japanese companies in the republic of south...
TRANSCRIPT
Kimihiko Inaba, Director-General,Manufacturing Industry Department,
Japan External Trade Organization (JETRO)
13th of March, 2017Tokyo, Japan
Western Cape Trade andInvestment Seminar
Japanese companies in the Republic of South Africa
Copyright©2017 JETRO. All rights reserved
Ø Eskom generates approximately 45% of the electricity used in Africa.
Ø Penetration of regional multinationals into Sub-Sahara African markets in service sectors such as banking, telecommunication, medical and retail.
Ø SACU, SADC. Southern African Development Bank
Ø G20Ø BRICS (Brazil, Russia, India, China, South Africa)
4 Key Wordsfor Understanding the Republic of South Africa
From the speech of H.E. Toshiro Ozawa, Former Ambassador of Japan to RSA
1
Ø Ex-President Nelson Mandela was released unconditionally by then President De-Clark in 1990
Ø ANC Administration started with then President Nelson Mandela after the National Election in 1994
Ø Frist heart transplantation operation in the worldØ Production of enriched uranium atomic bomb and
abandonmentØ Disparity – Gini: 0.69 (2011)
Economic Hegemon in Sub-Saharan Africa Emerging countries
Developed and Developing Country Political and Social Revolution through the discussion
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Businesses of Japanese companies in South Africa – Four Pillars
2
Automobile
OEMl Toyota SA Motorsl Nissan SAl Isuzu Trucks SAl Mazda SA
Autoparts / Equipmentl Anest Iwata SAl Bridgestone SAl Cataler SAl Denso Corporationl NGK Insulatorl NGK Spark Plugs SAl NSK SAl Sumitomo Wire Systemsl Toyota Boshokul Yazaki
Import / Salel Honda Motor SAl Suzuki Auto SAl Subaru SAl JX Nippon Oil & Energy
Natural resources
development
Miningl Hernic Ferrochrome
(Mitsubishi Corp)l Vametco: Vanadium (Sojitz)l Kudumane: Manganese
(AML)l Waterberg: PGM (JOGMEC)l Platreef: PGM (Itochu,
JGC, JOGMEC)l Crometal: FeCr (Sojitz,
Nisshin Steel)l Assmang: FeCr, FeMg, Mg,
Iron Ore (Sumitomo Corp)l South Africa Japan
Vanadium (Nippon Denko)
Mining machineryl Hitachi Construction
Machinery Africal Komatsu Southern Africa
Infrastructure
Transportationl Transnet locomotives for
Coal and Iron Ore line (Toshiba, Mitsui)
l Durban Port Loan Agreement (JBIC)
Energyl Renewable Energy IPPs
(Itochu/Sumitomo)l Peaker IPP (OCGT) (Mitsui)l Boiler Construction at
Medupi & Kusile (MHPS)
Consumer market
l Fujifilm SAl Kansai Plasconl Pentel SAl Pilot Pen SAl Sharpl Sony SAl Taiyo Bussanl Konica Minolta Business
Solutions Europe GmbHl YKK l ROHTO Pharmaceutical
Co.,Ltd.l Cal-Mo (Pty) Ltd.
Copyright©2017 JETRO. All rights reserved
Businesses of Japanese Companies in South Africa - Diversity
3
Transportation / Logistics
l All Nippon Airwaysl Hankyu Hanshin
Expressl Kintetsu World Express
SAl K-Line Shipping SAl Nippon Expressl NYK Linel Yusen Logisticsl Japan Marine Supplies
& Services
Trade and Investment Firms
l Itochu Corporationl Marubeni Corporationl Mitsubishi Corporationl Mitsui & Co., Ltd.l Sojitz Corporationl Sumitomo Corporation
Africal Toyota Tsusho Africa
Banking / Finance /Insurance
l The Bank of Tokyo Mitsubishi UFJ
l Sumitomo Mitsui Banking Corporation
l Mizuho Bankl Nomura International
plcl Sompo Japan
Nipponkoa Insurancel Tokio Marine and
Nichido Fire Insurancel Mitsui Sumitomo
Insurance
Machinery / Equipment / Engineering
l Mitsubishi Hitachi Power Systems
l Mitsubishi Heavy Industries, Ltd.
