BILATERAL RELATIONS – How Mauritian and Japanese companies can rise together

 On 23 February, Japan celebrates its reigning Emperor Naruhito’s Birthday.

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Japan has always fascinated the world. Its mysterium fascinans around its unique culture, food, technology, movies, nature brought Tokyo for the first time into the top 10 in the Euromonitor International’s report of the world’s Top 100 City Destinations for 2023.

Yet, Japan remains an exotic and a dreamland for many Mauritians, and vice versa. The number of Japanese nationals residing in Mauritius is 66 while the number of Mauritian nationals residing in Japan is 100 (all 2022 figures). Only a few thousands tourists travel to and from each country yearly. This is so even if Mauritians and Japanese need no tourist visa to enter each other’s country.

“Japanese do not really know much about Mauritian culture, so we have to work as a bridge to connect the two countries with a view to promoting the Mauritian culture in Japan,” declared Mr Yoshiharu Kato, then-Ambassador Extraordinary and Plenipotentiary of Japan in Mauritius, in an interview in the local press some years ago.

“As far as trade is concerned, I know there is an imbalance. Mauritian products are not easily accessible and visible in Japan,” he further added.

Why is it that, even if there are plenty of positive reports about investment in the African continent, even if Mauritius positions itself as a regional hub for Africa and an investment destination, and even if Mauritius is a member of the major African regional organisations(e.g. SADC, COMESA, IOR-ARC), “Japanese companies still need to think about possibilities of extending their businesses here” in Mauritius?

On this auspicious birthday occasion, I reflect on the ties between Mauritius and Japan, and what Mauritian companies can learn about their Japanese counterparts so as to build mutually beneficial business relationships.

My personal insights come from several trips made to Japan over the last decade, as part of the Core Team for a Japanese non-profit, meeting with Japanese multinationals and Ministries; staying with local families in villages; and trying to learn the Japanese language, and more.

Fancy a quick buck? Tough luck!

In my initial years, thinking ‘time=money”, I mistakenly, quickly and impatiently talked to the bottom line, skipping over the human and impact dimensions. Or, I learned the hard way from the Japanese, especially given the language differences, that time and patience are needed to understand and build partnerships. For them, cultural appreciation is key. They have a vision for the long-term.

An executive from a Japanese technology multinational taught me that this is a cultural exchange and one at the heart level. “Japanese people just can’t speak English, and they can be shy and avoid dialogue with foreigners or not express their true feelings. Not knowing the other person can make them feel anxious and sceptical.”

“That would make it difficult to do business or even have a conversation. There is a history of sharing time together, such as eating, drinking, and smoking together, leading to a rapprochement and subsequent contracts.”

“I believe that cultural exchange is effective in modern times. We believe that by sharing each other’s food, natural environment, music, etc., and through exchanges that go beyond race, it becomes easier to accept each other. Culture is essential to deepening dialogue with people. On the contrary, I believe that cultural exchange is the first step towards exchange of hearts.”

A common colleague, coming from an engineering & design multinational, spiced it up with new but key terms for me, that then stayed in my vocabulary, which eased future conversations. “There are three key words to work with Japanese companies. We prefer to build trust before working together. We love to exchange ‘meishi’ (business cards), and go for ‘nomikai’ (drink and eat together) and ‘nemawashi’ (pre-discussion before an official meeting).”

Like a bridge over troubled water

The troubled water of the trade imbalance is deep. Mauritius exported to Japan fishery products, textile, etc. for around Rs 260 million, and imported cars, fishery products, automobile related equipment, tires, etc for around Rs 5,000 million (all 2022 figures).

To bridge the 20X difference, there’s a need for some deep work in understanding how the Japanese corporation actually works.

In the past, I used to jump into the talks and ask “So, what do we have here?” and carry all the Mauritian baggage with me, until I got a figurative slap on the wrist by a colleague from a Japanese technology multinational, who made me reflect on the need to spend time building this bridge, studying the history of the corporation, how it is structured and how it takes its decisions.

He shared openly. “I think the biggest thing is to understand how to work in Japanese companies. First of all, many Japanese companies do not hire by job, but by whether you join the organisation or not. Once you are hired and join an organisation, you are rotated to experience different jobs.”

“Secondly, (although this is changing recently), Japanese companies are looking for people who can speak Japanese. Many executives in Japanese companies are still not fluent in English.”

