Monday, 3 June 2013

Japanese economic boost for SA

YOKOHAMA, Japan - Various Japanese companies have expressed interest in opening manufacturing plants in South Africa. That’s according to the trade departments of the two countries.

A recent study compiled by the departments shows that more employment is likely to be created in South Africa’s automotive industry, agro-processing and minerals sectors. Japan is South Africa’s third largest export destination, and the fifth largest source of imports.

Already the 110 Japanese companies operating in South Africa have created about 150,000 jobs.
The South African government says it will create favourable investment incentives for Japanese companies in the mining, agro-processing and manufacturing sectors.

"Actually investment means jobs. Jobs not only in manufacturing but also services, because manufacturing sectors are very big job multipliers. They create a number of service-related activities and they are the highest multipliers of any other production sector," said Trade and Industry Minister Rob Davies.

The United Nations Development Programme says doing business with a developing country like South Africa may just be the impetus Japan needs to revitalise its economy.

At nearly R20-billion, Japan’s direct investment in South Africa has been steadily growing in recent years. And the continued growth is expected to create more jobs and promote the transfer of skills to South Africa.

The Japanese government says it will urge its companies to invest in the areas of health, education and infrastructure development.

"Focusing on improving infrastructure in Africa that will bring in investment as well as to empower people of Africa, so that human resources will be available when Japanese companies and other companies want to come to Africa," said Japanese government spokesperson Masaru Sato.

Japanese investors' acknowledgement of the continent's economic growth potential, are certainly expected to translate into even greater investment.


No comments:

Post a Comment