Japan and its trading houses have scrambled in recent years to court resource-rich African countries as competition has intensified with Europe and China to secure natural resources and raw materials prices have surged with the demand of rapidly growing emerging economies.
Their efforts underscore the urgency of the matter for Japan, as a country that relies heavily on raw materials imports. China, a major producer of rare metals — vital for high-tech manufacturers — has also become a major consumer and is tapping overseas sources to meet its expanding demand.
Foreign direct investment from Japan to Africa is rising fast as many companies seek access to increasingly precious resources. The amount of Japanese FDI to Africa in 2007 reached $1.1 billion, up from $899 million in 2006 and $25 million in 2005, according to the Japan External Trade Organization.