l Hitachi, Ltd.l Toshiba Corporationl Melco Elevator SAl Shimadzu SAl Yokogawa SAl Mayekawa SA
Consulting Agriculture / Food /Fishery
ICT
Medical Equipment
l Nippon Koeil The Boston Consulting
Groupl KPMGl Pricewaterhouse
Coopersl Deloitte & Touche
l Sakata Seed SAl Japan Tobacco
International SAl Taiyo A&F Co., Ltd.
l Terumo C. SAl Fujifilm SA
l NEC Africal Dimension Datal MarPless Communication
Technologies
Construction
l Hazama Ando Corporation
l Hanwa Co., Ltd.l Hayakawa Co., Ltd.
Specialized trading company
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Increase of Japanese firms established in South Africa and the Position of SA market
4
Entry year (totaled as of the end of 2014) Number of members in the Japanese Chamber of Commerce and Industries in South Africa
Positioning the South African Republic Market for Japanese Companies Expanding (Questionnaire Survey in 2014)
13 25
2024 23
0
5
10
15
20
25
Before 1970
1971 -1980
1981 -1990
1991 -2000
2001 -2010
After 2011
N=87(Matter)
Source: JETROʼs questionnaire survey of Japanese companies in South Africa in 2014
39 4450
5865 65 64
0
10
20
30
40
50
60
70
Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17
(社)
Overall(N=87)Unit:%
A promising market where future growth is expected (one of the emerging markets) 40.2 An important market where a certain level of business activity can be stably expected 52.9 A market where constant observation is needed because this is a resource-rich country 16.1 A market with many issues such as slow economic growth, but the business is viable because of its future potential 42.5 A hub for the Southern-African market development (hub of Southern Africa) 55.2 The target is the neighboring market such as that of southern-African countries, rather than South Africa 5.7 A hub for the Sub-Saharan African market development (Sub-Saharan Africa) 51.7 Regional headquarters of Sub-Saharan Africa is located here 23.0 The target is the market of the countries in Sub-Saharan Africa, which shows a significant growth, rather than South Africa 11.5 Other 3.4
Source: JETROʼs questionnaire survey of Japanese companies in South Africa in 2014 Source: Data provided by the Secretariat of the Japanese Chamber of Commerce and Industries in South Africa
Copyright©2017 JETRO. All rights reserved
JETROʼs questionnaire survey of Japanese companies in South Africa in 2016: Operating profit in 2016
5
l Target country: South Africal Survey time: Sep. 29 – Nov. 11, 2016l Collection situation:
The questionnaire was sent to 128 Japanese companies operating in the Republic of South Africa, and 87 companies responded.(Response Rate: 68%)
l Local employees breakdown of respondents
69.9%(58)
16.9%(14)
13.3%(11)
⿊字均衡⾚字
39.1%(34Company)
25.3%(22Company)
11.5%(10Company)
13.8%(12Company)
3.4%(3Company)
3.4%(3Company)
3.4%(3Company)
1〜10 Under
11〜50
51〜100
101〜300
301〜1000
1001〜3000
3001 Over
Survey summary Expected operating profit in 2016 Respondent companies: 83 companies
Surplus
Balanced
Deficit
Copyright©2017 JETRO. All rights reserved
JETROʼs questionnaire survey of Japanese companies in South Africa in 2016: Operating profit in 2016 (Comparison)
6
22.5%
49.3%
28.2%71
Company
2015 survey (2015 operating profit estimate)
15.6(5社)
3.1(1社)
3.1(1社)
9.4(3社)
9.4(3社)
15.6(5社)
