Will Japan follow in India and China’s footsteps?
Thursday, July 15, 2010
A recent report by McKinsey consultants lauded the future of African businesses claiming that “global business cannot afford to ignore the potential”. It seems Japan has taken note. Today Nippon Telegraph and Telephone has announced its decision to buy South Africa’s Dimension Data for $3.24bn. The deal is good news for both parties.
Japan will gain greater access to Southern African economies, many of which are benefiting hugely from telecoms liberalisation. And, South Africa will gain from the inflow of capital and expertise bringing much needed expansion and employment opportunities to the region.
Furthermore, this deal raises the hope that Japan, like India and China, could be beginning to realise the potential for capital investment in Africa.