South Africa’s Department of Trade and Industry (DTI) and the Bank of Tokyo–Mitsubishi UFJ this week signed a memorandum of understanding (MoU) on promoting industrial and economic development between South Africa and Japan.

The MoU emanated from a visit to Japan by Trade and Industry Minister Dr Rob Davies last year where it was agreed that both countries would assist with and collaborate in the area of increasing Japanese investment into South Africa.

The MoU would be supported by a plan of action and a schedule of events, which would include investment seminars in both countries, skills transfer activities and collaboration on projects in South Africa and the rest of Africa.

Speaking at the signing ceremony, DTI director-general Lionel October said the agreement would strengthen and deepen the cordial bilateral relationship that existed between the two countries.

“Japan is one of the leading countries when it comes to information and communication technology and manufacturing, and it’s quite fitting for us as government to enter into an agreement that will benefit and assist [in industrialising] both South Africa and the rest of the continent,” he added.

Bank of Tokyo-Mitsubishi senior managing executive officer Muneo Kurauchi said South Africa was a promising country to do business in and that he was hoping that the cooperation agreement would work for both countries.

The Bank of Tokyo Mitsubishi UFJ had a representative office in South Africa and would shortly open a fully fledged branch that would support the needs of its clients locally.

“Africa’s economy is growing and more countries are investing in the continent to set their footprint. The investment is likely to increase and more Japanese companies need to be educated on doing business in Africa,” he added.

It was further agreed that an action plan would start off with disseminating information about opportunities in South Africa. This would be followed by investment seminars focusing on strategic sectors.