Japanese Companies Make a Significant Presence at GITEX Africa
Under the direction of the Japan External Trade Organization (JETRO), Japanese companies, both public and private, had a significant presence at GITEX Africa, a major technological event focused on Africa, held in Marrakech, Morocco, from May 29 to 31, 2024.
This comes as Japan is exploring new markets on the African continent, and at a time when the country's investment flows to Africa are increasing regularly. In 2020, Japanese investments in Africa reached approximately $3 billion, and more than doubled to exceed $7.5 billion in 2021.
Sadaharu Saiki, a speaker and investor participating in GITEX Africa, stated that although the venture capital asset class has faced difficult times due to economic crises caused by the COVID-19 pandemic and the Russia-Ukraine war since 2020, Africa has experienced enormous growth in this sector, and the continent has recorded the highest growth in this sector among all regions of the world, including North America, Asia-Pacific, Europe, and Latin America.
Saiki, who moved from Tokyo to Cairo in 2022 to found Sunny Side Venture Partners, a venture capital firm investing in startups in North Africa and across the rest of the continent, continued that Japanese investors are increasingly interested in African markets partly due to the demographic and economic problems Japan is facing. Japan is expected to experience a significant decline in population over the next few decades, which will inevitably lead to a decrease in economic growth.
Nearly half of Japan's population is already 50 years old or more, and by 2035, this figure is expected to reach 54%. Japan is one of the oldest countries in the world, according to several sources.
On the other hand, Africa has a completely opposite situation. With a population of 1.4 billion, it is one of the fastest-growing markets in terms of population. A larger population means a larger economy.
This pushes Japan to find another market to continue growing despite a declining population.
The investor specified that Japanese investors tend to be relatively conservative, and until now, only a small number of Japanese companies have expanded into Africa. However, it is clear that Africa is the answer to many of Japan's economic problems – and this is why venture capitalists are investing in African startups, hoping to catalyze more collaborations between Africa and Japan in the future.
According to a recent report by the Japanese Ministry of Foreign Affairs, there were 927 Japanese companies active in Africa in 2022, compared to 520 in 2010.