Japan's hidden involvement in South African manufacturing

This paper examines the development of Japanese involvement in South African manufacturing. In the extensive literature dealing with the growth and spread of Japanese investment abroad the unique situation of Japanese companies in South Africa has been overlooked. Despite the introduction of a ban on direct investment in South Africa there is a considerable hidden Japanese presence in local manufacturing which resulted from licensing arrangements. In particular, Japanese enterprise is strongly represented in the South African motor-vehicles sector where it is at the forefront in innovating new flexible production systems.