Ramaphosa Leverages Japan for Trade Growth and Tariff Relief Amid US Pressure

Ramaphosa Turns to Japan to Navigate Global Trade Shifts

In the wake of rising US tariffs that have disrupted South Africa’s traditional trade flows, President Cyril Ramaphosa is turning his attention to Japan as a stable, strategic partner. Speaking at the South Africa-Japan Business Forum during the 9th Tokyo International Conference on African Development (TICAD9) in Yokohama, he highlighted Japan’s openness to tariff adjustments as a potential lifeline for South African exports.

“We seek partnerships in sectors ranging from battery minerals to renewable energy, automotive components, and hydrogen technologies,” Ramaphosa said, emphasizing South Africa’s readiness to collaborate on infrastructure, skills development, and youth-led innovation.

Trade Between South Africa and Japan: A Growing Success Story

South Africa and Japan’s trade relationship has been steadily expanding, reaching R132 billion in 2024, with South Africa enjoying a R52 billion trade surplus. Strategic minerals, automotive components, chemicals, polymers, and stainless steel products form the backbone of South African exports to Japan.

Over 270 Japanese companies operate locally, sustaining over 200,000 jobs, demonstrating the deep economic ties between the two nations. Ramaphosa stressed that improved energy reliability and modernized infrastructure would create new opportunities for private investment in ports and rail systems, further facilitating bilateral trade.

AfCFTA and Green Technology: South Africa’s Global Play

Beyond Japan, South Africa is leveraging its position in the African Continental Free Trade Area (AfCFTA) to broaden market access. Incentives for electric vehicles, battery production, and green hydrogen value chains are paired with investments in skills and infrastructure, signaling a forward-looking industrial policy.

“South Africa is growing its health manufacturing capacity, including vaccines, diagnostics, and therapeutics, while expanding digital infrastructure to bridge access gaps,” Ramaphosa said. He stressed that Japan could play a role in helping South Africa become a continental industrial platform for exporting goods across Africa.

Expert Insights: Opportunities and Challenges

Piet Croucamp, associate professor at North-West University, noted that Japan represents a stable and predictable market, ideal for South Africa to expand exports without the volatility seen in other regions.

However, political analyst Professor Andile Siswana cautioned that energy security in SADC remains a concern. South Africa’s Energy Availability Factor stands at 61%, below the recommended 70%, highlighting the need for regional cooperation. Siswana also questioned how South Africa’s EV incentives align with Japanese automakers like Toyota, which currently favour hybrids over fully electric vehicles.

“Clarifying Japan’s capabilities and defining collaborative strategies in pharmaceuticals, AI, and robotics is essential,” Siswana added, referencing lessons learned during the COVID-19 pandemic about South Africa’s weaknesses in vaccine production.

A Strategic Pivot in Turbulent Times

With US tariffs reshaping trade dynamics, Ramaphosa’s outreach to Japan underscores South Africa’s proactive approach in securing new markets and fostering technological partnerships. For local businesses and young innovators, this move promises potential growth in green technologies, manufacturing, and digital services, while signaling to the global market that South Africa is ready to adapt, diversify, and thrive.

{Source: IOL}

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