More Japanese investment to flow once SA re-establishes 'solid' infrastructure platform

Source: Terence Creamer - Creamer Media, 22/09/2015

The re-establishment of a "solid" infrastructure platform, through
large-scale investments into energy, transport and water
infrastructure, is South Africa`s most urgent priority, Japanese
Chamber of Commerce and Industries in South Africa chairperson Sachio
Kaneki said at a seminar in Johannesburg on Tuesday. Speaking from a
platform shared with South Africa`s Deputy President Cyril Ramaphosa
and Japanese Ambassador Shigeyuki Hiroki, Kaneki argued that once such
a platform was in place more Japanese investment would follow.

There were currently some 130 Japanese companies operating in South
Africa, employing around 150 000 people and Kaneki, who is
Mitsubishi`s VP and chief regional officer for Africa, said that many
more were showing interest in the country as a "gateway" to the rest
of the continent, notwithstanding the fact that Africa`s most
developed economy was "was facing its most difficult times since
1994". "More Japanese companies are taking an interest to either
commence or expand businesses in Africa," he said, noting the
chamber's membership had increased for 49 to 65 forms over the past
two years. Japanese companies, he said, had the technology, the
funding and the experience to assist South Africa in dealing with its
infrastructure backlogs.

In addition, Japanese firms were willing and eager to pursue
public-private partnerships at a time when South Africa`s fiscal
resources were under strain, owing to the country`s weak growth
performance. South Africa had many priorities, but the "most important
thing now, is to build a solid infrastructure platform" so as to
restore investor confidence. Ambassador Hiroki said that the
electricity challenge was particularly urgent and that Japan – which
itself faced major electricity constraints following the 2011
earthquake and tsunami – had valuable lessons to share with South
Africa in areas of expediting gas infrastructure, increasing savings
and improving energy efficiency. Ramaphosa indicated that South Africa
was also keen to draw on Japan`s industrial prowess, with the National
Development Plan placing emphasis on the further industrialisation as
a core part of the `2030 Vision` of reducing unemployment, poverty and
inequality.

He was also keen to deepen partnerships in the areas of skills
development and education, lauding Japan`s decision to facilitate the
education, to a masters level, of 1 000 African students, including
students from South Africa. Japanese companies had also offered these
individuals internships following he completion of their two years of
study. Hiroki also handed Ramaphosa a letter of intent stating that
Japan would be setting up a task force to investigate a new artisan
training initiative for young South Africans.

The Deputy President welcomed the initiative, which he described as a
positive response to what he considered to be a "casual conversation"
with officials during his recent visit to Japan. He was also
optimistic that the two countries would find ways to partner on the
further development of the hydrogen fuel cell, with Japan having
emerged as a leading innovator and South Africa keen to foster the
commercialisation of a technology that used platinum as a catalyst.
"This technology holds the promise of a cleaner, more sustainable
future," Ramaphosa said, noting that he had driven in a fuel-cell
powered car while he was in Tokyo.