“Third, Japanese companies have a relatively long corporate life span, so they value the company’s colour and traditions. To take the example of our company, the founder was a man who made karakuri dolls, so there are still lots of people who are interested in robots and so on. So, it would be good to know a bit about how Japanese companies work.”

Paving a path to trust, one brick at a time

Ikebana is the centuries-old Japanese art of arranging flowers, a practice, which roughly translates to “making flowers come alive,” that uses carefully selected blossoms and greenery to convey a specific feeling.

The Japanese tea ceremony is a cultural activity involving the ceremonial preparation and presentation of matcha, powdered green tea.

These two craftsmanship illustrate how Japanese are known to have a unique work culture, one that is detail oriented, paying attention to small things, with a sense of excellence.

Over time, as I pushed forwards, and struggled to get things done in my islander mentality ‘Mauritian way’, I started appreciating and absorbed by osmosis this particular work ethic, not without the help of local Japanese, and especially through observation and by politely asking questions in person.

One Japanese executive who has worked with Mauritians before squarely advised me. “You need to be patient and flexible with the relatively slow decision-making process, which involves senior management approval and deliberation among various stakeholders. Be prepared to provide detailed information and explanations to support Japanese companies’ decision and deal making.”

“Understand the importance of relationships and trust. Japanese companies value long-term and stable partnerships, and often base their decisions on the level of trust. Foreign companies should invest time and effort in building and maintaining relationships with Japanese companies, such as by meeting them in person regularly.”

I learned how details and culturally ‘sensing the air’ continue to matter. She elaborated. “Respect the norms in the Japanese work environment, such as punctuality, politeness, seniority, etc. Maintain timely communication. Be aware of Japanese companies’ tendency to prefer a low-key approach to an aggressive approach.”

Japanese companies need help to understand Africa, and this is where Mauritius can use its strong educated workforce, infrastructure assets, and strategic geographic positioning. She added. “Support Japanese companies with less experience in doing business in Africa and serve as a bridge to the continental market or a trustworthy partner with risk-adverse or conservative Japanese companies.”

Finally, in the Japanese tradition of planning in advance, she suggested that “one strategic way to promote business exchange between Mauritius and Japan would be to send more Mauritian youth to Japan and let them study or work in Japan aiming to make them expert at Japanese business and market.”

Peter-David Pedersen, Professor, Shizenkan University in Tokyo, with decades of experience working with Japanese companies, and sitting as Independent Director in a few of them, reinforced this importance of paving a path to trust, one brick at a time.

“The companies are risk averse and therefore take a long time to start a new relationship. They are very meticulous – which again can take time, but raises quality. They value punctuality and consistency as hallmarks of professionalism. They take a lot of time to try to arrive at consensus; then, when everyone is onboard, move forward without much fuss. They can appear rather conservative and may be better at incremental rather than disruptive innovation.”

Konni’chiwa! Japan

An ocean of opportunities await Mauritian companies in Japan. Japanese companies are very focused on quality, but also recently have been working on ESG, carbon neutrality, sustainability and circular economy. Additional areas for business collaboration would be ICT, Fintech, Fund Structuring, Renewable Energy and the Blue Economy.

We as Mauritians may not realise how strong and adaptive we actually are. Mauritian companies can be prepared, to be ready with their ‘meishi’, for ‘nemawashi’ and fully join the ‘nomikai’. In the land of the Rising Sun, the heart of the matter is a matter of the heart.

 

Jovin Hurry

Core Team Advisory, NELIS (Next Leaders’ Initiative for Sustainability)

References:

 

Euromonitor International at https://www.euromonitor.com/press/press-releases/dec-2023/euromonitor-internationals-report-reveals-worlds-top-100-city-destinations-for-2023 (last visited 17 Feb 2024)

 

Ministry of Foreign Affairs of Japan on Japan-Mauritius Relations (Basic Data) at https://www.mofa.go.jp/af/af1/mu/page23e_000216.html (last visited 16 Feb 2024)

 

Le DefiMedia.Info article (26 Mars 20218) at https://defimedia.info/mr-yoshiharu-kato-mauritian-destination-should-be-made-more-visible-japanese (last visited 16 Feb 2024)

 

Statistics Mauritius at https://statsmauritius.govmu.org/Documents/Statistics/ESI/2021/EI1567/Tourism_Yr20.pdf

(last visited 17 Feb 2024)

 

 

 

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