Mozambique-Japan Business Forum in Tokyo for 40th anniversary of establishment of diplomatic relations

JETRO Chairman and CEO Hiroyuki Ishige stated in his greetings that business relations between Africa and Japan have entered a new stage following the 6th Tokyo International Conference on African Development (TICAD VI) held in Kenya in 2016. From this perspective, he emphasized that significant business opportunities lie in Mozambique which is blessed with abundant natural resources including gas and coal. He announced that JETRO is now planning to open its eighth office in Africa—in Maputo, the capital of Mozambique—and through the office, JETRO will make efforts to enhance its framework toward developing the economic relationship between the two countries.

In his greeting, Shunsuke Takei, Parliamentary Vice-Minister for Foreign Affairs, spoke on the history of Mozambique, which has grown by playing a role connecting Africa to Asia. From this point of view, he stressed that Japan has the willingness to work with Mozambique to strengthen ties between Asia and Africa based on the “Free and Open India and Pacific Strategy” proposed by the Japanese government at TICAD VI. He also mentioned that the Japanese government will provide economic cooperation to Mozambique primarily through the development of the Nacala Corridor area, touching on the fact that the follow-up ministerial meeting for TICAD VI will be held in Mozambique this year. He continued that approximately 3.4 billion yen will be extended by the Japanese government toward renovating aging bridges on main roads in the country. Mr. Takei finished his greeting by expressing his hope that ties between both countries will tighten in a friendly and cooperative manner following President Nyusi’s visit to Japan.

Takumi Ihara, Parliamentary Vice-Minister of Economy, Trade and Industry, touched on the fact that the Japanese government had declared the establishment of the “Africa-Japan Public and Private Economic Forum” at TICAD VI in order to facilitate entry to Africa by Japanese companies, and he revealed that the drastic expansion of the economic relationship between Mozambique and Japan can be seen in the data of trade between the two countries: the export value of coal to Japan and import value of cars and machines from Japan. Furthermore, he highlighted that Japanese companies are able to contribute to Mozambique in terms of infrastructural and technological development, and human resource cultivation, by using their advantages such as cutting-edge technology, practical business knowledge and high quality maintenance methods and services through providing detailed guidance and close communication with customers.

In his keynote speech, President Nyusi promoted the attractiveness of doing business in his country such as abundant natural resources including natural gas and coals, fertile land, seafood including tuna and shrimp nurtured along the country's long coast and a logistics network allowing access to neighboring countries which increases the potential of Mozambique as an export base. Acknowledging the great contribution by Japanese companies to vitalizing the regional economy within Nacala Corridor, he conveyed his hope that more Japanese companies including SMEs will enter Mozambique. Specifically, he said he is eager to see companies from both countries build up partnerships in the categories of technical transfer in manufacturing, modernization in agriculture and human resource cultivation in industry. In line with this, he announced his intention that he will simplify visa issuance procedures and expand tax incentives with the aim of improving the investment environment in his own country.

The signing ceremony for the contracts and memorandums of understanding between companies as well as organizations from Mozambique and Japan was held after the keynote speech. These were for four projects including human resource cultivation in the fields of thermal power plants; liquid natural gas, petroleum and natural gas; and technical training in the fields of gas and hydrocarbon.

Following that, the current state of the investment environment in Mozambique was introduced by JETRO and a Mozambican investment promotion organization as well as business circles and Japanese companies in the country. Fumito Takahashi, JETRO representative to Mozambique, explained that business opportunities for Japanese companies have been expanding primarily in major industries—coal, gas, ports and Nacala Corridor—under Mozambique’s economy which has the potential to grow above the average rate of countries in sub-Saharan Africa.