Maeil Business newpapper, 17 Agust 2025
By LEE Seunghoon
Japanese government is considering signing a free trade agreement (FTA) with African countries
The Japanese government is considering signing a free trade agreement (FTA) with African countries. The priority is the eastern part, which is a major logistics hub such as Kenya, and Nigeria, which has a large population.
The Nihon Keizai Shimbun (Nikkei) reported on the 17th that the Japanese government is expected to announce such a plan at the 9th African Development Conference (TICAD) in Yokohama from the 20th to the 22nd. In this regard, 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.
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%.
Africa's nominal gross domestic product (GDP) is 2.8 trillion dollars (about 3870 trillion won), which is 70% of Japan's (about 4.2 trillion dollars). Compared to Korea (about 2.1 trillion dollars), the economic growth has been strong recently, at about 30 percent higher.
In particular, the abundance of young labor is an advantage. Africa currently has a population of 1.5 billion, mainly young people in their 20s. By 2050, it is estimated to expand to 2.5 billion people, accounting for a quarter of the world's population.
First of all, the Japanese government is considering the East African Community (EAC), which consists of eight Eastern African countries, including Kenya and Tanzania, as candidates for negotiations. Kenya is also called a logistics hub in East Africa due to the maintenance of ports and other facilities.
Nigeria and Ghana in West Africa, which have the largest population in Africa, are also mentioned as candidates for negotiations. Nigeria is Africa's largest energy powerhouse, and Ghana is growing into a logistics and industrial hub in West Africa.
The Japanese government also plans to carry out infrastructure maintenance and development to integrate the African market through the FTA. Africa still has poor infrastructure, such as roads, railroads, and regional air networks. There are no direct flights to neighboring countries, so it is common to go through Europe or the Middle East. In many cases, customs clearance takes several days when transporting by land.
The Japanese government believes that the conclusion of the FTA will help export automobiles, the main pillar of the Japanese industry. This is because each country's tariffs are a factor in increasing costs because exporting cars from ports through landlocked countries must pass through several countries.
According to the Japan Trade Promotion Organization (JETRO), imports and exports between Japan and Africa amounted to 1.3 trillion yen (about 12.3 trillion won) last year. Japanese exports have many cars, including used cars, and imports have a high proportion of mineral resources.
The Japanese government's move also aims to check the Africa Belt and Road Initiative (Silk Road on land and sea) promoted by China and Korea, an advanced FTA country. Last year, South Korea began discussions on expanding economic cooperation through the signing of economic partnerships (EPA) with Tanzania, Morocco, and Kenya.
"The Japanese government's ultimate goal is to sign an FTA with all of Africa," Nikkei said. "It is to clear up the business environment of Japanese companies seeking to enter Africa by eliminating tariffs from each country."
Currently, Japan has not signed an FTA or EPA with any African country. Since the 2000s, Japan has actively signed the Trans-Pacific Partnership (CPTPP) or the Regional Economic Partnership (RCEP) with East Asia, Europe, and the Pacific, but has not made much progress with Africa.
TICAD, which will be held on the 20th, is a meeting led by the Japanese government and has been held since 1993 by inviting representatives from African countries along with the United Nations and the United Nations Development Program (UNDP). Originally held every five years, it has now been changed to a three-year cycle. At the 9th meeting in Yokohama, Prime Minister Shigeru Ishiba will announce plans to improve the logistics network linking Africa and the Indian Ocean.