18.8(6社)
21.9(7社)
68.8(22社)
その他
為替変動
人件費の削減
調達コストの削減
生産効率の改善[製造業のみ]
輸出拡大による売上増加
その他支出(管理費、光熱費、燃料費等)の削減
販売効率の改善
現地市場での売上増加
16.7(3社)
0.0
5.6(1社)
22.2(4社)
27.8(5社)
27.8(5社)
27.8(5社)
44.4(8社)
55.6 (10社)
その他
販売価格への不⼗分な転嫁
⾦利の上昇
⼈件費の上昇
輸出低迷による売上減少
調達コストの上昇
その他⽀出(管理費、光熱費、燃料費等)の増加
現地市場での売上減少
為替変動
Prospect for operating profit in 2016 compared with the previous year's result
(N=83)
Reason for improvement(N=32) Multiple answers %
Reason for deterioration(N=18) Multiple answers %
39.8%(33Company)
38.6%(32Company)
21.7%(18Company)
改善
横ばい
悪化
■Improvement
■No change
■Deterioration
■Improvement
■No change
■Deterioration
Sales Increase in Local Market
Improvement of Sales Strategy
Cost Reduction other than HR
Sales Increase by Exporting
Improvement of Manufacturing Method
Cost Reduction in Procurement
Cost Reduction of HR
Effects of Foreign Exchange
Others
Effects of Foreign Exchange
Sales Reduction in Local Market
Cost Increase other than HR
Cost Increase in Procurement
Sales Reduction by Exporting
Cost Reduction of HR
Rise in interest rates
Insufficient pass on to selling price
Others
Copyright©2017 JETRO. All rights reserved
JETROʼs questionnaire survey of Japanese companies in South Africa in 2016: Prospect for Operating profit in 2017
7
36.1%(30Company)
55.4%(46Company)
8.4%(7Company)
13.3(4社)
0.0
6.7(2社)
10.0(3社)
20.0(6社)
20.0(6社)
30.0(9社)
30.0(9社)
80.0 (24社)
その他
⼈件費の削減
⽣産効率の改善[製造業のみ]
調達コストの削減
為替変動
その他⽀出(管理費、光熱費、燃料費等)の削減
輸出拡⼤による売上増加
販売効率の改善
現地市場での売上増加
14.3(1社)
0.0
0.0
14.3(1社)
28.6(2社)
28.6(2社)
42.9(3社)
42.9(3社)
57.1(4社)
その他
⾦利の上昇
販売価格への不⼗分な転嫁
輸出低迷による売上減少
為替変動
調達コストの上昇
⼈件費の上昇
その他⽀出(管理費、光熱費、燃料費等)の増加
現地市場での売上減少
Sales Increase in Local Market
Improvement of Sales Strategy
Sales Increase by Exporting
Cost Reduction other than HR
Effects of Foreign Exchange
Cost Reduction in Procurement
Improvement of Manufacturing Method
Cost Reduction of HR
Others
SalesReduction in Local Market
Cost Increase other than HR
Cost Reduction of HR
Cost Increase in Procurement
Effects of Foreign Exchange
Sales Reduction by Exporting
Insufficient pass on to selling price
Rise in interest rates
Others
Prospect for operating profit in 2017 compared with the previous year's result
(N=83)
Reason for improvement(N=30) Multiple answers %
Reason for deterioration(N=7) Multiple answers %
■Improvement■No change
■Deterioration
Copyright©2017 JETRO. All rights reserved
12.5(6社)
0.0
0.0
6.3(3社)
6.3(3社)
29.2(14社)
33.3(16社)
54.2(26社)
75.0 (36社)
その他
規制の緩和
労働⼒確保の容易さ
⾼付加価値製品への⾼い受容性
コストの低下(調達コスト、⼈件費など)
取引先との関係
⽣産・販売ネットワーク⾒直し
成⻑性、潜在⼒の⾼さ
売上の増加
JETROʼs questionnaire survey of Japanese companies in South Africa in 2016: Strategy for the future
8
55.2%(48Company)
41.4%(36Company)
2.3%(2Company)
1.1%(1Company)
拡⼤現状維持縮⼩第三国(地域)へ移転・撤退
縮⼩、もしくは第三国へ移転・撤退の理由○ Decrease in sales
○ Relationship with business partners8.3(4社)
4.2(2社)
6.3(3社)
6.3(3社)
14.6(7社)
16.7(8社)
18.8(9社)
79.2 (38社)
その他
研究開発
生産(汎用品)
サービス事務機能
生産(高付加価値品)
地域統括機能
物流機能
販売機能
Direction of business development in the next 1-2 years
Reasons for expansion(N=48)Multiple answers %
Functions to expand(N=48) Multiple answers %
Reduction or reasons for relocation to / exit to a third country
Increase in Sales
Growth, High Potential
Review Production / Sales Network
Relationship With Business Partners
Cost Reduction (Procurement Cost, Labor Cost, Etc.)
