Asian countries have heavily poured Foreign Direct Investments (FDI) in Africa as the continent possess a massive potential to do business and nurture investments. China, South Korea, and Japan have been key countries that have improved trade relations between African countries and the Asian continent. Their economic ties have benefited major sectors in their economies such as agriculture, tourism, technology, and energy sectors, as well as infrastructure.
Japanese delegates visited East African state Rwanda in search of investment opportunities, with the economic growth being a persuasive factor to explore the business environment. During their three day visit to the country, they met a number of officials to discuss further plans to work together. Their keenness to economically impact Rwanda has strengthened their bilateral ties and given the Japanese companies more ground to invest.
It is believed that the total investments made by Japanese companies in Rwanda has amounted to $22 million, and there are prospects it could grow with over 40 delegates touring Rwanda. They have also created close to 178 jobs in the nation. The business environment has been poised to improve with President Paul Kagame looking to win more investors. FDI has created jobs and added some revenue for the government to expand their financial budget.
Japan is looking for greener pastures in mining and agro-processing among other sectors. These are not only sectors Japanese firms can revolutionize by their expertise but will be a great uplift to the Government of Rwanda that seeks to revive their competitiveness. Their partnership will increase trade and investments between them to the next level.
Rwanda has enjoyed loans from Japan to fund projects and build the nation in general with the help of the African Development Bank (AfDB). Japan has offered support in areas such as water and sanitation, science and technology, as well as education and training.