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TICAD V and Japanese Business in South Africa

TICAD V and Japanese Business in South Africa. Mr. Yutaka Yoshizawa Ambassador of Japan in South Africa. Outline. TICAD V Trade and Investment Statistics Overview of Japanese Business Activities Features of Japanese Companies Business Support by Government of Japan Bilateral Dialogue.

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TICAD V and Japanese Business in South Africa

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  1. TICAD V and Japanese Business in South Africa Mr. Yutaka Yoshizawa Ambassador of Japan in South Africa

  2. Outline TICAD V Trade and Investment Statistics Overview of Japanese Business Activities Features of Japanese Companies Business Support by Government of Japan Bilateral Dialogue

  3. Features of TICAD Forerunner of African development forum with 20 years TICADinitiated EU Africa Summit initiated Forum of China Africa Cooperation initiated Korea Africa Forum initiated India Africa Forum Summit initiated Summit-level international conference with Various Participants The largest conference on African development agendas outside Africa Summit-level Co-organized by Japan, the United Nations, the World Bank, the UNDP, and the AUC. Other UN organizations and related organizations engaged. International Organizations Open to CSOs and the Private Sector who are interested in African development agendas and expected for active engagement to TICAD CSOs Private Sector Steady progress on the Japan’s Commitment made at TICADⅣ reviewed by the Follow-up Meetings every year Doubling Japan’s ODA Source: MOFA Japan Source: JETRO

  4. Basic Concept of TICAD V 1-3 June, 2013 inYokohama, Japan Hand in hand with a more dynamic Africa-Transformation for quality growth- First Theme Enhancing Growth Sector Trade/Investment, Tourism, Private Sector Development Strengthening Bases for Growth Infrastructure, Science & Technology, Improving Investment Climate, Regional Integration Main- streaming Disaster Reduction Enhancing Disaster Risk Management (e.g. Disaster Resilient Infrastructure ) Rule of Law and Good Governance Improving Legal Stability, Administrative Capacity Building Robust and Sustainable Economy Human Development for Growth Employment, Secondary & Higher Education, Health, Empowerment of Woman Food Security Agriculture Development Addressing Environment and Climate Change issues Low-Carbon Growth and Climate Resilient Development, Water and Sanitation Second Theme Inclusive and Resilient Society Accelerating Efforts towards the MDGs Poverty Reduction, Infectious Disease Control, Maternal and Child Health, Primary Education, Gender Equality, Building Equitable Society Safe and Secure Society Addressing Cross border issues (e.g. terrorism and pirates) , Security Condition Third Theme Peace and Stability Creating Peace and Stability Supporting African Efforts Conflict Prevention and Consolidation of Peace Supporting Basis for Peace and Stability, Enhancing Peacekeeping Capacity, Supporting Consolidation of Peace Ownership Partnership ●Supporting Africa’s efforts ・Including specific measures taken by Africa in a New Action Plan ・Reviewing their progress in the Ministerial Follow-up Meeting ●Involving a wide range of actors Enhancing Partnership with Private Sectors(including SMEs), CSOs, Academics, Philanthropic Foundations, International/Regional Organizations ●Linkage with other international fora(e.g.G8/G20) ●Promoting south-south and triangular cooperation ●Involving emerging countries Significance in the International Community Achieving the MDGs and Identifying Development Agendas in the Post MDGs Realizing Human Security Contributing to Global Economic Growth

  5. Trade and Investment Statistics • Trade relationship between South Africa and Japan • Investment relationship between South Africa and Japan Japanese FDI Stock to SA • More than 110 Japanese companies have been operating in SA, creating about150,000 jobs. • More than 1300 Japanese people living in SA • Japan’s ODA to SA amounted to US$ 430 million (1994- 2012)

  6. Overview of Japanese Business Activities Boiler Construction at Medupi& Kusile (Hitachi) Waterburg: PGM (JOGMEC) Platreef: PGM (Itochu, JGC, JOGMEC) HernicFerrochrome (Mitsubishi Corp) Vametco: Vanadium (Sojitz) Rosslyn car factory (NISSAN) Xstrata Lydenburg FeCr (Mitsui) StellexNorth: PGM (JOGMEC) Pretoria Transnet locomotives for Coal and Iron Ore line (Toshiba, Mitsui) Crometal: FeCr (Sojitz, Nisshin Steel) Johannesburg Assmang: FeCr, FeMg, Mg, Iron Ore (Sumitomo) Kudumane: manganese (AML) Tobacco (JTI), AV (SONY) South Africa Japan Vanadium: (Nippon Denko) Renewable Energy IPPs (Itochu/Sumitomo) Durban Durban Port Loan Agreement(JBIC) ICT Dimension Data (NTT) South Africa exploration ICT HANIS (NEC) Durban Factory: catalytic converter production (Cataler) mine Cape Town factory: ceramic catalyst carrier (NGK Insulators) smelter Durban car factory (TOYOTA and other various Japanese suppliers) factory Cape Town SafalSteel (Nippon Steel & Sumitomo Metal, Marubeni-Itochu Steel) Port Elizabeth Tire factory (Factory also in Britz)(Bridgestone) Durban coating factory (also in Krugersdorp, etc) (Kansai Paint)