High Acceptance to High Added Value Products
Ease of Securing Labor
Relaxation of Regulation
Other
Sales Function
Logistics Function
Regional Overarching Function
Production (High Added Value Products)
Service Function
Production
Research and Development
Other
ExpandMaintain the Current ScaleDownsizeWithdrawal
Copyright©2017 JETRO. All rights reserved
JETROʼs questionnaire survey of Japanese companies in South Africa in 2016: Business Environment in RSA
9
9.2(8社)
3.4(3社)
4.6(4社)
6.9(6社)
6.9(6社)
6.9(6社)
10.3(9社)
12.6(11社)
14.9(13社)
16.1(14社)
17.2(15社)
24.1(21社)
31.0(27社)
32.2(28社)
43.7(38社)
65.5(57社)
その他
裾野産業の集積
(現地調達が容易)
従業員の雇いやすさ
(一般ワーカー、一般スタッフ・事務員等)
従業員の雇いやすさ
(専門職・技術職、中間管理職等)
投資奨励制度の充実
各種手続き等が迅速
従業員の定着率の高さ
土地/事務所スペースが豊富、
地価/賃料の安さ
従業員の質の高さ
(法人税、輸出入関税など)税制面でのインセンティブ
取引先(納入先)企業の集積
駐在員の生活環境が優れている
インフラの充実
安定した政治・社会情勢
言語・コミュニケーション上の障害の少なさ
市場規模/成長性
0.0
39.1(34社)
54.0(47社)
73.6(64社)
74.7(65社)
77.0(67社)
86.2(75社)
特に問題はない
貿易制度⾯
インフラの未整備
財務・⾦融・為替⾯
雇⽤・労働の問題
規制・法令の整備、運⽤
不安定な政治・社会情勢
Points to evaluate(N=87) Multiple answers % Points of challenges(N=87) Multiple answers %
Political and Social Instability
Legislation and Regulation Implementation
Labor Disputes and Lawsuits
Financial Affairs, Financing and Foreign Exchange
Insufficient Infrastructure
Underdeveloped Trading
System
No Particular Problems
Few obstacles for the communication
Political and social stability
Well established infraswtructure
Better living condition for the representatives
Cluster of business partners
Business incentives in tax regime
High quality of employees
Rich in space for the office and business activity
Low turnover rate
High velocity of administrative procedure
Well arranged investment promotion measures
Existence of professionals, technicians and managers
Existence of workers
Existence of supporting industries
others
Market size / potential for growth
Copyright©2017 JETRO. All rights reserved
JETROʼs questionnaire survey of Japanese companies in South Africa in 2016: Utilizaiton of FTAs/Custom union
10
23.0(20社)
42.5(37社)
16.1(14社)
23.0(20社)
分からない
利⽤していない・
今後の利⽤も検討していない
今後の利⽤を検討している
利⽤している
5.0(1社)
0.0
0.0
0.0
0.0
5.0(1社)
10.0(2社)
15.0(3社)
15.0(3社)
30.0(6社)
35.0(7社)
70.0 (14社)
その他の協定
⻄アフリカ経済通貨同盟(UEMOA)
⼤アラブ⾃由貿易地域(GAFTA)
アガディール協定
地中海諸国とEUの連合協定
⻄アフリカ諸国経済共同体(ECOWAS)
東アフリカ共同体関税同盟(EAC)
東南部アフリカ共同市場(COMESA)
南ア-EU貿易・開発・協⼒協定(TDCA)
EU・SADC⾃由貿易協定
欧州⾃由貿易連合(EFTA)・SADC⾃由貿易協定
南部アフリカ開発共同体(SADC)
Utilization rate of FTAs/customs union (N=87)
Multiple answers %
Used FTA / Customs union (N=20)Multiple answers %
Utilizing
Considering to Utilize
Not Utilizing
No Idea
Southern African Development Community (SADC)
European Free Trade Association (EFTA) · SADC Free Trade
Agreement
EU · SADC Free Trade Agreement
South Africa - EU Trade, Development and Cooperation
Agreement (TDCA)
South East Africa Common Market (COMESA)
