President Cyril Ramaphosa has held talks with Japanese businesses as part of efforts to attract new markets amid US tariff challenges

South African President Cyril Ramaphosa has met with several Japanese businesses in the renewable energy and auto sectors on the sidelines of the 9th Tokyo International Conference on African Development Summit (TICAD9) in Yokohama, Japan.

This comes as Ramaphosa has embarked on a strategic mission to enhance South Africa's economic landscape and diversification strategy by courting Japanese businesses in light of the recent 30% upsurge in tariffs to the US market. Japan is one of the major investors with more than R90 billion in the South African economy, with 260 Japanese companies, sustaining over 150 000 local jobs.

Ramaphosa met with Mitsui, the strategic investor (27.5% stake) in Mainstream Renewable Power, which currently has a 12GW SA wind solar pipeline and reached financial close on a 97.5MW solar farm for Sasol/AirLiquide. Mitsui is a top tier sg shsha-Japanese wholesale companies that trade in a wide range of products and materials-with a pronounced tilt toward next-generation fuels and decarbonisation solutions.

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Ramaphosa also held a bilateral meeting with President and Chief Operating Officer of Isuzu Motor Corporation, Shinsuke Minami, on the margins of the Summit.

The Isuzu Motors South Africa (IMSA) has a manufacturing base in Gqeberha, Eastern Cape which produces the 7th-generation D-MAX after a R1.2bn plant upgrade (new body shop, chassis line, paint-shop upgrades). IMSA is positioned as a supply hub for Sub-Saharan Africa-exporting D-MAX to 34 regional markets and shipping KD kits to Kenya for local assembly.

Ramaphosa also has a scheduled meeting with Japanese business leaders, including an engagement with Mitsubishi Heavy Industries chairperson, Seiji Izumisawa, on the Summit's sidelines. A high-level South African business delegation accompanies him to explore further investments. Ramaphosa also held a bilateral meeting with Norihiko Ishiguri, chair and CEO of Japan External Trade Organisation (JETRO).

The Presidency said that Ramaphosa was advancing South Africa's Presidency of the G20 and bilateral economic engagements with the government and industry leaders of Japan, with a view to strengthening trade and investment ties between South Africa and Japan.

An analyst highlighted South Africa's strong bilateral trade with Japan, which totaled R132 bn in 2024 and saw South Africa record a R52 bn trade surplus, primarily driven by exports of platinum, with expanding agricultural trade also noted with new opportunities in avocados and nuts.

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Both countries also collaborate extensively in science, technology, and innovation, with a shared interest in fostering inclusive economic development to balance trade and further strengthen their 115-year-old relations.

Entrepreneur Sibusiso Ngwenya, who is innovating towards South Africa's first electric car, on Wednesday said Ramaphosa's efforts in luring Japanese business leaders to bring more of their technology to South Africa was an indication that the 30% US tariffs had evoked the President's business acumen.

"I trust the President's judgement and overall strategy to get South Africa back to being profitable, particularly in the auto sector. The increased investment of Japanese automakers would help small businesses," Ngwenya said.

"We are seeing the President at work as a businessman because we are no longer forced to sustain ties with one region."

Ngwenya said the advantage with Japanese auto car makers was their broad range of products including Mazda, Toyota, Isuzu and Nissan, which were dominant in the local auto sector. "Even the German automakers sourced some components such as chassis and other technology from Japanese automakers. It is bold and decisive of South Africa to heighten ties with Japan car makers," he said.

First published by IOL

(RT.com)