Japan is stepping up efforts to boost its presence in Africa, aiming to move beyond its long-standing role as a development donor and become a more active investor across the continent.

As the country emerges from three decades of deflation, officials say Japanese businesses are now more willing to take risks, something that’s fueling new interest in Africa’s markets and resources.

“Now the mindset of Japanese business leaders has changed dramatically and they are now much more proactive about expanding their business globally,” said Takehiko Matsuo, vice-minister for International Affairs at Japan’s Ministry of Economy, Trade and Industry, in an interview with Bloomberg.

“Africa is one of the destinations where we expect Japanese companies to grow their presence.”

While Japan’s foreign direct investment has traditionally been concentrated in the United States and the United Kingdom, Africa has only received 0.5% of that total.

That figure may begin to shift as Tokyo looks for alternatives to China, which currently dominates Africa’s trade relationships and supplies many of the raw materials Japan depends on.

Africa’s appeal lies in its fast-growing population, which offers significant long-term market potential, and its vast reserves of key natural resources.

Japan is particularly interested in critical minerals, base metals, and rare earths, sectors where China has long held a strong grip.

One example of Japan’s expanding interest came last year when Mitsui & Co., a major Japanese trading firm, became the highest bidder for a stake in First Quantum Minerals Ltd.’s copper mines in Zambia.

At the same time, Hitachi Construction Machinery Co. Ltd. has been working on hybrid dump trucks aimed at making mining operations more environmentally friendly.

For African nations, Japan’s increased focus on trade and investment comes at a critical moment.

The return of President Donald Trump to the White House has led to cuts in U.S. foreign aid, putting pressure on African economies to attract more private capital.

So far, Japan has not followed countries like the U.S., U.K., or Russia in reducing aid, a stance that could strengthen its position as a stable partner in the region.