  7. Features of Japanese Company ① • Long term engagement with local partners • - Basis for mutual prosperity • Skills transfer and human resource development • - Commitment for mutual growth • Compliance of laws and regulations • - Environment, health and no corruption • Cooperative industrial relations • - Working together to improve productivity • Cautious to make a big mouth, strict to keep promises

  8. Features of Japanese Company ② • Japanis renowned by its highest level of technology • in various areas including energy efficiency ①Coal power generation (2006) ②Iron and steel production (2005) ③Cement production (2005) Northern Europe Korea France India Germany France China Japan UK France Germany Japan Germany EU UK China U.S. Russia Japan Korea U.S. India UK EU U.S. Russia China India < Reference : Research Institute of Innovative Technology for the Earth (RITE)( (2009)> < Reference : Research Institute of Innovative Technology for the Earth (RITE)(2009)> <Reference:Ecofys, International Comparison of Fossil Power Efficiency and CO2 Intensity (2009)> ④Paper production (2004-2005) ⑥Copper refining(2000) ⑤Petroleum (2004) Asian Countries (Excluding China) Western Europe Japan Norway Japan U.S. ・Canada Germany France U.S. S Chili Brazil Finland < Reference :The Institute of Energy Economics, Japan(2007)> ※Including Biomass Energy <Reference:Solomom associatesInc.(2005)> Northern America Southern America Japan EU Asia < Reference :Japan Mining Industry Association(2001)>

  9. Features of Japanese Company ③ • Japanis proud of its reliability, safety and resilience • underpinned by technology and institutional set ups. Great East Japan Earthquake Consequences of the earthquake & tsunami <Date and time of occurrence> March 11, 2011 <Strength of the earthquake> Magnitude 9.0 on the Richter scale (The strongest in the history of Japan) <Number of casualties> 22,943 (As of June 20, 2011) No casualties/injuries Shinkansen (HSR) • All stopped safely • No critical destruction • Quick restoration • (Train services on the whole of the Tohoku Shinkansen Line were restored 49 days after) Conventional lines • Station staffs and train crews • successfully led passengers • to the emergency evacuation • areas before the tsunami hit.

  10. Business Support by Government of Japan • The government of Japanextensively encourages and supports Japanese companies to promote trade & investment and to address the challenges of the host country. • JICA (Japan Int’l Cooperation Agency) • ODA Donor Agency of Japan • Engaging mainly in human resource development, science and technology, health, disabilities and regional cooperation in collaboration with DBSA.- More than 1300 South African’s participated in training courses in Japan. 15 volunteers or experts are dispatched in South Africa. • JETRO(Japan External Trade Organization) • Business Promotion through seminars, business mission and tie-ups, etc • Engaging mainly in infrastructure, energy & environment, automotives, etc • Supporting local companies to work together with Japanese companies • JOGMEC(Japan Oil, Gas and Metals National Corporation) • to offer financial support for exploring and mining projects involving Japanese companies • Engaging in technical assistance in remote sensing, mine environment, etc • has a office in Gabarone, Botswana • JBIC (Japan Bank for Int’l Cooperation) • Financial Institution • Since 2007 JBIChas been providing infrastructure and trade finance that amounts to 1.3 billion US dollars and were utilized for power distribution and transmission and the expansion of Durban port etc.

  11. JICA Initiative for Industrial Human Resource Development in Southern African Region • Phase 1: 2011.08-2013.07 Phase 2: 2013:08-2015:07 • Project Period • Phase1: 2012.08-2013.07 Phase2: 2013.08-2015.07 • Project Contents : 3i Knowledge and Thinking System a new skills development concept Hands-on Practical Training assisted by Japanese companies Participatory Classroom Activities Interaction with industry and obtain applied knowledge Improve Employability

  12. Bilateral Dialogue • South Africa-Japan Partnership Forum • South Africa-Japan Business Forum • Since 2001, BF is organized between BLSA and Keidanren (Japan Business Federation) every year in SA or Japan. CCIJ is a part of BF. • To enhance cooperation between the business communities to encourage further activities and deepen mutual understanding. • The 6th BF was held in SA in mid November 2011. • The 7th BF will be held in Tokyo at the time of President’s visit to Japan on 3rd June. • Since 1998, PF is held at Ministerial level every year in SA or Japan. • To oversee comprehensive bilateral relations in trade and investment, development cooperation, science and technology, culture and arts, and dialogue on international issues. • The 12th meeting of the Forum was held in March 2013 in South Africa between Senior Vice Minister for Foreign Affairs Mr. Masaji Matsuyama and DIRCO Deputy Minister Mr. Ebrahim Ismail Ebrahim

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