botswana side made a presentation on its economic overview, trade and investment measures for mineral resources, and fields and industries where it is possible for Japanese enterprises to invest.

(3) Site Visit

On August 31, the Mission visited the Remote Sensing Center which opened in July this year with the cooperation of JOGMEC. In this facility, joint resource survey and transfer of technology are made by advanced exploration techniques using satellite images, which Japan owns.

2. Republic of Mozambique (September 2 – 4)

(1) Talks with Government Leaders

Ms. Luisa Dias Diogo, Prime Minister; Mr. Antonio Fernando, Minister of Industry & Commerce; Ms. Esperança Bias, Minister of Mineral Resources; Mr. Salvador Namburete, Minister of Energy; Mr. Manuel Chang, Minister of Finance;

Mr. Victor Bernardo, Vice Minister of Planning and Development

(2) Exchange of views with Business Circles

On September 3, a “Japan-Mozambique Investment and Business Promotion Seminar” was held under the co-sponsorship of Mozambique’s Investment Promotion Center and Mozambican Confederation of Economic Associations. The Mozambican side gave a presentation of the country’s investment and business legislation, its policy for mineral resources, a plan for the improvement of infrastructure such as roads, ports and railways, and projects on hydro and thermal power generation, iron works and aluminum refining, followed by an exchange of views.

(3) Site Visit

On September 4, the group visited the Mozal Aluminum Smelter in which a Japanese company invested. It was briefed on local community activity on a 500-million-yen-a-year scale, and visited a nearby elementary school which was constructed by the company. At that school, Mr. Takamori Yoshikawa, State Secretary for Trade, Economy and Industry, donated soccer balls.

3. Republic of Madagascar (September 4 – 6)

(1) Talks with Government Leaders

Mr. Marc Ravalomanana, President, General Marcel Ranjeva, Minister of Foreign Affairs, and Mr. Ivohasina Razafimahefa, Minister of Economy, Trade and Industry.

(2) Exchange of views with Business Circles

On September 5, a Japan-Madagascar Business Seminar sponsored by the Madagascan Ministry of Economy, Trade and Industry was held. The Madagascan side gave a presentation of the country’s business environment, followed by an exchange of views with Madagascan enterprises in the five sections of minerals and energy, investment consultations, infrastructure such as construction and transport, agriculture, and tourism.

4. Republic of South Africa (September 6-9)

(1) Talks with Government Leaders

Ms. Phumzile Gloria Mlambo-Ngcuka, Deputy President, Mr. Mandisi Mpahlwa, Minister of Trade & Industry, Mr. Aziz Pahad, Deputy Minister of Foreign Affairs, Ms. Elizabeth Thabethe, Deputy Minister of Trade & Industry (at the talks with Mr. Mandisi Mpahlwa, Minister of Trade & Industry, it was agreed that both sides would make adjustments so that the first joint trade committee (JTC) meeting would be held in November or December this year).

(2) Exchange of views with Business Circles

On September 9, a meeting to exchange views was held with private companies of South Africa (from South Africa, companies in such industries as power generation, mining, automobiles and banking). They gave a presentation and then views were exchanged.

(3) Site Visit

The group visited a chrome ore site and a refinery of Hernic Ferrochrome, the world’s fourth biggest ferrochrome manufacturer and distributer, whose shares are being acquired by Japanese companies.

(END)