Japan is looking to Africa for its next big trade move, and Kenya is right at the center of the plan.
According to Japan’s Nihon Keizai Shimbun (Nikkei), Tokyo is preparing to launch negotiations for a Free Trade Agreement (FTA) with African countries, starting with the East African Community (EAC) and major economies like Nigeria and Ghana.
The announcement is expected at the 9th Tokyo International Conference on African Development (TICAD), which runs from August 20 to August 22 in Yokohama.
Further, Japan plans to set up a review meeting involving industry-academic officials to verify the effects and tasks of economic cooperation for about two years.
Kenya stands to benefit as East Africa’s logistics hub with the Port of Mombasa and the Standard Gauge Railway positioning Kenya to benefit from an expanded trading relationship.
Also Read: Japan Automakers Hardest Hit by U.S Tariffs as Exports Fall
Kenya at the Heart of Japan
According to the African Development Bank, Africa’s overall economic growth rate is expected to reach 3.9% this year. Out of a total of 54 countries, 21 countries have a growth rate of more than 5%.
Moreover, the Japanese government is considering the East African Community (EAC) as a candidate for negotiations.
With modern ports, growing industrial zones, and its role as a connector for landlocked neighbors like Uganda, Rwanda, and South Sudan, Kenya is the natural anchor for Tokyo’s Africa strategy.
Under a potential FTA, Japan would seek to eliminate or reduce tariffs, streamline customs procedures, and support infrastructure projects that make trade more efficient.
For Kenyan businesses, this could mean cheaper imports, more investment in local logistics, and greater opportunities for exports to the Japanese market.
The Japanese government sees the FTA as a way to boost automobile exports, its flagship industry.
Currently, high tariffs in different countries drive up costs, especially when vehicles must pass through multiple borders to reach landlocked markets.
Also Read: Kenyans to Export to China Tax-Free Under New Deal
Nigeria and Ghana as Big Players
Nigeria and Ghana, both major population centers in West Africa, are also being considered for negotiations.
Nigeria is Africa’s leading energy powerhouse, while Ghana is fast emerging as a logistics and industrial hub in the region.
To strengthen trade, Japan also intends to invest in infrastructure development, from roads and railways to regional air networks, in order to better integrate the African market.
Data from the Japan Trade Promotion Organization (JETRO) shows that trade between Japan and Africa totaled 1.3 trillion yen (about 12.3 trillion won) last year.
Moreover, Japan’s exports to the continent are dominated by automobiles, both new and used, while imports are largely made up of mineral resources.
South Korea began talks in 2024 on economic partnership agreements (EPAs) with Tanzania, Morocco, and Kenya.
However, despite its active participation in global trade pacts such as the Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) since the 2000s, Japan has yet to sign a single FTA or EPA with an African country.
Follow our WhatsApp Channel and X Account for real-time news updates.
