Ambassador Yoshio Yamawaki: “Japanese companies are not yet fully aware of the potential of investing in Cyprus”

His Excellency Yoshio Yamawaki, Ambassador of Japan to Cyprus, suggests more can be done to attract Japanese companies and investors' interest in Cyprus.

He believes that many areas of cooperation exist for the two countries to explore, from fintech and shipping to energy and culture.

In a recent interview in the 2024 edition of The Cyprus Journal of Wealth Management, Ambassador Yamawaki also reveals his enjoyment of visiting local villages and natural beauty spots… and cooking souvla.

What sectors do you consider to be of particular interest to Japanese companies considering investing in Cyprus?

I believe that much room exists for us to expand our cooperation in areas as diverse as business, research and development, innovation, disaster prevention, culture, people-to-people exchanges and more. Japanese companies might be interested in investing in Cyprus’ financial sector, including fintech. MUFG Investor Services is already expanding its investment in Cyprus in this area. Cyprus’ advantages include a stable and reliable legal and accounting system, professional staff with knowledge of the financial sector and excellent English-speaking local staff.

The shipping sector is also an area where there is a strong demand from the Cypriot side to strengthen relations with Japan. Currently, the only company from Japan with a presence in Cyprus is FURUNO, a marine electrical equipment company, which positions Cyprus as part of its global equipment service network. Japan has good shipbuilding companies and Cypriot shipowners have been placing orders with Japanese shipbuilders for decades. I see more opportunities in this area.

The energy sector, particularly renewable energy, is also promising. Cyprus attaches importance to renewable energy sources and the upgrading of the electricity transmission network. For example, the introduction of electricity storage systems is considered necessary for Cyprus to have an efficient power grid. Japan has proven electricity storage technologies which are already in commercial use. Our renewable energy technology could provide new business opportunities between Japan and Cyprus. In addition, high-tech startups are gaining momentum in Cyprus and the ICT and digital sectors have potential for high-tech cooperation with Japan. For example, we recently learned that a Cypriot advanced materials technology company is interested in cooperating with a leading Japanese materials company. I believe that Cypriot startups in cutting-edge technology fields, such as ICT, digitalisation, materials, health and medicine, have increased their potential for cooperation with Japan.

What can be done to better cultivate opportunities for collaboration between the two countries on both a business and a cultural level?

When it comes to the business sector, Japanese companies are not yet fully aware of the potential of investing in Cyprus. In April, Cyprus sent a business mission to Japan. The Minister of Energy, Commerce and Industry, the CCCI and other businessmen made a presentation on Cyprus’ investment attractiveness and held b2b consultations. Such opportunities are beneficial for understanding areas of mutual interest on both sides. Although frequent travel between Cyprus and Tokyo is difficult due to the distance, many Japanese companies have bases in Europe (e.g. London or Paris) and I believe that if we can provide opportunities for Cypriot companies to strengthen their relations with the European bases of these Japanese companies, it will lead to a better understanding of the investment environment in Cyprus by Japanese companies and create business opportunities between the two countries.

It would also be effective to strengthen cooperation between Cypriot companies and the Japan External Trade Organisation (JETRO) as well as with other investment support organisations in Japan.

So, what should the public and private sectors in Cyprus be doing?

I think that the Cypriot side needs to make an effort to explain its advantages more clearly and objectively. For example, not many Japanese shipping companies are interested in the Cypriot ship management sector, which Cyprus claims to be its strength. At present, there is no movement among Japanese companies to increase the number of ships under the Cypriot flag. It may be necessary to demonstrate to the Japanese shipping sector the concrete benefits of Cypriot ship management and the registration of Cypriot-flagged vessels. At the same time, I think it’s important to show how Cyprus is more attractive and advantageous compared to other regional competitors, such as countries in Eastern Europe, the Balkans and the Middle East. Conveying Cyprus’ strengths on the basis of objective comparisons would be more convincing to Japanese companies.

You mentioned culture and people-to-people exchanges. How can these be developed further?

Since the establishment of the Japanese Embassy in Nicosia six years ago, cultural exchanges have gradually expanded. Two years ago, a cherry blossom park was opened in the village of Kambos and, this year, the Japanese Embassy participated in the Sakura Blossom Festival in April and the Cherry Festival in June. I want to develop the park as a symbol of exchange between the two countries. Our embassy is also expanding activities through traditional Japanese culture, such as tea ceremonies, and contemporary culture. I would like to organise more cultural events, such as Japanese anime and manga that are of interest to young people. In the future, we would also like to promote activities that convey the appeal of Japanese food culture and Japanese sake.

Expanding people-to-people exchanges is important for strengthening bilateral ties in the future. Last year, we launched a programme to invite Cypriot high school students to Japan for a short period of time. Exchange scholarships for students from Cyprus to Japanese universities have been in place for more than 50 years. My intention is to continue these programmes in the future. I also hope that a number of two-way research visits will take place between Japan and Cyprus. A Memorandum of Understanding between the Deputy Ministry of Research, Innovation and Digital Policy and its counterpart in Japan is currently being considered to facilitate cooperation in the fields of research and innovation. I hope that this will provide an opportunity for a more active exchange of personnel and a deepening of joint research between the two countries.

On a more personal level, you have been in Cyprus for more than a year now and have an active presence on Instagram and Facebook. Can you tell us more about how your life in Cyprus? What are some of your favourite places so far and what are your thoughts on local culture and cuisine?

I thoroughly enjoy the Cypriot lifestyle and so far I have had the opportunity to explore the beauty of its cities, villages, mountains, beaches, archaeological sites and so on. One of the most memorable was the view from the top of a hill in Akamas, overlooking the magnificent peninsula and the blue lagoon sea.

I also enjoy Cypriot cuisine and, even more, cooking souvlaki and souvla at a barbecue party, which is a wonderful experience for me!

What legacy would you like to leave behind once your term in Cyprus ends?

It is my sincere wish and purpose to develop cooperation between Japan and Cyprus in as many fields and areas as possible.

(This article first appeared in the 2024 edition of The Cyprus Journal of Wealth Management, commissioned by Eurobank Cyprus and published by IMH. Click here to view the article. Click here to view the entire magazine online.)