Japan External Trade Organization yesterday said that the lack of clear communication on policy, regulation, and legislation changes had been the key factors affecting the Japanese investors in the country.
Speaking to journalists, the deputy director, Middle East, and Africa division Sawaka Takazaki stated that most investors have been fleeing from poor communication risk and the fear of new laws being implemented which can profoundly affect their businesses and Japan’s trade policy.
“Elections are also a major challenge, especially when they become violent and create instability, thus affecting these companies’ profits,” Sawaka said while at his headquarters in Tokyo.
According to Jetro’s senior director for the global strategy for Africa Makoto Matsumura, Ken Invest has been of great help to the Japanese companies as it has been highly helping them understand the changes of policy in the country unlike the Kenya Chamber of Commerce.
Other challenges facing the Japanese investors in the country and the African region include foreign exchanges, financing, hiring, and human resource, social and political instability, trade regulations, and poor infrastructure.
Such risks have seen companies from this Asian country consider investing in other countries like Morocco.
The trade deficit between the two countries has remained to be huge as Kenya recorded Sh6.34 billion exports to Japan in 2016 while Japan exported Sh80.7 billion worth of goods into the country the same year.
Kenya exports cut flower, tea, coffee, fish fillet, and nuts, and imports second-hand vehicles, ships, machinery, iron and steel, electrical machinery and seafood from Japan.
In 2018, Japan exported goods worth $898 million to Kenya, marking a 17.8 percent increase in comparison to 2017 exports.
Besides Kenya, other countries which have been Japans main importers in Africa include Egypt, and South Africa importing similar products with Kenya.