East African Community Customs Union (EAC)
West African Economic Community (ECOWAS)
Union Agreement between the Mediterranean countries and the EU
Agadir Agreement
Large Arab Free Trade Area (GAFTA)
West African Economic and Monetary Union (UEMOA)
Other agreements
Copyright©2017 JETRO. All rights reserved
JETROʼs questionnaire survey of Japanese companies in South Africa in 2016: Utilization of FTAs/Custom union
11
0.0
0.0
7.1(1社)
7.1(1社)
14.3(2社)
14.3(2社)
14.3(2社)
21.4(3社)
28.6(4社)
28.6(4社)
35.7(5社)
78.6(11社)
その他の協定
アガディール協定
⼤アラブ⾃由貿易地域(GAFTA)
地中海諸国(エジプト/チュニジア/アルジェリア/モロッコ等)とEUの連合協定
東南部アフリカ共同市場(COMESA)
⻄アフリカ経済通貨同盟(UEMOA)
南ア-EU貿易・開発・協⼒協定(TDCA)
⻄アフリカ諸国経済共同体(ECOWAS)
欧州⾃由貿易連合(EFTA)・SADC⾃由貿易協定
EU・SADC⾃由貿易協定
東アフリカ共同体関税同盟(EAC)
南部アフリカ開発共同体(SADC)
9.2(7社)
1.3(1社)
6.6(5社)
6.6(5社)
7.9(6社)
7.9(6社)
10.5(8社)
10.5(8社)
15.8(12社)
15.8(12社)
17.1(13社)
19.7(15社)
22.4(17社)
23.7(18社)
23.7(18社)
23.7(18社)
40.8(31社)
47.4(36社)
51.3(39社)
その他
カメルーン
アルジェリア
コンゴ⺠主共和国
マダガスカル
ウガンダ
エジプト
モロッコ
コートジボワール
ジンバブエ
ザンビア
エチオピア
ガーナ
アンゴラ
モザンビーク
タンザニア
ナイジェリア
南アフリカ共和国
ケニア
FTAs/Customs unions to be utilized in the future (N=14)Multiple answers %
Countries and markets of interest(N=76)Multiple answers %
Southern African Development Community (SADC)
East African Community Customs Union (EAC)
EU · SADC Free Trade Agreement
European Free Trade Association (EFTA) · SADC Free Trade
Agreement
West African Economic Community (ECOWAS)
South Africa - EU Trade, Development and Cooperation
Agreement (TDCA)
West African Economic and Monetary Union (UEMOA)
South East Africa Common Market (COMESA)
Union Agreement between the Mediterranean countries and the EU
Large Arab Free Trade Area (GAFTA)
Agadir Agreement
Other agreements
Kenya
Republic of South Africa
Nigeria
Tanzania
Mozambique
Angola
Ghana
Ethiopia
Zambia
Zimbabwe
Cote d'Ivoire
Morocco
Egypt
Uganda
Madagascar
Democratic Republic of the Congo
Algeria
Cameroon
Other
Copyright©2017 JETRO. All rights reserved
Risk Structure of RSA
Labor disputesWage increase /
Credit Rating Deterioration
Deterioraion of competitiveness of manufacturing and mining
sectors
Low economic growth
High level of current account deficit
Decline in tax revenue
Expanding budget deficit
Deterioration of credit rating, increase of Investment cost,difficulty in the fiscal policy for the economic growth
Devaluation of Rand,Possible inflationary pressure
l High level of unemployment rate, existence of poverty and disparity: Distribution oriented economic policy for tackling these challenges
l Higher priority on the politics than economyl Enhancement of affirmative action
Backgrund
12
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Thank you very much.JETRO promotes the business development between
Japan and the Republic of South Africa.JETRO is ready to work together with you.