Japan investors set their sights on Tanzania

August 11, 2013 12:50 am0 comments by:

download (2)Japan has made an unprecedented commitment to invest in Tanzania in a move aimed to make Tanzania as a model for Japan trade and investment in Africa.

This was announced yesterday by Japan’s Economy, Trade and Industry Minister Toshimitsu Motegi who is visiting Tanzania with a delegation of representatives from 13 private and five state companies.

Mr Motegi’ visit is a follow-up visit after a highly successful visit of Tanzania President Jakaya Kikwete to Japan in June 2013.

In the deal announced in Dar-es-Salaam, Japan will invest more in the Tanzania’s infrastructure, power and retail sectors. Among these initiatives include the modernization and expansions of Dar –Es Salaam port infrastructure and overhaul and modernisation of central Railroad.

In another move which could be unfolding trends for Africa to replace Asia as a global centre of low-cost manufacturing, Japan manufacturers will set up more production facilities in Tanzania with the aim to make Tanzania as Japan manufacturing hub. Honda and Panasonic will be the first companies which will start by setting up their manufacturing plant in the Tanzania as part of Japan’s African strategy.

On agriculture side, and in what will be a landmark deal for the future of cotton production in Tanzania, Japan will also invest in the Tanzania cotton industry to boost production and supply chain in a deal which will also set up a plant for making high-value cotton fabric.

While Japan have a long history of close ties with African countries — Japan influence in Africa have declined compared to China which has  greatly increased its profile throughout the Continent starting in the 1990s, by investing a huge sums in the continent.  The move like this is seen as way of Japan to strengthen its engagements with Africa.

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