The Department of Trade and Industry (DTI) and the Japan External Trade Organisation (Jetro) have extended and upgraded a memorandum of understanding (MoU) in which the two parties agree to jointly promote business ties between South African and Japanese companies in the automotive and renewable-energy sectors.

This extended the original MoU from 2009 for another year, in which both parties agreed to develop business ties.

The agreement, which was signed on the sidelines of the Tokyo International Conference on African Development summit, in Yokohama, Japan, would see the organisations developing supplier relationships between companies in the local and Japanese automotive sectors.

DTI deputy director-general Pumla Ncapayi said in a statement that the Suppliers Development Forum, as well as various business matchmaking events, would be held to facilitate communication between Japanese automotive manufactures and South African auto parts suppliers.

Ncapayi added that the DTI and the Jetro would also establish business delegations to jointly promote the transfer of technologies for the renewable-energy and energy efficiency sectors between South Africa and Japan.

In addition, the Jetro would assist the DTI with the South African national pavilion at the international food and beverage exhibition Foodex 2014, to be held in Japan in March next year, and would jointly hold food market seminars in South Africa. 

“We both recognise the mutual benefit of promoting trade and investment between South Africa and Japan, and affirm the significance of our previous joint activities,” she said.

The department had already held three investment seminars in Japan as part of an implementation plan envisaged by a MoU signed by the DTI, the Bank of Tokyo-Mitsubishi and the Mitsubishi UFJ Financial Group (MUFG) earlier this year.

These were were aimed at increasing foreign direct investment from Japan to South Africa by creating awareness of opportunities in South Africa and conveying critical aspects of the local business climate.

“The seminars have already delivered results, with delegates stating that the sessions had ‘cleared up a number of negative perceptions’ they had about the country. Other positive comments were related to size of the market in comparison to the region, and the incentives and support that the South African government is willing to offer,” Ncapayi said.

The signing of the MoUs between the department and the Jetro, the bank of Tokyo-Mitsubishi and the MUFG followed a visit last year by Minister of Trade and Industry Dr Rob Davies to Japan, which was aimed at enhancing and deepening trade and investment relations with Japanese business, government and financial institutions.