Mohau Pheko, South Africa's ambassador to Japan since January 2012, said Japan is a "technologically blessed" country that has been an important international trend-setter but now "faces the big challenge of elevating itself to the next level."

Citing growing competition with emerging powers, including China and South Korea, Pheko said Japan has to think of "what cost it is willing to pay — to move to the next level, and bring new innovations and ideas to the market."

"Japan needs to find its niche again. You need to open up and collaborate more and reinvent yourself," she said during a visit to The Japan Times on Tuesday.